BASF and Hannong Chemicals are to establish a joint venture for the commercial production of non-ionic surfactants in the Asia-Pacific region.
The German firm will hold 51% and Hannong Chemicals 49% of the shareholding in the proposed BASF Hannong Chemicals Solutions joint venture, which will be located in the Daejuk site at the Daesan Industrial Complex in South Korea.
The joint venture will combine BASF’s technology and product innovation capabilities with Hannong’s production capabilities to supply non-ionic surfactant products to BASF and Hannong Chemicals, each with their own sales and distribution network, enabling the two companies to cater for increasing market demand.
Both companies are striving to receive statutory approvals as soon as possible, and target to establish the joint venture in the first quarter of 2023.
Non-ionic surfactants are used in a wide range of industry segments, including home care, personal care, industrial and institutional cleaning applications as well as various industrial formulations segments.
They are employed in formulations for laundry detergents, surface cleaners and dishwasher detergents, as well as for leather and textile treatment, metal surface cleaning, and others.
“BASF is delighted to partner with Hannong Chemicals. With this proposed joint venture, BASF continues to establish the capability to further serve the Asian market, by offering specialty non-ionic surfactants and a reliable supply experience to our customers,” said Ralph Schweens, President, Care Chemicals, BASF.
Kim, Eung Sang, CEO of Hannong Chemicals, added: “It is an honour to work with BASF, a leading solution provider to the consumer industries. Together, BASF and Hannong Chemicals will further enhance the joint venture’s position in the non-ionic surfactants market and provide top-tier products to customers in Asia.”