BASF and Chinese chemical maker Highsun Holding Group have agreed to explore a joint venture that would combine their European activities for nylon 6 polymers and precursors, according to Chemical & Engineering News.
BASF makes nylon 6 and its raw material caprolactam at Antwerp, Belgium, and Ludwigshafen, Germany. In recent years BASF has cut caprolactam capacity in Ludwigshafen because of competitive pressures, including new capacity from China.
Highsun describes itself as the largest caprolactam producer in the world. It bought Netherlands-based caprolactam maker Fibrant in 2018.
BASF and Highsun said their respective engineering polymers businesses would not be within the scope of the combination. The scope is limited to nylon 6 polymers and precursors.
The exploration comes as European producers of commodity and intermediate chemicals increasingly seek partnerships or consolidation to compete with lower-cost Asian supply.
