BASF Petronas Chemicals to Permanently Shut Butanediol and Derivatives Plant in Kuantan, Directing a Shift to its Business Portfolio

Aiming to restructure its business portfolio for sustained growth, BASF Petronas Chemicals Sdn Bhd (BPC) has announced a permanent turnaround at it Butanediol (BDO) and derivatives plant at Kuantan, Malaysia by March 2021.

BDO and its derivatives are widely utilized to produce polyurethanes, engineering plastics, elastic spandex fibres, and solvents. Consistent capacity additions in the region due to latest investments in advanced coal based BDO manufacturing sites compelled the company to undertake a strategic shift that intends at expanding its future profit margins. For a smooth transition, the company is currently reaching out in support from all its existing customers, meanwhile it is also assuring consistent survive of its other products, promising stability.

BASF Petronas Chemicals (BPC) based in Malaysia is a joint venture between BASF and Petronas Chemicals Group Berhad (PCG). Supporting the closure, Managing Director CEO of PCG called it a well-versed move will allow the company for a favourable shift to new segments showcasing potential growth. In addition, the closure is in line with PCG’s mega expansion plans including the setup of specialty chemicals segments and innovating the existing ones using advanced technologies.

ChemAnalyst predicts that the closure of BPC’s Butanediol plant may not hinder the regional supply but can adhere severe effects to the importing countries based in Asia and Europe. However, with consistent addition and expansion of existing capacities, these effects might nullify in the long run.