BASF to exit BASF Markor and Markor Mei'ou

BASF announced on February 9 local time that it has started divesting its shares in BASF Markor Chemical Manufacturing (Xinjiang) Co., Ltd. and Markor Mei'ou Chemical (Xinjiang) Co., Ltd. since the fourth quarter of 2023. BASF assessed the market environment and product carbon footprint (PCF) of BDO and its downstream products in different production bases worldwide. The BDO value chain is facing increasing competitive pressure, characterized by global overcapacity. In addition, due to the high energy intensity of using coal as a raw material and the production process, the PCF of hard alloy BDO and polytetrahydrofuran produced in Korla is significantly higher. In the future, BASF will tailor its global BDO and its downstream product portfolio to provide competitive low-PCF products.

These two joint ventures were established by BASF and Xinjiang Markor Chemical in February 2014, with BASF Markor owned 51% by BASF and primarily producing PTMEG with an annual capacity of 50,000 tons, and Markor Mei'ou owned 51% by Markor Chemical and mainly producing BDO with an annual capacity of 100,000 tons.

BASF will accelerate the ongoing divestment process. A BASF spokesperson stated that it is currently not possible to predict when the sale will be completed but it will not change the company's China strategy or other businesses in the country.