· Partners will combine strengths in material innovation to better serve customers in China and overseas

· Agreement builds on long-term relationship between BASF and INOV, China’s leading producer of propylene oxide (PO), downstream derivatives of ethylene oxide (EO), and polyurethane

BASF and Shandong INOV Polyurethane Co., Ltd. (INOV) today signed a framework agreement of strategic partnership to serve the increasing demand from various industries in China and overseas. The two companies will work together in the areas of raw material supply, market expansion, research and development for sustainable products, improved quality of operation and environmental protection, health and safety (EHS).

The two partners’ business relationship stretches back over a decade. Under the agreement, both partners will increase the production capacities of raw materials, including diphenylmethane diisocyanate (MDI), toluene diisocyanate (TDI), and polytetrahydrofuran (PolyTHF^®). Along with the raw material supply, the agreement will also strengthen cooperation to develop construction materials and performance materials, further supporting the development of strategic industries.

MDI and TDI are important components for polyurethanes – an extremely versatile plastics material that contributes towards improved insulation, and thus energy saving in buildings, and provides lighter materials for cars. PolyTHF is a key raw material used to produce spandex and polyurethane elastomers.

Headquartered in Zibo in East China’s Shandong province, INOV is China’s leading producer of propylene oxide (PO), downstream derivatives of ethylene oxide (EO), and polyurethane. “This is a win-win strategy which combines BASF’s proven research capabilities with our expertise in production. We are looking forward to working with BASF to produce high-quality chemical products for local and overseas customers along the value chain,” said Xu Jun, Chairman and General Manager of INOV. “We will also benefit from each other’s  quality operation and EHS practices through the partnership.”

“At BASF, we have been collaborating with our customers on the development of  sustainable solutions for various industries in China. We measure the value proposition of our products along the entire value chain and strive to continuously increase our positive contribution to society,” said Dr. Stephan Kothrade, President and Chairman, Greater China, BASF. “I am glad that INOV also shares this vision with us. That brings us together to meet customers’ increasing needs for advanced materials in various industrial sectors.”