BASF will provide KHUA with Neopentyl Glycol, an intermediate for producing resins for high-end powder coatings.
BASF and Zhejiang Guanghua Technology – KHUA have jointly announced that both companies have recently signed a Letter of Intent for the supply of Neopentyl Glycol (NPG), an intermediate mainly used in the production of resins for powder coatings
employed to paint household appliances and in the construction industry. The partnership will help to meet the growing demand for low-emission powder coatings in China and the wider Asia-Pacific region.
KHUA is a Chinese manufacturer of saturated polyester resins for the powder coatings industry which is planning to build a 100 kilotons per annum production plant for high-end powder coatings resins in Donghai Island – in the Zhanjiang Economic & Technological Development Zone – where BASF is building a world-scale NPG plant with an annual production capacity of 80,000 metric tons. The new facility is expected to become operative starting from the end of 2025, increasing the global production capacity of the company to 335,000 metric tons.
“We are pleased to strengthen our long-standing partnership with KHUA through co-location. We are confident that this strategic move will create synergies that benefit both parties, including enhanced collaboration and supply reliability, faster delivery, access to shared resources, and reduced costs. In addition, this partnership will help to meet the growing demand for eco-friendly powder coatings in China and the wider Asia Pacific region,” has stated Vasilios Galanos, the senior vice-president for the Intermediates division of BASF in the Asia-Pacific region.
“We have high hopes of BASF’s Zhanjiang Verbund site, which will set a new standard in the petrochemical industry by utilizing clean energy, conserving energy, and reducing emissions. Leveraging our competitive advantages, backed by the strategic partnership with BASF, one of the world’s leading NPG suppliers, as well as Zhanjiang’s unique geographical location, we are confident in the success of our 100KT/a powder coating resin expansion project. This will enable us to reduce VOCs and contribute to a sustainable future with clear blue skies and white clouds,” has also added Jeffrey Sun, the chairman of KHUA.