BASF to supply neopentyl glycol for powder coatings production in China

BASF and KHUA have signed a letter of intent to this effect. KHUA, a renowned manufacturer of saturated polyester resins for the powder coatings industry in China, plans to build a production plant for high-quality powder coating resins with an annual capacity of 100,000 metric tons on Donghai Island in the Zhanjiang Economic & Technological Development Zone. BASF is building an NPG plant there with an annual production capacity of 80,000 metric tons. Vasilios Galanos, senior vice president, Intermediates Asia Pacific at BASF, said, "We are pleased to strengthen our long-standing partnership with KHUA through the joint site. We are confident that this strategic move will create synergies that will benefit both parties. These include improved collaboration and supply security, faster deliveries, access to shared resources and lower costs. In addition, this partnership will help meet the growing demand for environmentally friendly powder coatings in China and the wider Asia-Pacific region."

"We have high hopes for BASF's Zhanjiang Verbund site, which will set a new standard in the petrochemical industry by using clean energy, saving energy and reducing emissions. We intend to leverage our competitive advantages resulting from the strategic partnership with BASF, one of the world's leading NPG suppliers, and the unique geographical location of Zhanjiang, and are confident that our project to expand to 100KT/a of powder coating resin will be successful. This will enable us to reduce VOC emissions and contribute to a sustainable future," said Jeffrey Sun, Chairman of KHUA. The new NPG plant at the Zhjanjiang Verbund site, which is expected to come on stream in the fourth quarter of 2025, will increase BASF's global NPG capacity from 255,000 metric tons to 335,000 metric tons per year, strengthening its position as one of the world's leading NPG producers. When completed, this will be BASF's fifth NPG plant, with other such plants operating in Ludwigshafen, Germany; Freeport, Texas, USA; and Nanjing and Jilin, China. NPG is an intermediate used mainly in the production of powder coatings, which are used to coat household appliances and in the construction industry. Due to their low levels of volatile organic compounds (VOCs), powder coatings enable their users to comply with VOC emission standards by reducing the release of VOCs by up to 50 percent compared to liquid coatings.