BASF and SINOPEC sign MoU

BASF, the world´s leading chemical company and China Petroleum & Chemical Corporation (Sinopec) signed a Memorandum of Understanding (MoU) that paves the way for the strengthening of cooperation between the two companies. BASF and Sinopec will jointly explore the possibility of building a world-scale isononanol (INA) plant in the Maoming Hi-tech Industrial Development Zone, in Maoming, China. The joint feasibility study, which is expected to be completed by the end of 2012, will determine the final scope of the investment. The MoU stipulates that the two parties will evaluate the technical, commercial and economic viability of a 50-50 joint venture that will involve constructing and operating a world-scale facility for the production of INA. INA is used as the feedstock for the production of next generation plasticizers which are widely used in industrial applications in making wires and cables, and flooring in the automotive and construction sectors.
The two companies already jointly operate BASF-YPC Co. Ltd., a 50-50 joint venture in Nanjing, China. BASF-YPC Co. Ltd. is one of China’s largest petrochemical joint ventures, which produces a wide range of high quality chemicals for the rapidly growing Chinese market. (August 2, 2012)