(Yicai Global) Sept. 22 -- German chemicals giant BASF announced today that it has doubled the production capacity of neopentylglycol, a unique chemical material used in powder coatings, at its joint venture plant in the eastern Chinese city of Nanjing.

With the completion of its expansion in August, the plant’s annual capacity will reach 80,000 metric tons, according to a statement on BASF’s website. Run by BASF-YPC, a 50-50 JV with China Petroleum and Chemical, better known as Sinopec, the plant was set up in 2015 with an annual capacity of 40,000 metric tons. 

NPG is a polyalcohol that offers superior performance in many end-use applications, especially in the production of polyester and alkyd resins for coatings and plastics. A key application is powder coatings, which are particularly effective in the construction industry, as well as in the coating of household appliances, BASF said.

“The new expansion marks another milestone in the long-standing partnership between Sinopec and BASF,” said Stephan Kothrade, president and chairman for BASF in China. “It reinforces our commitment to enhance local production and respond to the growing needs of Chinese customers for environment-friendly powder coatings.”

China is BASF’s biggest market after Germany and the United States. Last year, it has sales of EUR7.3 billion (USD8.4 billion) in the Asian country.