Basf Petronas Chemicals invest $500 million in Gebeng
The German chemical global leader Basf and the Malaysian Petronas Chemicals Group Berhad (Petronas) have decided to expand their joint venture Basf Petronas Chemicals (Basf–Petronas) with a world-scale integrated aroma ingredients complex at Gebeng, near Kuantan, on the east coast of the Malaysia peninsula.
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.
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.
– Citral plant
– Aroma precursor plants
– World-scale L-menthol plant
– Citronellol plant
– 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.