Expansions: BASF Petronas Chemicals inaugurates 2-EH acid plant in Malaysia; Alpla opens recycling plant in South Africa

German/Malaysian joint venture firm BASF PETRONAS Chemicals (BPC) recently celebrated the inauguration of its second 2-ethylhexanoic acid (2-EHAcid) production line at the integrated site in Kuantan, Malaysia.

Since its establishment in 2016, the 2-EHAcid plant has played an important role in supporting growth in Southeast Asia region. The groundbreaking for a second production line took place in Q1 2023. As of Q3 2024, the new production line is fully operational, doubling the annual production capacity to 60,000 tonnes.

"This expansion is a significant step in our commitment to profitable growth and value creation. As part of our new strategy, we are dedicated to enhancing the footprint of our core businesses in high-growth Asian markets, ensuring that we meet the increasing needs of our customers with high-quality products," said Stephan Kothrade, member of the Board of Executive Directors/Chief Technology Officer of BASF SE.

"This expansion enables us to better meet the rapidly growing demand for high-quality 2-ethylhexanoic acid in the Asia Pacific region. By enhancing our capacity, we strengthen our responsiveness to customer needs and solidify our position as a leading supplier in the market. We are committed to our vision to be the preferred partner for sustainable intermediates," said Michael Becker, Senior Vice President, Intermediates Asia Pacific, BASF.

"This successful expansion signifies the ongoing strength of our and shared commitment to growth and collaboration. We are excited about the future partnership of this plant, as the increased capacity strategically positions BPC to capitalise on growth opportunities in the region. With demand for our product continuing to rise, we are well-equipped to meet it efficiently and effectively, ensuring our customers receive top-quality products promptly," said Mazuin Ismail, Managing Director/ Chief Executive Officer, PETRONAS Chemicals Group Berhad and Chairman of BPC.

In other news, packaging/recycling firm Alpla  says itis entering the South African PET recycling market. Approximately one and a half years after the start of construction, the packaging and recycling specialist is opening a plant in Ballito. The company has invested EUR60 million in the new plant in the province of KwaZulu-Natal. From 2025, it will produce up to 35,000 tonnes/year of recycled PET (rPET). The high-quality material will then be processed into safe, affordable and sustainable plastic packaging at Alpla’s production plant in Lanseria.

The plant, which is located on a 90,000-sq-m site in the coastal town of Ballito, will provide an economic boost to the densely populated province of KwaZulu-Natal and the iLembe district, says the firm.

“South Africa is a strategically important market for us and one in which we want to continue to grow. Together with our customers and partners, our aim is to provide safe, affordable and sustainable packaging solutions to our customers and to continue improving standards of living. With our investments in Ballito and before that in Lanseria, we have laid the foundation for a successful future,” says Alpla CEO Philipp Lehner, at the opening ceremony.

The Ballito recycling plant will have an initial output capacity of 35,000 tonnes of rPET flakes, of which 16,000 tonnes will be processed into rPET pellets. An extrusion line has been installed for this purpose. Once all processes have been qualified and the flakes and pellets have been approved by the customer, Alpla adds it will start production in early 2025.

Under South Africa’s Extended Producer Responsibility (EPR) regulation, which came into force in 2021, PET drinks bottles have had to contain 10% recycled material since 2022. The legislation requires this to double to 20% by 2026.

The recycling plant is already designed to increase the proportion of pellets and can accommodate a second extrusion line for this purpose. An additional 30,000 sq m of space is available at the site for further expansion. Alpla adds it will process the high-quality recycled material into PET preforms for the production of drinks bottles at the Lanseria plant, which opened in 2022.

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