BASF to exit butanediol joint-ventures in China
Chemicals group BASF has announced that it is taking steps to get out of butanediol (BDO) production in China.
BDO and its derivatives are used for producing plastics, polyurethanes, solvents and spandex fibres.
Towards the end of 2023, BASF started the process of divesting its shares in two joint-venture companies in China, BASF Markor Chemical Manufacturing and Markor Meiou Chemical.
BASF has assessed the market environment and product carbon footprint of BDO and its downstream products from different production sites worldwide. It said: “BDO value chains are under increased competitive pressure and are characterised by global overcapacities.”
It added that the carbide-based BDO and derivatives the two joint-venture companies in China produce “have a significantly higher product carbon footprint” owing to the use of coal as a base raw material and the high energy-intensity of the production processes involved.
It said that it will customise its global portfolio of BDO and affiliated downstream products to provide “competitive low-PCF offerings”.
It said the rest of its operations in China would be unaffected by this decision.
