Page 155 - CW E-Magazine (20-2-2024)

News from Abroad

DIVESTMENT
BASF exiting Xinjiang JVs on human rights concerns

and higher carbon footprints

German chemicals giant BASF has footprint of the 1,4-butanediol (BDO)
announced that it will divest its stake in produced at the facilities, which uses
its two joint ventures (JVs) in Xinjiang, coal as a base raw material and a source
after media reports about alleged “gross of energy. The company said the exer-
abuse” of Uyghurs by employees of the cise is part of its move to customise its
JVs – BASF Markor Chemical Manu- global portfolio of BDO and affiliated
facturing and Markor Meiou Chemical – downstream products to provide “com-
both based in Korla. petitive low-PCF (product carbon foot-
print) offerings.”
Uyghurs – a mostly Muslim, Turkic-
speaking ethnic group – live in China’s context of the public reports, BASF has “As part of BASF’s global stra-
northwestern province of Xinjiang and no indication that employees of the two tegy for 1,4-butanediol (BDO), BASF
western media reports, have over the joint ventures in Korla were involved has assessed the market environment
past, reported numerous human rights in human rights violations. The most and PCFs of BDO and its downstream
violations perpetrated by the Chinese recent reports relate to BASF’s joint products from different production
Government on the group. venture partner, in which BASF does sites worldwide. BDO value chains are
not have a stake,” it concluded. under increased competitive pressure
In a statement, BASF said that and characterised by global overcapac-
while “regular due diligence measures Earlier, a group of politicians from ities. Furthermore, carbide-based BDO
including internal and external audits around the world urged BASF to with- and polytetrahydrofuran produced in
have not found any evidence of human draw from Xinjiang following recent Korla have a significantly higher PCF
rights violations in the two JVs,” the reports in German media that people due to the use of coal as a base raw
recent reports “indicate activities employed by the JVs accompanied material and the high energy intensity
inconsistent with BASF’s values.” Chinese state officials in 2018 and 2019 of the production process,” a company
on home visits to Uyghur households statement explained.
“Consequently, BASF will acce- as part of a government initiative that
lerate the ongoing process to divest human rights groups have said is used In the statement announcing the
its shares in the two joint ventures in to spy on people and indoctrinate them. divesting, BASF noted that its presence
Korla, subject to negotiations and required in China, which accounts for around
approvals of the relevant authorities. BASF frontloaded the announce- half of the world’s chemical produc-
It is important to note that, also in the ment with concerns about the carbon tion, ‘remains otherwise unchanged’.
Carrier Process Equipment Group acquires Kinergy

US-based process machinery manu- ply greater value to our customers seek-
facturing firm, Carrier Process Equip- ing a single-source provider for their
ment Group (CPEG), has completed process machinery needs. Customers
the acquisition of Kinergy Corpo- can rely on our extensive engineering
ration, a US-based manufacturer of resources and integration capabilities.”
custom-engineered vibrating equipment.
This new acquisition adds complemen- Kinergy provides vibrating equip-
tary products to CPEG’s extensive bulk ment solutions including conveyors,
material handling and processing line. the critical food, speciality chemicals, feeders, bin activators, and screeners.
minerals and recycling markets,” said Its products are used extensively in the
“The acquisition of Kinergy Mr. Doug Schieber, President and CEO food, chemical, foundry, mining, and
strengthens our leadership position in of CPEG. “This furthers our aim to sup- recycling industries.

Chemical Weekly February 20, 2024 155

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