BASF, the renowned German chemical company, has recently announced the signing of a letter of intent with Zhejiang Guanghua Technology (also known as KHUA) to supply neopentyl glycol from its Zhanjiang Verbund site in China. This agreement is in conjunction with KHUA’s plans to construct a state-of-the-art production plant for powder coating resins on Donghai Island, where BASF is currently building a neopentyl glycol plant.
As part of this strategic move, both parties will benefit from various synergies such as enhanced collaboration, improved supply reliability, expedited delivery, access to shared resources, and reduced costs. Vasilios Galanos, Senior Vice President of Intermediates Asia Pacific at BASF, stated, “This strategic move will create synergies that benefit both parties, including enhanced collaboration and supply reliability, faster delivery, access to shared resources, and reduced costs.”
BASF anticipates that the neopentyl glycol plant at the Zhanjiang Verbund site will be operational by the fourth quarter of 2025. With this expansion, BASF’s global neopentyl glycol capacity will increase from 255,000 metric tons annually to 335,000 metric tons.
