2020 - 2021 Exhibitions
BASF/Idemitsu to shut down BDO plant in Japan
Japan’s Idemitsu Kosan Co says it is terminating the joint venture agreement with German chemical firm BASF, BASF Idemitsu (BASF 67% Idemitsu 33%), involved in the production and sales of 1, 4-Butanediol (BDO) and will withdraw from the BDO business. The decision is due to a declining BDO market size in Japan and significant overcapacities in Asia due to recent investments into new coal-based BDO production sites.
BDO and its derivatives are essential chemical materials for the production of engineering plastics, polyurethanes, solvents and elastic spandex fibres.
Idemitsu says, “After considering our future strategy, we concluded that it would be difficult to continue the business going forward.”
The plant with a capacity of 25,000 tonnes/year located at Idemitsu’s Chiba complex in Japan will cease operation in December 2020.
BASF said the decision is part of an ongoing global review of long-term options conducted by BASF for its assets in the BDO value chain. With production plants in Asia, North America and Europe for BDO and its derivatives, BASF says it will continue to offer BDO from its global sites to customers in Japan currently supplied from BIC.
“As one of the leading companies in the business with BDO and derivatives, we will continue to support our customers on a global basis with our high-quality products. The recent measure is part of our strategy to ensure that we further improve our competitiveness in the markets where we add long-term value to both our customers’ businesses and to BASF,” said Vasilios Galanos, Senior Vice President, Intermediates Asia Pacific, BASF.
(PRA)
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