BASF Withdraws Again, CNPC Takes Over!

Recently, BASF Jihua Neopentyl Glycol Co., Ltd. underwent a business registration change, with the original shareholders BASF (China) Co., Ltd. and BASF SE withdrawing, and its registered capital reduced from RMB 150 million to RMB 60 million.China National Petroleum Corporation became the company's sole shareholder, achieving full ownership and control.

The company was established in November 1995, with Chen Jianjun as its legal representative. Its business scope includes the manufacturing of basic chemical raw materials (excluding the manufacturing of licensed chemicals such as hazardous chemicals), the manufacturing of specialty chemical products (excluding hazardous chemicals), and the sales of specialty chemical products (excluding hazardous chemicals).

The equity transfer procedures were completed on June 17. The previously subscribed capital contribution of RMB 15 million by BASF (China) and RMB 75 million by BASF SE was fully transferred, and CNPC assumed the entire equity interest with a subscribed capital contribution of RMB 60 million.

BASF Jihua was a landmark project for foreign-invested chemical companies entering Northeast China in the 1990s. It was established in 1995 as a joint venture between BASF Group and Jilin Chemical Industrial Co., Ltd. After Jihua was later integrated into the PetroChina system, the two sides continued to jointly operate the neopentyl glycol production line over the long term. The venture also served as a key platform for BASF’s early expansion into the chemical market in northern China.

During the partnership, BASF held a 60% stake in the company. The plant was officially commissioned in 1998, and at its peak had an annual production capacity of 35,000 tons. It was once among the largest neopentyl glycol producers in China and had long supplied key raw materials to the domestic coatings industry chain.

As of now,BASF has not yet released an official statement regarding this equity exit.From the overall layout of the enterprise in China, BASF has not reduced its overall investment in the Chinese market. The integrated base in Zhanjiang, Guangdong, has been fully put into operation, and the company continues to increase investment in high-end business sectors such as new energy materials, environmental chemicals, and agricultural chemicals. This withdrawal is merely an optimization adjustment of traditional basic chemical joint venture assets.

Industry analysts said that this equity change is a normal asset structure optimization move between a multinational chemical company and a domestic central state-owned energy enterprise. It not only conforms to the objective law of corporate strategic adjustments amid the global chemical industry cycle, but also helps promote capacity integration in China’s basic chemical industry and the localization and upgrading of the industrial chain.

Going forward, this neopentyl glycol producer is expected to leverage PetroChina’s upstream raw material supply advantage to maintain a stable and reliable market supply, further strengthening the security of the domestic raw material supply chain for the coatings and fine chemicals industries.

Core Applications: Powder Coatings and Various Resins

This is the main downstream application of neopentyl glycol, and its unique chemical structure imparts excellent weather resistance, chemical corrosion resistance, and stability to materials.

Powder Coating Polyester Resin: This is the largest application market for neopentyl glycol. Powder coatings made from it are widely used for surface spraying of appliances, aluminum profiles, outdoor building materials, and automotive parts. With the strengthening of environmental regulations on high-VOC coatings, the demand for eco-friendly powder coatings continues to grow.

Unsaturated polyester resin (UPR): used in the manufacture of wind turbine blades, automotive parts, fiberglass-reinforced plastics, etc.

Saturated polyester resin: used for producing electronic materials such as copper-clad laminate substrates.

Polyurethane (PU) materials: used for the production of soft foams, elastomers, and various coatings.

Alkyd resins, epoxy resins, and acrylic resins: Used as modifiers to enhance the performance of these traditional resins.

Emerging and High-Growth Applications: PETG and Specialty Materials

Neopentyl glycol is also a key raw material for the production of high-performance specialty materials, and market demand is growing rapidly.

PETG material: This is a transparent, durable 3D printing material and engineering plastic. Driven by demand from 3D printing and related applications, it has become one of the fastest-growing downstream sectors for neopentyl glycol.

Poly(neopentyl glycol terephthalate): used to manufacture automotive parts and high-strength fibers.

Other Important Applications

Synthetic lubricants and greases: used for producing aviation lubricants, hydraulic oils, etc.

Plasticizer: used to improve the flexibility of plastics.

Pharmaceutical and pesticide intermediates: for example, used in the production of drugs such as ibuprofen.

Other fine chemicals: their derivatives can also be used to produce fragrances, flame retardants, inks, surfactants, insulating materials, and more.