BASF to Build World's Biggest PolyTHF Plant in China

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Researched by Industrialinfo.com (Industrial Information Resources Incorporated; Houston, Texas). A license issued by the Shanghai Administration for Industry and Commerce (a Chinese government agency) will enable BASF Chemicals (FRANKFURT:BAS, NYSE:BF) (Ludwigshafen, Germany) to build the world's largest integrated production facility for polytetrahydrofuran (PolyTHF) and tetrahydrofuran (THF) in the Shanghai Chemical Industry Park in Caojing.

The plant will cater to the emerging customer needs for polyTHF and THF in China and the Asia Pacific region with an annual capacity of 60,000 tons of polyTHF and 80,000 tons of THF. The global demand for polyTHF is estimated to be 200,000 tons, with the market expected to grow annually by 5% to 10%. The integrated facility is scheduled to come on stream in 2004.

The plants will utilize BASF's newly developed proprietary technology to convert butane directly to THF and subsequently to polyTHF. The new technology eliminates the intermediate step of producing 1,4-butanediol (BDO) and makes manufacturing more efficient giving BASF a cost edge.

PolyTHF is an important component in the manufacture of elastic fibers, which are widely used for textile applications like sportswear, inner and outerwear. It is also important as an intermediate for thermoplastic polyetheresters or polytheramides and cast elastometers, which are used in, among other applications, the manufacturing of wheels for skateboards and inline skates.

THF is a precursor for polyTHF and is also used as a specialty solvent.