August 19, 2020
Others
BASF Idemitsu Co., Ltd. announces termination of joint venture agreement and withdrawal from petrochemicals 14-butanediol business
Idemitsu Kosan Co.,Ltd., Ltd. (headquarters: Chiyoda-ku, Tokyo; hereinafter "Idemitsu") announces that it has decided to terminate the joint venture agreement with BASF SE (headquarters: Ludwigshafen, Germany; hereinafter "BASF") to manufacture and sell petrochemicals 1,4-butanediol (hereinafter "BDO") through BASF Idemitsu Co., Ltd. (BASF 67% Idemitsu 33%, hereinafter "BIC") and to withdraw from the BDO business.
BDO is an organic compound used as a raw material for stretch fibers and engineering plastics. In recent years, the business environment has deteriorated due to a decline in domestic demand and an oversupply caused by new and expanded facilities in Asia. After considering our future policy, we have determined that it will be difficult to continue our business.
BIC's manufacturing facility (25,000 tons/year) at our Chiba Complex will be shut down in December 2020, after which the joint venture agreement will be terminated. BIC's BDO business will be taken over by the BASF Group, and the company will continue to supply to existing customers.
[Overview of BIC]
| （1） | Name | BASF Idemitsu Co., Ltd. |
| （2） | Location | 3-4-4 Nihonbashi Muromachi, Chuo-ku, Tokyo OVOL Nihonbashi Building 3rd floor |
| （3） | Representative | Representative Director and President Dai Saito |
| （4） | Investment ratio | BASF 67%, Idemitsu Kosan Co.,Ltd. 33% |
| （5） | Business Description | Manufacture and sale of 1,4-butanediol |
| （6） | Production capacity | 25,000 tons/year Chiba Complex |
Regarding news release
contact information
Idemitsu Kosan Co.,Ltd. Public Relations Department, Public Relations Division