BASF starts building MDI complex in Chongqing

SHANGHAI (ICIS)-- BASF has started building its newly approved methyl di-p-phenylene isocyanate (MDI) complex at Changshou Economic and Technological Development Zone in Chongqing, the German chemical giant said on Tuesday.

The Chinese government gave its approval in late March 2011, four years after BASF and Chongqing signed a Memorandum of Understanding for the complex.

A groundbreaking ceremony was held in Chongqing on 11 April, according to a statement issued from the company.

BASF’s new facility has a total investment of yuan (CNY) 8bn ($1.22bn) and will consist of a 400,000 tonne/year MDI plant, a nitrobenzene plant and an aniline plant, the company had said earlier.

The capacities of the nitrobenzene plant and the aniline plant is 400,000 tonnes/year and 300,000 tonnes/year respectively, said an official from the development zone.

The MDI facility is expected to start up by 2014, BASF earlier said.

BASF has another MDI facility at Caojing in Shanghai with a nameplate capacity of 240,000 tonnes/year, according to ICIS data.

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

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

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.

Additional reporting by Dolly Wu and Nurluqman Suratman

($1 = CNY6.54, $1 = €0.69)

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