BASF and Idemitsu End BDO JV
BASF, in mutual agreement with partner Idemitsu Kosan, has decided to end its joint-venture 1,4-butanediol (BDO) in Japan. Consequently, BASF Idemitsu’s BDO plant at Chiba, Japan, will close in December 2020. All 21 people employed at the plant will be offered alternative employment at either BASF or Idemitsu in Japan.
“The closure of the Chiba plant has become inevitable due to a declining BDO market size in Japan and significant overcapacities in Asia due to recent investments into new coal-based BDO production sites,” explained Masaru Saitoh, president of BASF Idemitsu.
China has become the world’s largest producer and consumer of BDO, adding much of the new capacity in recent years. However, the capacity increases has led to excess supply and lower prices for BDO.
BASF said its decision was part of an ongoing global review of long-term options for its options in the BDO value chain. The company added that it will continue to supply Japanese customers from its other BDO plants in Asia, North America and Europe.
Author: Elaine Burridge, Freelance Journalist
