BASF to acquire Sinopec’s alkoxylate production assets in Asia Pacific

German Chemical Giant BASF, the largest chemical producing company in the world, has expanded its Asia Pacific presence with the acquisition of alkoxylates production assets from Sinopec Shanghai Petrochemical Company (SPC) in Jinshan, China. 

As a part of the deal, BASF has acquired land, buildings, and assets of Sinopec Shanghai Petrochemical Company, related to alkoxylates production, adjoining the BASF Jinshan site.

Dr. Stephan Kothrade, BASF’s Greater China Chairman and President said ”This investment reinforces BASF’s commitment to China and makes Jinshan a significant production base for a range of products across the Care Chemicals portfolio in the region”.

“Expanding production capabilities in Asia to support our customers’ growth is a key pillar of our business strategy. We see multiple positive implications with this investment in Asia, including enhancing our supply chain to serve our customers more efficiently, establishing a stronger base for our innovate-to-market approach, and providing future expansion possibilities on the site,” said Dr. Rajan Venkatesh, Senior Vice President, Care Chemicals, BASF Asia Pacific.

“We are seeing a rising demand for high-quality alkoxylates in the Asia Pacific market, especially in China. This strategic expansion will double our alkoxylate capacities in Jinshan and increase our overall capacity in the Asia Pacific. We will focus on maximizing synergies between the existing and new operations and supporting the growth of our customers and the market,” said Dr. Jianwen Mao, Vice President, Business Management Greater China, Home Care, Industrial & Institutional, and Industrial Formulators, Care Chemicals, BASF Asia Pacific.

Alkoxylates are the chemicals that are produced by the addition of ethylene oxide, propylene oxide, and butylene oxide to fatty hydrophobes, via alkoxylation. Alkoxylates are biodegradable in nature and therefore are environmentally friendly. Alkoxylation technology is used in the manufacture of surfactants that are employed in a wide range of industry segments, including home care, formulations for laundry detergents, surface cleaners and dishwasher detergents, personal care, industrial and institutional cleaning applications as well as industrial formulations like in raw materials for the manufacture of plasticizers, emulsifiers for emulsion polymerization, crop protection additives, and polyurethane foams for the rubber industry.

With the current alkoxylate line in Care Chemicals Jinshan plant running at full capacity, this acquisition will help BASF double the capacity at Jinshan from the end 2020, in order to fulfill the growing demand from consumers across the Asia Pacific, especially China.

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Image Source: BASF