BASF Completes Capacity Expansion of Chemical Intermediate
United
States: BASF,
a leading Germany based manufacturer of chemicals, has made a double-digit
million-dollar investment to increase the capacity for 1,4-butanediol (BDO), a
chemical intermediate at its existing production facility in Geismar,
Louisiana. 2016 marks the 40th anniversary of the Geismar
manufacturing facility. The raw material used for the manufacturing of BDO are
natural gas, butane, coal, butadiene or propylene and it is used for the
production of plastics, electronic chemicals, solvents and elastic fibers. The
annual manufacturing capacity of BASF is 670,000 metric tons of BDO, which
would increase by 20 per cent during the first quarter of 2016. In addition,
BASF has production facilities for manufacturing BDO in Germany, Malaysia,
China, and Japan.
TechSci Research depicts that the expansion of 1,4 butanediol would
enable BASF to address the growing demand in North America as well as South
America. Additionally, growing production of 1,4 butanediol would create
increased demand for butadiene, which is a major raw material for the product.
According to TechSci Research report, “Global Butadiene
Market Forecast and Opportunities, 2020”,
global
butadiene market is expected to cross 13 million metric tons in volume terms by
2020. The report reveals that majority chunk of butadiene is processed for
manufacturing derivatives that are categorized as synthetic rubber. Wherein,
PBR and SBR dominate the quantity of butadiene processed and they are followed
by ABS Resins, SB latex and Adiponitrile. Further they are used primarily for
manufacturing tire and automotive components followed by carpets, paper coats,
etc.