Plant restarts and prices increase at BASF

11/10/2007

German chemicals company BASF is to restart its tetrahydrofuran (THF) plant at the Caojing site near Shanghai, China.

It now features a new production unit which allows it to use a more cost-effective raw material, butane diol (BDO) and as THF is used, among other things, to produce PolyTHF, the company will be able to ensure supply is consistent.

President, head of the operating division intermediates, Dr Walter Gramlich, said: "Our local PolyTHF production in Shanghai has established us as a reliable partner for our PolyTHF customers in China and Asia…We are presently exploring potential for further expansion of our PolyTHF capacity in Asia Pacific."

Its other THF and PolyTHF sites are in Ulsan (Korea), Ludwigshafen (Germany) and Louisiana (USA).

PolyTHF is used in the production of elastic spandex fibres for textiles such as sportswear, swimwear, underwear and outerwear. It is also an intermediate for thermoplastic polyurethanes (TPU), which are used in the manufacture of wheels for skateboards and inline skates, among other things.

The company also announced that it is to increase prices in Europe for polymer dispersions and additives by €40-60 per metric ton and for polymer powders by €80-100 per metric ton. Both changes will take effect on October 15, or as contracts allow.

These products are used as binders for fibres and polymers for adhesives, among other applications. The company cited rising production and logistic costs as the reason for the increase.