BASF is increasing its annual production capacity for the chemical intermediate propionic acid at its sites in Ludwigshafen and Nanjing by 30,000 metric tons and 9,000 metric tons, respectively. Production in Nanjing is ensured by BASF YPC Co. Ltd., a joint venture owned by BASF and the China Petroleum & Chemical Corporation (Sinopec Corp.).

Once the expansion of the two production facilities is completed - in Nanjing and in Ludwigshafen by mid-2009 — BASF will have the capacity to make 149,000 metric tons of propionic acid each year.

"Propionic acid is a strategic product for us and BASF is a leading supplier. With this investment, we intend to keep responding to our customers'' growing demand in a sustainable manner," said Dr. Walter Gramlich, President of BASF''s Intermediates Division. The major application of propionic acid is feedgrain preservation. The organic acid is also widely used in the production of vitamin E as well as pharmaceutical active ingredients, crop protection agents, solvents, food preservatives and plastics.

An eco-efficiency analysis performed by BASF has shown that feedgrain preservation based on propionic acid offers clear economic and ecological benefits over other methods, such as drying or storage in airtight silos. BASF markets propionic acid-based preservatives under the trade names Lupro-Grain and Luprosil.

chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. BASF''s intermediates division develops, produces and markets the world''s largest range of intermediates. The most important of the division''s more than 600 products include amines, diols, polyalcohols, acids and specialties.