BASF and Xinjiang Markor Chemical Industry Co., Ltd. (Markor) have signed key cooperation contracts for the establishment of joint ventures for the production of butanediol (BDO) and polytetrahydrofuran (PolyTHF®, chemical name: polytetramethylene ether glycol). The joint venture companies will be established once the relevant Chinese regulatory approvals are obtained.
The key cooperation contracts were signed in the presence of Li Keqiang, Premier of China and Angela Merkel, Chancellor of Germany, by Kurt Bock, Chairman of the Board of Executive Directors, BASF SE and Richard Feng, Chairman and CEO of Markor Group. Both Markor and BASF reaffirm their commitment to serving customers in China and supporting the local community in Korla, Xinjiang Uygur autonomous region, Northwest China.
BASF and Markor announced their plan to establish two joint venture companies in Korla, Xinjiang Uygur autonomous region, Northwest China in March. The investment will expand the local production capacity of BDO and PolyTHF. The joint ventures include a plant for the production of BDO and one for PolyTHF, which are planned to go on stream in 2015. The annual capacities of the plants located in Korla will be 100,000 tons of BDO and 50,000 tons of PolyTHF.
Xinjiang Markor Chemical Industry Co., Ltd. is a subsidiary of Markor Investment Group Co., Ltd. which was founded in 2004. It is located in Markor Chemical Park in Economic and Technological Development zone, Korla, Xinjiang, China. By leveraging the comprehensive advantages of local natural gas resources in Korla, Markor’s BDO production has achieved outstanding performance in energy saving and environmental protection. Markor is one of the leading manufacturers in the BDO downstream market, and has achieved outstanding performance in product quality and customer service.