BASF and SINOPEC Corp. sign Memorandum of Understanding to explore building a world-scale isononanol plant in Maoming, China

BASF and China Petroleum & Chemical Corporation (SINOPEC) have signed a Memorandum of Understanding (MoU) to further strengthen their cooperation by jointly exploring the possibility of building a world-scale isononanol (INA) plant in Maoming Hi-tech Industrial Development Zone, Maoming, China. The final scope of the investment will be determined following the outcome of the joint feasibility study, which is expected by the end of 2012.

Under the terms of the MoU, the two parties will evaluate the technical, commercial and economic viability of jointly owning and operating a world-scale facility for the production of INA under a 50-50 joint venture agreement.

INA is used as the feedstock for the production of next generation plasticizers, e.g. diisononyl phthalate (DINP) and non-phthalate plasticizer Hexamoll® DINCH®. DINP is widely used as a plasticizer in industrial applications such as automotive, wires and cables, flooring, building and construction while Hexamoll® DINCH® is the plasticizer of choice for sensitive applications.

The agreement was signed in Shenzhen, China, by Dr. Albert Heuser, President BASF Asia Pacific and Dr. Yu Xizhi, President of SINOPEC Corp. Maoming Company, on July 30.