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PASADENA, Texas, and FLORHAM PARK, N.J., - March 21, 2005 - Jobwerx News - A series of projects by BASF will restructure its plasticizer business through new facilities at its Pasadena, Texas, site. BASF acquired the site from Sunoco in January 2004 in a deal that included the phthalic anhydride and oxo alcohol manufacturing plants, and the phthalate esters, 2-ethyl hexanol and phthalic anhydride businesses. Since the acquisition, BASF has also purchased land adjacent to the site previously owned by Enron.

The investment includes building a new esters plant and converting an existing 2-ethyl hexanol (2-EH) production unit to produce 2-propyl heptanol (2-PH). The projects are part of a North American initiative to strengthen BASF's plasticizers business. Plasticizers are specialized esters that give flexibility to rigid vinyl and other plastics used in construction products such as siding, flooring and roofing, and in wires and cables, medical equipment and many consumer products.

The new DPHP plasticizer to be produced at Pasadena provides virtually identical performance to compounds created using conventional plasticizers, while offering superior performance in exterior applications such as roofing.

The company will construct a 125,000 tons-per-year ester facility at Pasadena targeted to start-up parallel with the 2-PH conversion during the second half of 2006. The company will convert the existing 125,000 tons-per-year 2-ethyl hexanol (2-EH) production unit at Pasadena to produce 120,000 tons-per-year of 2-propyl heptanol (2-PH). To partially offset this change, 2-EH capacity at BASF's Freeport, Texas, site has been increased by 40,000 tons to 120,000 tons.

BASF will continue an existing manufacturing and marketing agreement with Sterling Chemical for the manufacture of phthalic anhydride (PA), oxo alcohols and plasticizer esters. In addition, the company will maintain its specialty plasticizer manufacturing site in Cornwall, Ontario and source other plasticizers through a tolling agreement with Sunoco until the end of 2006. These steps, together with the new esters capacity at Pasadena, will give BASF a comprehensive plasticizer esters manufacturing network in North America.

While no new jobs are planned as a result of the projects, the company expects that as many as 200 construction jobs will be required at the peak of the new plant's construction.


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