Huntsman proceeds with China MDI project, even without partner

05 May 2011 19:13  [Source: ICIS news]

HOUSTON (ICIS)--Huntsman is proceeding with plans for a methyl di-p-phenylene isocyanate (MDI) expansion project near Shanghai - even without a partner and although Chinese authorities have yet to approve the project, CEO Peter Huntsman said on Thursday.

“We fully believe we continue to be on track to expand that facility - that is our priority, with or without a partner there,” Huntsman told analysts during the company's first-quarter results conference call. 

The CEO also said that China’s regulators have not yet approved Huntsman’s plans.

“I do believe that [the approval] is coming,” he said, but he would not speculate when that will be.

“I wish I had more control over the Chinese regulatory process… but I am confident that we will see more MDI capacity from Huntsman coming into the Chinese market,” he said.

China is already running short of MDI, and the supply squeeze would become worse in the next two or three years, he added.

Huntsman did not comment on capacity details for the planned expansion at Caojing near Shanghai.

As reported earlier by ICIS, the company plans to build a second 240,000 tonne/year MDI plant in Caojing.

Last month, BASF started construction of its newly approved MDI complex at Chongqing, China.

For more on Huntsman, BASF and other producers visit ICIS company intelligence

By: Stefan Baumgarten
+1 713 525 2653

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