BASF has broken ground on a methyl glycols (MG) plant at its Verbund site in Zhanjiang, China. The new facility is designed with an annual capacity of 46,000 metric tons and aims to meet the rapidly growing demand for brake fluids in the region. The plant is scheduled to commence operations by the end of 2025.

The new methyl glycols plant will produce methyl diglycol (MDG), methyl triglycol (MTG), and methyl tetraglycol (MTEG) from methanol and purified ethylene oxide (PEO). Methyl triglycol is the primary raw material for the production of modern brake fluids used in the automotive industry.

The new facility will be the only fully backward integrated methyl glycols plant into a steam cracker in China, serving the fast-growing brake fluids market. Utilizing BASF’s unique process technology, the plant will deliver reliable, competitive and high-quality products to cater to the needs of our downstream business and customers.

—,Bir Darbar Mehta, Senior Vice President, Petrochemicals Asia Pacific, BASF

Backward integration refers to a situation in which a company controls its supply chain by owning or controlling its suppliers or the facilities involved in the earlier stages of production. In this case, the steam cracker will be producing the ethylene.