BASF said Thursday it is increasing production of vinylformamide (VFA) at its German and Chinese sites in an attempt to meet growing global demand in the paper industry.
Under the plan, BASF will increase the capacity of existing VFA and polymerization plants in Ludwigshafen, Germany. It will also build a new polymerization plant in China that will further process the feedstock from Ludwigshafen.
These projects will require investments in the "three-digit million euro" range, the company said, adding production is expected to start by end-2014.
BASF did not disclose other details, including existing and expected production.
VFA is feedstock for water soluble polymers which are widely used in the paper industry to increase the efficiency of the production process.
"Growth [in demand] is expected in Europe and the Americas, where paper makers are under enormous pressure to reduce their cost of operations as well as in Asia, which we consider the growth engine of paper production and demand," said Uwe Liebelt, president of BASF's Paper Chemicals division.
