BASF and Petronas will build a new world-scale production plant for highly-reactive polyisobutene (HR-PIB) at the site of their existing joint venture in Kuantan, Malaysia, officials announced on Tuesday.

The plant, which will be the first of its kind in Southeast Asia, will have a total annual capacity of 50,000 tons of HR-PIB. It is expected to start production in the fourth quarter of 2017. 

HR-PIB is an important intermediate product for the manufacturing of high performance fuel and lubricant additives, including additives for sludge prevention.

“Leveraging excellence in technology will be an important factor in accelerating future profitable growth globally and especially in Asia,” said Dr. Christian Fischer,President of BASF’s performance chemicals division. “With this investment, we are building on the solid, long-term relationship with our strategic partner Petronas.”

The fully-integrated Kuantan site is one of BASF’s two Verbund sites in the Asia-Pacific region. According to Fischer, the joint investment with BASF’s partner Petronas at the Kuantan Verbund site will further increase security of supply for HR-PIB, especially for the Asian market. The new plant will also further strengthen the global footprint of BASF as the leading supplier of this product, according to company leaders.

“The investment marks another significant milestone in the development of the Kuantan site as a leading specialty chemicals hub in the Asia-Pacific region, in line with [Petronas'] strategy to diversify into specialty chemicals and solutions,” said Datuk Sazali Hamzah, CEO of the Petronas chemicals business. “It also strengthens the presence of highly advanced and forward oriented technologies and expertise in Malaysia and the region.”

BASF says it has over 70 years of experience in the manufacturing of HR-PIB. Besides the new plant in Asia, the company operates production facilities for HR-PIB at its Verbund sites in Ludwigshafen, Germany and Antwerp, Belgium, and within a joint venture with Sinopec YPC in Nanjing, China. 

BASF notes that it offers the broadest range of polyisobutenes in the market with different molecular weights, which are marketed by the global business unit fuel and lubricant solutions under the brand names ofOppanol and Glissopal.