BASF PETRONAS Chemicals Opens New 2-Ethylhexanoic Acid Plant in Kuantan, Malaysia

BASF Petronas Chemicals (BPC), a joint venture between BASF and Petronas, has inaugurated its second production line for 2-ethylhexanoic acid (2-EHAcid) at the integrated site in Kuantan, Malaysia. This expansion aims to address the rapidly increasing demand for high-quality 2-EHAcid and demonstrates BPC’s commitment to its regional customers.

Stephan Kothrade, a member of BASF's Board of Executive Directors and Chief Technology Officer, stated, "This expansion represents a significant milestone in our strategy for profitable growth and value creation. We are focused on enhancing our presence in high-growth Asian markets, ensuring we meet our customers' increasing demand for high-quality products."

Michael Becker, Senior Vice President of Intermediates for Asia Pacific at BASF, emphasized the importance of the new facility in meeting the growing market needs: "With this expansion, we are better equipped to meet the rising demand for high-quality 2-ethylhexanoic acid across the Asia Pacific region. By increasing our production capacity, we improve our ability to respond to customer needs and solidify our market position as a leading supplier. Our vision remains to be the preferred partner for sustainable intermediates."

Mazuin Ismail, Managing Director and CEO of PETRONAS Chemicals Group Berhad and Chairman of BPC, noted the collaborative success behind the project: "This expansion highlights the strength of our partnership and our shared commitment to growth. We are excited about the future of this plant, as the increased capacity strategically positions BPC to leverage growth opportunities in the region. As demand for our products continues to rise, we are well-prepared to meet it efficiently, ensuring that our customers receive top-quality products in a timely manner."

Tan Aik Meam, Managing Director of BPC, expressed gratitude towards the support received from both parent companies, PETRONAS and BASF, which he described as crucial for the successful execution of the project. He also praised the project team for their exceptional work, which has been vital in achieving this capacity enhancement.

Since its establishment in 2016, the 2-EHAcid plant has played a pivotal role in supporting growth in the Southeast Asian region. The groundbreaking for the new production line took place in the first quarter of 2023, and as of the third quarter of 2024, the new line is fully operational, effectively doubling the annual production capacity to 60,000 metric tons. This expansion underscores BPC’s dedication to innovation and its commitment to meeting the evolving needs of customers worldwide.

BASF PETRONAS Chemicals Sdn. Bhd. is a joint venture based in Malaysia between BASF and Petroliam Nasional Berhad (PETRONAS), the country’s fully integrated oil and gas multinational, operating under its subsidiary, PETRONAS Chemicals Group Berhad (PCG). Established in 1997, the company runs an integrated Verbund site located in the Gebeng Industrial Zone in Pahang. BASF holds a 60% stake in the company, while PCG owns the remaining 40%. The company's main products include acrylic monomers, oxo products, 2-ethylhexanoic acid, highly reactive polyisobutene, and aroma ingredients.