They said in a joint statement on Tuesday the plant, which will be the first of its kind in South East Asia with a total annual capacity of 50,000 tonnes of HR-PIB, was expected to start production in the fourth quarter of 2017.
The new plant would be at the site of their existing joint venture, BASF Petronas Chemicals Sdn Bhd.
Petronas Chemicals Group president and CEO Datuk Sazali Hamzah said the investment marked another significant milestone in the development of the Kuantan site as a leading specialty chemicals hub in the Asia Pacific region.
He said the investment was in line with the company’s strategy to diversify into specialty chemicals and solutions.
“It also strengthens the presence of highly advanced and forward oriented technologies and expertise in Malaysia and the region,” said Sazali.
President of BASF’s performance chemicals division Dr Christian Fischer said this investment reflected BASF’s decision to build on the solid, long-term relationship with its strategic partner, Petronas.
“Leveraging excellence in technology will be an important factor in accelerating future profitable growth globally and especially in Asia,” he said.
BASF has over 70 years of experience in the manufacturing of HR-PIB. Besides the new plant in Asia, the company operates production facilities for HR-PIB at its Verbund sites in Ludwigshafen, Germany and Antwerp, Belgium, and within a joint venture with Sinopec YPC in Nanjing, China.