Nov 12 2003
BASF, Huntsman and Chinese partners including Shanghai Hua Yi Co, Sinopec Shanghai Gao Qiao Petrochemical Corp and Shanghai Chloro-Alkali Co. have had plans for expanded capacity at their planned integrated isocyanates facility approved by Chinese authorities. The expansion will see production of crude MDI (diphenylmethane diisocyanate) increase from 160,000 to 240,000 metric tons per year and TDI (toluene diisocyanate) from 130,000 to 160,000 metric tons per year.
The new plant will be located at the Shanghai Chemical Industry Park, with construction to begin by the end of the year. The total project is valued at approximately $1 billion, with production scheduled to commence in 2006.
Crude MDI and TDI from the plant will be supplied to Bayer, with details of the supply contract still being negotiated.
MDI and TDI are important precursors used in the manufacture of polyurethanes which are used in a range of applications from automotive and construction to domestic and footwear.
Polyurethane consumption in China is expected to grow at 10% per year over the next 12 years. This will make it the largest market in the world by 2015. The construction of this plant positions project partners strategically to take advantage of this market in the future.
For more information on polyurethanes, click here.