BASF and Petronas Chemicals Group Berhad have announced a US$ 500 million (MYR 1.5 billion) investment in an integrated aroma ingredients project at their existing joint venture site BASF Petronas Chemicals in Gebeng, Kuantan.
With this investment, the partners will help meet the globally growing demands of customers in the flavour and fragrance industry, especially in Asia Pacific. At the heart of the complex will be a plant for citral and precursor plants. The partners will also invest in downstream production for aroma ingredients including a new world-scale plant for L-menthol and a plant for citronellol. Production will be developed in phases, with the first plants of the project operational in 2016, creating some 110 new employment opportunities. “This investment is built on the solid, longterm relationship with our strategic partner PCG. Since the establishment of our joint venture, BASF and PCG have successfully served the needs of the region with high-quality and innovative products,” said Dr Martin Brudermüller, vice chairman of the Board of Executive Directors of BASF SE, responsible for Asia Pacific. “With this strategic investment we are increasing our contribution to the aroma ingredients market to bring attractive fragrances and flavours to our daily lives. Embedding this investment into our Kuantan Verbund allows our customers to benefit from a global production network for their future growth plans in the Asia Pacific region,” said Saori Dubourg, president Asia Pacific BASF. Citral is nature-identical to the main component of many essential oils like lemongrass, and is used as fresh-citrus and fruity notes in fragrances and flavours. It is also used in the production of vitamins A and E and as precursor for aroma ingredients. Citronellol is used for a fresh, powerful, and long-lasting rose fragrance, and is an indispensable component for numerous fresh-floral compounds. The cool freshness of L-menthol makes it popular as an ingredient in oral care and body care.
