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BASF Petronas Cuts BDO Production, Enters Venture With Toray

Citing unfavorable market conditions, BASF Petronas Chemicals Sdn Bhd - a 60/40 joint venture between Germany-based BASF AG and Petroliam Nasional Berhad (Petronas), Malaysia - has begun operating its 1,4-butanediol plant in Kuantan, Malaysia, below capacity.

"Both BASF and Petronas are firmly committed to the success of this joint venture," said John Fastier, managing director, BASF Petronas. "The ability to react to market conditions in a flexible and effective way is an important prerogative for this success."

In related news, BASF Petronas recently entered into a 50/50 joint venture with Toray Industries Inc., Tokyo, for the manufacture of polybutylene terephthalate (PBT) base resin. Toray BASF PBT Resin Sdn Bhd will build a facility with an annual capacity of 60,000 metric tons in Kuantan. The plant is expected to be operational by 2006.

May 2004