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BASF to Build New PAG Plant in Ludwigshafen

May 26, 2014

BASF announced the construction of a new plant for polyalkylene glycol (PAG)-based lubricants at its Ludwigshafen site. The manufacturing facility will start operations by the beginning of 2016 and produce PAG lubricant base stocks and formulated blends.

With this double-digit million euro investment BASF continues to support the global growth of synthetic lubricant formulators who use these BASF products in their final formulated lubricants. Through the integration in BASF’s largest Verbund site in Ludwigshafen, Germany, the new production unit will have full backward integration into all key raw materials including ethylene oxide and propylene oxide.

The new facility will increase security of supply for BASF’s customers in the lubricant industry. “With the new plant we are consequently following our strategic path as a world-class leading supplier for synthetic lubricant solutions,” said Martin Widmann, Senior Vice President of BASF’s business unit Fuel and Lubricant Solutions. “The investment represents another significant step for us as well as our customers.”

PAG base stocks are used, for example, in finished lubricants for gear oils or compressor oils as well as in metalworking applications or fire-resistant hydraulic fluids.