BASF PETRONAS Chemicals to Close Butanediol Plant in Malaysia

BASF PETRONAS Chemicals Sdn Bhd (BPC), a joint venture between Germany’s BASF and Malaysia’s PETRONAS Chemicals Group Berhad (PCG) said it will close its butanediol (BDO) and derivatives plant at Kuantan, Malaysia, as part of its product portfolio realignment.

The closure will take effect in March 2021, but will not impact other plants within the facility.

“The decision to close the BDO plant will have long-term strategic benefits to BPC and its stakeholders, given the shift in business landscape as well as its unfavorable long term prospect,” said Datuk Sazali Hamzah, managing director and chief executive officer, PCG.

“In line with PCG’s own expansion plans which include developing a specialty chemicals segment, we are looking forward to producing new high value products using advanced technologies. This would enable us to access to new markets and customers, thus further enhancing our growth for business sustainability,” Datuk added.

Marko Murtonen, managing director of BASF PETRONAS Chemicals, added: “This decision is also a result of significant overcapacities in the region due to recent investments into new coal-based BDO production sites. BPC is reaching out to all customers to support a smooth transition and we will continue to serve our customers in the region with other products from BPC. In addition, BPC will work closely and provide assistance to our impacted employees in this transition period.”

BDO and its derivatives are essential chemical materials for the production of engineering plastics, polyurethanes, solvents and elastic spandex fibers.

Last year, PETRONAS Chemicals acquired Da Vinci Group B.V which marked PCG’s first foray into specialty chemicals.