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Basf and Petronas to produce aroma ingredients in Malaysia

Basf Petronas Chemicals invest $500 million in Gebeng

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe German chemical global leader Basf and the Malaysian Petronas Chemicals Group Berhad (Petronas) have decided to expand their joint venture Basf Petronas Chemicals (BasfPetronas) with a world-scale integrated aroma ingredients complex at Gebeng, near Kuantan, on the east coast of the Malaysia peninsula.

Through their BasfPetronas joint venture,Basf and Petronas operate one of the largest integrated chemical complex in the South-East Asia-Pacific region covering 150-hectare.

Basf-Petronas-Chemicals_Gebeng_Aroma_Ingredients_Project_MapBuilt in three phases having required $1.2 billion capital expenditure, the Gebeng chemical complex includes already 12 plants, a tank farm and a port.

So far Basf and Petronas had dedicated the Gebeng complex to produce the most important building blocks of the chemical and pharmaceutical industries such as acrylic monomer, butanediol and oxo-products used to manufacture automotive parts and coatings, adhesives, fine chemicals, healthcare, plastics, paints, textiles.

With 80% of its feedstock sourced locally from the South China Sea gas fields, the Gebeng integrated chemical complex is a good illustration of Malaysia strategy to explore all pockets of natural gas to sustain its economical development on the downstream sector.

In addition each $ million invested downstream creates three times more permanent jobs than the same $ million spent upstream.

On this base, Basf and Petronas have decided to take a leap in Gebeng with this greenfield integrated aroma ingredient complex project.

With this $500 million capital expenditure, the joint venture BasfPetronas is targeting to supply the whole Asia pacific region.

Basf-Petronas to phase the Gebeng Aroma Complex

The fast evolution of the food and beverage consumption in Asia is calling for more flavors and fragrances demands.

Basf-Petronas-Chemicals_Gebeng_Aroma_Ingredients_ProjectPre-designed by Basf, this integrated aroma ingredients complex will include:

 – Citral plant

 – Aroma precursor plants

 – World-scale L-menthol plant

 – Citronellol plant

Basf and Petronas are planning to implement the engineering and construction of these facilities in phases.

In selecting Gebeng for this additional production units, Basf and Petronas intend to benefit from the:

Basf-Petronas-Chemicals_Gebeng_Aroma_Ingredients_Projects – Optimization of the processes by their integration in the existing complex

 – Costs savings in using mostly the existing infrastructures

 – Access to markets through a global production network passing by the Basf Kuantan Verbund

For Petronas, this Gebeng expansion with aroma ingredients opens new opportunities in the food and beverage or pharmaceuticals segment not only for its domestic market but also for the whole Asia Pacific region.

BasfPetronas Chemicals expects this Gebeng integrated aroma ingredient complex to start commercial shipments of freshness of citrus, mint or rose to the flavor and fragrance industry in 2016.

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