BASF Signs Agreement with Tape Producer in China
BASF recently announced that it has signed a Letter of Intent (LoI) with Youyi Group that marks a step to further strengthen the strategic partnership between the two companies. The LoI focuses on the supply of butyl acrylate and 2-ethylhexyl acrylate from BASF’s Zhanjiang Verbund site to meet the growing demand in China’s adhesive materials industry.
Youyi, a leading producer specializing in BOPP tape and expanding into specialty tape, has established multiple production bases across China. The company is currently constructing a new plant in Guangdong for the production of BOPP films and tapes, while BASF is also building fully backward-integrated production facilities for butyl acrylate and 2-ethylhexyl acrylate at the Zhanjiang Verbund site. This collaboration aims to foster greater synergy and cooperation between the two companies in Guangdong.
"We are delighted to enter into this long-term strategic cooperation partnership with Youyi, which marks the first customer agreement to supply acrylates from the Zhanjiang Verbund site," said Haibo Tian, vice president, Industrial Petrochemicals Asia Pacific, BASF. "With the upcoming production startups of Youyi’s new production facility in Guangdong and BASF’s acrylic acid complex at our Zhanjiang Verbund site in 2025, we are confident that this agreement will create mutual benefits, ensuring competitiveness and reliability to support the growth of the adhesive tape industry."
"BASF has always been a vital partner for Youyi Group for over 30 years. The signing of this LoI will further enhance our strategic partnership and support our business expansion in the tape industry, particularly in South China,” said Lin Ke Bo, vice president, Youyi Group. “With BASF’s new facilities at the Zhanjiang Verbund site, BASF not only continues to supply high-quality and reliable products but also brings advanced concepts in site management and sustainability. We look forward to a close collaboration with BASF to achieve mutual success."
The acrylic acid complex at the Zhanjiang Verbund site is planned to come on stream by 2025 with an annual production capacity of approximately 400,000 metric tons of butyl acrylate and 100,000 metric tons of 2-ethylhexyl acrylate. Butyl acrylate, an ester of acrylic acid, is used in the production of adhesives and in architectural and industrial coatings. 2-ethylhexyl acrylate is an important raw material for adhesives and coatings. The Zhanjiang Verbund site utilizes the latest technologies and renewable energy sources to reduce CO2 emissions compared to standard gas-powered petrochemical sites, aligning with both companies' commitment to environmental responsibility.
The Zhanjiang Verbund site is reported to be BASF’s largest investment to date with around €10 billion upon completion. It will be operated under the sole responsibility of BASF and will be the company’s third-largest Verbund site worldwide, following Ludwigshafen, Germany, and Antwerp, Belgium.
Learn more about BASF at www.basf.com.
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