BASF and International Process Plants (IPP), a New Jersey-based marketer of plant sites and process equipment, announced on May 6 that they have entered into an agreement for IPP to market ammonia, methanol, and melamine plants located at BASF’s Verbund site in Ludwigshafen, Germany.
The agreement includes integrated production assets for ammonia (380,000 mt/y), methanol (165,000 mt/y), and melamine (51,000 mt/y), which IPP is offering for relocation and sale to qualified buyers. Financial terms of the deal were not disclosed.
“We are excited to add these world-class ammonia, methanol, and melamine plants to our portfolio of excellent plants for relocation. These facilities represent a significant opportunity for companies seeking to expand their production capacity with existing assets that operate at a high level of energy and raw material efficiency,” said Ronald Gale, IPP President.
“IPP is committed to finding a new home for these assets in a location with sufficient and economic gas supply or as part of a green ammonia or methanol project where they can continue to operate efficiently and productively,” Gale added.
The plants, which were in operation through 2023, have become available as BASF implements structural measures at its Ludwigshafen site to ensure competitiveness in the European market. BASF said it will continue to produce ammonia and methanol in other assets at Ludwigshafen.
“BASF is partnering with IPP on the divestment of the idled ammonia, methanol, and melamine plants to ensure that these well-maintained assets are sustained for chemical production,” said Ruediger von Watzdorf, Senior Vice President Technology, BASF Monomers division. “The sale represents a more sustainable and economic approach to the deployment of these production units, and with a net benefit to the global process industry.”
IPP has offices in 14 countries. Its current holdings include 17 complete plant sites, 110 plants for relocation, and 15,000 equipment process systems and major pieces of equipment.