Malaysia JV Builds 2-EHAcid Plant

BASF and Petronas Chemicals Group will build a 2-ethylhexanoic acid factory at the site of their joint venture in Kuantan, Malaysia, the companies announced yesterday.

The facility is designed with capacity to produce 30,000 metric tons per year of 2-EHAcid and is scheduled to open during the fourth quarter of 2016. 2-EHacid is a chemical intermediate used as a compound in a variety of applications, including the production of synthetic lubricants and oil additives.

Officials said the plant is being built to meet growing demand for 2-EHAcid in the Asia-Pacific region. They did not disclose the cost of the project but said the plant will be the first of its kind in Southeast Asia. BASF produces 2-EHAcid at its chemical complex in Ludwigshafen, Germany.

German chemical giant BASF owns 60 percent of the joint venture, BASF Petronas Chemicals, and Malaysian oil company Petronas owns the remaining 40 percent. The joint venture currently produces acrylic monomers, oxo products and butanediol.