BASF and SINOPEC to expand NPG production capacity in China


Germany-based chemical company BASF and China Petroleum & Chemical Corporation (SINOPEC) have agreed to expand the production capacity of neopentylglycol (NPG) at the Verbund site BASF-YPC in Nanjing, China.

The integrated petrochemical site BASF-YPC is a 50-50 joint venture (JV) between BASF and Sinopec founded in 2000 with a total investment of $5.2bn.

The production facility was established in 2015 and upon completion of the expansion, its annual capacity will be doubled to 80,000mt from the current annual capacity of 40,000mt.

The expanded capacity will become operational in 2020, which will allow the company to meet demand for low-VOC powder coating applications.

BASF Asia-Pacific Intermediates senior vice-president Narayan Krishnamohan said: “With this increased capacity, we will support the fast-growing customer demand for high-quality NPG in China and the Asia-Pacific region.

"The expansion is also in line with the trend towards environmentally friendly powder coatings with low-volatile organic compounds, or VOCs."

“The expansion is also in line with the trend towards environmentally friendly powder coatings with low-volatile organic compounds, or VOCs.”

NPG is used in many applications such as powder coatings, textiles, and construction due to its high chemical and thermal stability.

It is primarily used as a building block in polyester resins for coatings, unsaturated polyester and alkyd resins, lubricants and plasticisers.

Sinopec Yangzi Petrochemical Company and BASF-YPC chairman Li Cheng Feng said: "The investment further strengthens strategic success between SINOPEC and BASF as we both support the trend of sustainable development.”


Image: BASF and SINOPEC will expand the production capacity of neopentylglycol at the Verbund site. Photo: © BASF SE.