BASF gets approval for new MDI facility in Chongqing, China

25 March 2011 07:04  [Source: ICIS news]

SINGAPORE (ICIS)--BASF has received governmental approval for a new 400,000 tonne/year methyl di-p-phenylene isocyanate (MDI) project at Chongqing in China, the German chemicals major said on Friday.

BASF’s new facility, an investment of around €860m ($1.21bn), will consist of an MDI plant, a nitrobenzene plant and an aniline plant, BASF said in a statement.

The MDI facility is expected to start up by 2014, the statement said.

MDI is a core component used in the production of polyurethane (PU) products.

“Chongqing is at the centre of a growing inland region,” said Martin Brudermuller, a member of BASF’s board of executive directors, responsible for the Asia-Pacific region.

“Investing here will give us access to what will be one of the biggest MDI markets in the world,” Brudermuller added.

BASF is also setting up a new PU solutions system house in Chongqing that will be fully integrated with the new MDI facility, BASF said.

The planned system house will have local production with sales, technical service and development personnel, it said.

BASF has another MDI facility at Caojing in Shanghai with a nameplate capacity of 240,000 tonnes/year. The plant is scheduled for an annual maintenance turnaround in May this year, according to ICIS data.

The company also has MDI production facilities at Antwerp in Belgium, Yeosu in South Korea and Louisiana in the US.

PU is used extensively for cooling as well as heat insulation applications and is the preferred material for keeping food and medications cold during production, distribution and storage, according to BASF.

($1 = €0.71)

For more on BASF, visit ICIS company intelligence

By: Nurluqman Suratman

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