The BASF PolyTHF (polytetrahydrofuran) Plant, the largest of its kind in the world, has become operational at the
Shanghai Chemical Industrial Park (SCIP) in Caojing, Shanghai, according to the Beijing-based BASF (China) Ltd..
When a THF (tetrahydrofuran) plant goes into operation by the middle of 2005, the
Shanghai integrated site of BASF will acquire an annual capacity of 60,000 metric tons of Poly THF and 80,000 metric tons of THF. It is also the first investment project in China that is wholly owned by BASF.
The facilities in
Shanghai represent a further step in meeting the BASF Group's objective of achieving 20 percent of its sales and earnings in the chemical business in Asia Pacific by 2010, with 70 percent coming from local production.
A new proprietary technology for THF production is being used for the first time by BASF's
Shanghai plant. In this process, butane - obtained from widely available natural gas is used as a raw material for manufacturing THF, which is then used to produce PolyTHF. The innovative process eliminates the intermediate step of 1,4-butanediol (BDO), which was previously necessary.
"Our innovative production technology is less complex and thus enhances our competitiveness as one of the world's leading producers of THF and PolyTHF," said Dr. Walter Gramlich, head of BASF's Intermediates division.
With the new plants, BASF will primarily supply Chinese textilefibers manufacturers. PolyTHF is an important component in the production of elastic spandex fibers for sportswear, swimsuits, underwear and outerwear fabrics. In China, PolyTHF will be marketed under the brand name Bao Li Fu, which means "Enrich yourfabric."
"The new production plant is designed to make us the leading supplier of spandex raw materials in the rapidly growing Chinese market," said Gramlich. "Our close proximity allows us to serve our customers with additional flexibility, speed and increased delivery reliability."
In addition to its role in textiles, PolyTHF is also an important intermediate for thermoplastic polyurethanes (TPU), which are used for example in the manufacture of highly abrasion-resistant, yet flexible hoses, films and cable sheathing. Other TPU applications include thermoplastic polyetheresters and polyetheramides or cast elastomers required for the production of wheels for skateboards and inline skates. THF is a precursor of PolyTHF, but is also used as a special solvent in the production of pharmaceuticals.
The new plant supplements facilities supplement BASF's network of THF and PolyTHF production sites around the world. In Asia, this includes the Yokkaichi site in Japan and the Ulsan complex inSouth Korea. In addition, BASF manufactures both products in Ludwigshafen, Germany and Geismar, Louisiana, in the United States. BASF has total THF and PolyTHF capacities of 230,000 and 200,000 metric tons per year, respectively.
BASF is the world's leading chemical company, with its portfolio ranging from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas.
BASF has approximately 82,000 employees. BASF shares are tradedon the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF), Paris (BA) and Zurich (AN).
Last week, BASF published its financial results for 2004. For the first time for several years BASF again earned its cost of capital, plus a considerable premium of 1.8 billion EUR. For a growing number of products it was possible to pass on price increases to the market that were necessary due to significantly higher raw materials prices.
In a competitive market environment, BASF increased sales overall by 13 percent to 37.5 billion euro. Income from operations(EBIT) before special items rose significantly by 64 percent to 4.9 billion euro. Sales and earnings increased in all segments, in particular in the Chemicals segment, where sales rose by 22 percent and EBIT before special items by 167 percent.
Sales to customers in the Asia Pacific Area increased by 19 percent to 5,309 million euro especially in China, Korea, ASEAN and India, in spite of negative currency effects.
Jurgen Hambrecht, chairman of the Board of executive Directors of BASF Aktiengesellschaft, said,"We are confident when we look to the coming months, and we will continue to implement measures to optimize our portfolio, increase efficiency and reduce costs
