BASF and Petronas Chemicals Group (PCG) have broken ground on an integrated aroma ingredients complex in Gebeng, Kuantan, Malaysia, through their joint venture company BASF Petronas Chemicals Sdn Bhd.
The complex, to be built within the existing site in Gebeng, which is jointly owned by BASF SE and PCG, will house a facility to produce citral and its precursors as well as associated downstream plants to manufacture citronellol and L-menthol.
“Our investment in the integrated aroma ingredients complex in Kuantan is a perfect example of how we are implementing our long-term strategy in Asia Pacific: we are collaborating with our longstanding trusted partner, Petronas; we are introducing an innovative production technology for the first time into Asia Pacific; and we are making another important step towards our objective to achieve local production of 75% of the products we sell in Asia Pacific,” said Martin Brudermüller, Vice Chairman of the Board of Executive Directors of BASF SE.
The $500 million complex will be developed in phases and the first plants of the complex are expected to come on-stream in 2016 and to create some 120 new employment opportunities. BASF and PCG founded their joint venture BASF Petronas Chemicals Sdn Bhd in 1997.