BASF's Maleic anhydride factory to be leased by Petronas Chemicals in Malaysia

Klang- Maleic Anhydride price dynamics remained on the softer edge in the Malaysian market impacted by the fluctuating feedstock (benzene and n-butane) prices. While the market is now in better strength, it is subject to price volatility and other ups and downs. The market is faced with significant uncertainties because of the varying demand strength for the product from end-use manufacturing units such as butanediol, unsaturated polymer resins, and other solvent-consuming industries. In the second week of June, Maleic Anhydride price momentum was witnessed to loosen up and quotations were observed at USD 1075 per MT, FOB Klang in the Malaysian market.

PETRONAS Chemicals Group Berhad (PCG) has achieved a final investment decision (FID) with BASF PETRONAS Chemicals Sdn. Bhd. (BPC) to acquire a Maleic Anhydride plant with a productional capacity of 113 KT per annum in Gebeng, Kuantan (Malaysia).

To increase the availability of PCG derivative products, the facility will broaden the product range of PCG and its derivatives. The signed investment marks the beginning of the execution phase of the plant project, which is planned to be completed in the second half of 2025, to update and improve facilities to produce processed Maleic Anhydride. Maleic Anhydride is primarily used in the production of unsaturated polyester resins, paints, and food flavourings. The Maleic Anhydride factory was previously administered by BPC, a PCG joint venture business, but will now be handled by PCG's subsidiary, PETRONAS Chemicals MTBE Sdn. Bhd., upon the closing of this acquisition.

This also enables the PCG to produce Maleic Anhydride to satisfy the growing demand from customers in the Asia Pacific region, while exploring possible opportunities in the European and Middle Eastern markets. Furthermore, the factory will allow Maleic Anhydride specialized chemical derivatives to be integrated with both companies, Perstorp and BRB (subsidiaries of PETRONAS), in the future to deliver better solutions and the prospect of collaborations with other Maleic Anhydride downstream manufacturers in Malaysia.

The Malaysian government aims to increase the productivity and trading rate of produced commodities in the domestic and international markets respectively in the upcoming years. The New Industrial Master Plan 2030 (NIMP2030) is being developed by the Ministry of Investment, Trade, and Industry (Miti) to accelerate industrial development and improve Malaysia's economic complexity. The goal of NIMP2030, which will be launched in August, is very much following the New Investment Policy, which has clearly defined five industries that might help boost future exports of more complicated products, as stated by government officials. As per ChemAnalyst, Maleic Anhydride prices are anticipated to regain strength on account of better availability of stock along with inclined production cost in the domestic market.