BASF continues to draw down its presence in the European plastics production sector. In the latest move, announced on Mar. 16, the German group said it plans to merge its polyoxymethylene (POM) production activities into a 50:50 joint venture with South Korea’s Kolon Plastics.

The jv would be headquartered in Korea, where the two companies intend to build a new 70,000 t/y plant at Kolon’s existing production site at Gimcheon, Korea. When this facility, being touted as the world’s largest, goes on stream in the second half 2018, the German chemical giant will close its plant at Ludwigshafen.

According to a Korean regulatory filing, the new plant, which the companies said will use a “globally leading” and “highly efficient” process owned by Kolon, will cost $200 million to build. Leveraging the efficiencies of the existing infrastructure will generate “significant synergies,” the future partners said.

Output will be marketed under the proprietary trade names and formulations of the two companies. Kolon’s product is sold as Kocetal, and BASF markets its POM as Ultraform.

The Korean company began commercial production of POM in 1998 with a capacity of 30,000 t/y. It expanded output in 2010 and 2012 and is now believed to be able to produce more than 50,000 t/y. In addition to the acetal polymer, Kolon also produces PA, PBT, PET, POM, TPEE and the high performance polymer PPS.

Other major producers of POM include the world market leader Polyplastics, based in Japan, and its erstwhile joint venture partner, Celanese of the US.

When announcing their initial collaboration, the German and Korean companies suggested that this may be only the first step. “We are looking forward to this joint venture that may lead to further opportunities for cooperation,” said Hee Goo Jang, CEO of Kolon.

Against the backdrop of a growing market for POM, Raimar Jahn, president of BASF’s Performance Materials division, said the joint venture will strengthen the German chemical giant’s ability to support customers with high-performing, innovative specialties, especially in Asia.

The high strength and resilience, friction performance and chemical resistance of POM enables a broad range of applications in automotive manufacturing as well as for electric and electronic goods, consumer goods, medical products and construction, BASF said.