Zhanjiang, China: BASF and Zhejiang Guanghua Technology Co. Ltd. recently signed a Letter of Intent that involves the supply of Neopentyl Glycol (NPG) from BASF's Zhanjiang Verbund site to KHUA, marking a significant milestone in their long-term partnership. KHUA is known for manufacturing saturated polyester resins for the powder coatings industry in China and is currently planning to construct a high-end powder coatings resins production plant with an annual capacity of 100 kilotons per annum (KT/a) in Donghai Island, Zhanjiang Economic & Technological Development Zone. This plant will be built in the same location where BASF is constructing a world-scale NPG plant that can produce up to 80,000 metric tons annually.

BASF's Senior Vice President of Intermediates Asia Pacific, Vasilios Galanos, expressed his satisfaction in strengthening the long-standing partnership between BASF and KHUA through co-location. Galanos is confident that this strategic move will lead to synergies that will benefit both parties, including enhanced collaboration, faster delivery, supply reliability, access to shared resources, and reduced costs. This collaboration will assist in fulfilling the surging requirement for environmentally friendly powder coatings not just within China, but across the entire Asia Pacific region.

Jeffrey Sun, Chairman of KHUA, expressed confidence in the success of their 100KT/a powder coating resin expansion project, which leverages their competitive advantages and strategic partnership with BASF, one of the world's leading NPG suppliers. Sun's high hopes for BASF’s Zhanjiang Verbund site, which utilizes clean energy and reduces emissions, will set a new standard in the petrochemical industry. The project will help reduce VOCs and contribute to a sustainable future with clear blue skies and white clouds.

BASF is set to strengthen its position as one of the leading NPG manufacturers with the new NPG plant at the Zhjanjiang Verbund site, which is expected to be available from Q4 2025. The plant will increase BASF's global NPG capacity from 255,000 metric tons to 335,000 metric tons annually. Upon completion, this will be the fifth NPG plant for BASF, in addition to the existing ones in Ludwigshafen, Germany; Freeport, Texas, United States; Nanjing and Jilin, China.

NPG serves as an intermediate primarily utilized for producing powder coating resins that have found great success in coating household appliances and in the construction industry. Powder coatings are preferred over liquid coatings due to their lower volatile organic compound (VOC) emissions, which can help users meet VOC emission standards by reducing VOC release by up to 50%. NPG also has applications in manufacturing lubricants, plasticizers, and pharmaceuticals.