25 November 2003 11:30 [Source: ICIS news]
LONDON (CNI)--BASF said Tuesday it plans to increase amino glues and resins capacity for the European woodworking industry at its Ludwigshafen, Germany site.
A spokesman for the German chemicals giant told CNI that about Euro10m ($12m) would be invested on a new production line and further process optimisation to boost capacity by 250 000 tonne/year by the end of 2004.
BASF said in a statement that the capacity expansion is needed to meet future demand mainly for melamine-based glues and impregnating resins. Producers of medium-density fibreboard (MDF) and oriented strand board (OSB) are among the major customers for these products.
The spokesman for BASF explained that only part of Ludwigshafen's overall amino glues and resins capacity is directed towards the woodworking industry. Output also serves customers in the paints, varnishes, textiles and paper industries.
He said that once the new production line was fully installed, total annual capacity for amino glues and resins for all market segments would be around 1m tonne.
BASF explained that a precondition for the planned increase in amino glues and resins capacity was an expansion of formaldehyde capacity at its two existing worldscale plants in Ludwigshafen. Overall capacity has recently been boosted by 50 000 tonne/year to about 520 000 tonne/year through process optimisation.
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