BASF has inaugurated its new neopentyl glycol (NPG) plant at its Verbund site in Zhanjiang, China, significantly increasing the company's global production capacity.

The new plant boosts BASF's worldwide NPG capacity from 255,000 to 335,000 metric tons annually, reinforcing its position as a leading NPG manufacturer.

NPG is an intermediate mainly used in the production of powder coating resins. The first customer delivery was made in October.

Meanwhile, BASF has launched NPG with a reduced product carbon footprint (rPCF), namely NEOL Neopentylglycol solution 90% rPCF AP1, for the NPG produced at the Zhanjiang Verbund site.

Preliminary evaluations indicate that the PCF of NPG produced in Zhanjiang is lower than the PCF of the same product manufactured at BASF’s existing NPG plants in Asia2, due to the site’s highly efficient production technologies, Verbund integration benefits, as well as the use of lower carbon footprint chemical feedstocks and 100% renewable electricity.

The expansion allows BASF to respond more quickly to the growing demand for low-emission powder coatings in the Asia-Pacific region, particularly in the Chinese market.

Michael Becker, Senior Vice President, Intermediates Asia Pacific, BASF, said, “The new NPG plant bolsters our local production footprint by strengthening our speed and responsiveness to increasing customer demand for eco-friendly powder coating resins across Asia Pacific. This represents an important step toward our vision of being the preferred partner for sustainable intermediates.”

The Zhanjiang Verbund site is BASF's largest investment, costing up to €10 billion upon its completion in 2030. It is set to be the company's third-largest Verbund site globally.