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Large Medium SmallChina Petroleum and Chemical Corporation signed a Memorandum of Understanding with chemical company BASF on July 31 to cooperate in building a world-scale iso-nonanol (INA) plant in the Maoming Hi-tech Industrial Development Zone in Guangdong province.
INA is used as the feedstock for the production of next generation plasticizers, which are expected to be in big demand in China in the future.
According to Sinopec, there is no INA production facility in China so all domestic consumption depends on imports.
China imported 318,600 metric tons of INA in 2011, mainly from Germany and Singapore.
Under the memorandum, the two parties will evaluate the technical, commercial and economic viability of jointly owning and operating a world-scale facility for the production of INA under a 50-50 joint venture agreement.
The final scope of the investment will be determined by the end of 2012.
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