- KHUA is planning to build a 100KT/a production plant for high-end powder coatings resins in Zhanjiang
- Partnership will help to meet the growing demand for low-emission powder coatings in China and the wider Asia Pacific region
BASF and Zhejiang Guanghua Technology Co.,Ltd. (KHUA) have signed a Letter of Intent (LoI) for the supply of Neopentyl Glycol (NPG) from BASF’s Zhanjiang Verbund site to KHUA. This agreement marks a significant milestone in the long-term partnership between both parties.
Credit: BASF
BASF und Zhejiang Guanghua Technology Co.,Ltd. (KHUA) haben eine Absichtserklärung (Letter of Intent, LoI) über die Lieferung von Neopentylglykol (NPG) vom BASF-Verbundstandort Zhanjiang an KHUA unterzeichnet. Diese Vereinbarung stellt einen wichtigen Meilenstein in der langfristigen Partnerschaft zwischen beiden Parteien dar. Das Foto zeigt die Unterzeichnungszeremonie. Vordere Reihe, von links nach rechts: Haryono Lim, Senior Vice President, New Verbund Site China, BASF, Yao ChunHai, General Manager, KHUA, hintere Reihe, von links nach rechts: Vasilios Galanos, Senior Vice President, Intermediates Asia Pacific, BASF, Hong Tao, stellvertretender Sekretär und stellvertretender Leiter des Joint Party Committee of Advanced Manufacturing Key Project Construction Taskforce von Zhanjiang Economic & Technological Development Zone (ZETDZ) und Fenyong High-Tech Zone, Jeffrey Sun, Vorsitzender, KHUA. / BASF and Zhejiang Guanghua Technology Co.,Ltd. (KHUA) have signed a Letter of Intent (LoI) for the supply of Neopentyl Glycol (NPG) from BASF’s Zhanjiang Verbund site to KHUA. This agreement marks a significant milestone in the long-term partnership between both parties. Photo shows the signing ceremony. Front row, left to right: Haryono Lim, Senior Vice President, New Verbund Site China, BASF, Yao ChunHai, General Manager, KHUA, Back row, left to right: Vasilios Galanos, Senior Vice President, Intermediates Asia Pacific, BASF, Hong Tao, Vice Secretary and Vice Chief Commander of Joint Party Committee of Advanced Manufacturing Key Project Construction Taskforce by Zhanjiang Economic & Technological Development Zone (ZETDZ) and Fenyong High-tech Zone, Jeffrey Sun, Chairman, KHUA.
KHUA, a reputed manufacturer of saturated polyester resins for the powder coatings industry in China, is planning to build a 100 kilotons per annum (KT/a) production plant for high-end powder coatings resins in Donghai Island, Zhanjiang Economic & Technological Development Zone, where BASF is building a world-scale NPG plant with an annual production capacity of 80,000 metric tons.
Vasilios Galanos, Senior Vice President, Intermediates Asia Pacific, BASF, said, “We are pleased to strengthen our long-standing partnership with KHUA through co-location. We are confident that this strategic move will create synergies that benefit both parties, including enhanced collaboration and supply reliability, faster delivery, access to shared resources, and reduced costs. In addition, this partnership will help to meet the growing demand for eco-friendly powder coatings in China and the wider Asia Pacific region.”
“We have high hopes of BASF’s Zhanjiang Verbund site, which will set a new standard in the petrochemical industry by utilizing clean energy, conserving energy, and reducing emissions. Leveraging our competitive advantages, backed by the strategic partnership with BASF, one of the world’s leading NPG suppliers, as well as Zhanjiang’s unique geographical location, we are confident in the success of our 100KT/a powder coating resin expansion project. This will enable us to reduce VOCs and contribute to a sustainable future with clear blue skies and white clouds,” said Jeffrey Sun, Chairman, KHUA.
With the new NPG plant at the Zhjanjiang Verbund site expected to be available from Q4 2025, BASF’s global NPG capacity will be boosted from 255,000 metric tons to 335,000 metric tons annually, strengthening its position as one of the world’s leading NPG manufacturers. Upon completion, this will be BASF’s fifth NPG plant, following the ones in Ludwigshafen, Germany; Freeport, Texas, United States; as well as Nanjing and Jilin, China.
NPG is an intermediate mainly used in the production of powder coating resins, which are particularly successful for the coating of household appliances and in the construction industry. Due to their low volatile organic compounds (VOC), powder coatings enable their users to comply with VOC emission standards by reducing the release of VOCs by up to 50% compared to liquid coatings. Other applications for NPG include the manufacture of lubricants, plasticizers and pharmaceuticals.