BASF explores avenues to further boost its investment in Malaysia

30-Mar-11

BASF SE, which is operates an integrated petrochemicals complex in Gebeng near Kuantan, is exploring avenues to further boost its investment in Malaysia, as per Bernama. BASF and Petronas signed a memorandum of understanding (MoU) last December to undertake a joint feasibility study to produce specialty chemicals in Gebeng, Pahang, and elsewhere in Malaysia in a move that would extend the two parties’ existing collaboration in the country. The two are considering a potential joint investment sum of RM4 billion. Under the terms of the MoU, the two parties will evaluate the technical, commercial and economic viability of jointly owning and operating world-scale facilities for the production of propylene and butylene based specialty chemicals. The study will also look into the expansion of existing facilities in Gebeng and the production of a new product called Super Absorbent Polymer (SAP), which is largely used in personal hygiene applications. The final scope of the investments will be determined following the outcome of the joint feasibility study which is targeted to be completed in Q4-2011.