BASF Petronas Chemicals Sdn Bhd (BPC) said it would permanently shut down its butanediol (BDO) and derivatives plant in Kuantan, Malaysia as part of the company’s refocusing on long-term growth. The plant will cease operation in March next year, but it would not affect other production facilities within the complex, BPC CEO Datuk Sazali Hamzah said.
Hamzah said BPC would use advanced technology to produce new high-value products, in line with the expansion plan of its parent company Petronas Chemicals Group Bhd (PCG). PCG owns 40% in BPC, while BASF Nederland BV holds the remaining 60%. PCG said BPC would record an estimated one-off charge of $139 million, mostly related to the plant closure.
BPC started its butanediol business operations in 2004. It sells butanediol, gamma-butyrolactone, and tetrahydrofuran, which are usually used as intermediaries in the chemical industry. BPC said it would notify its customers about the closure to ensure a smooth transition and will continue serving them with other products.
