China to build new Shanghai MDI plant with BASF, Huntsman

SINGAPORE (ICIS)–China will have a new 240,000 tonne/year crude methyl diphenylmethane diisocyanate (MDI) plant in Shanghai that will be jointly built by five companies, including Germany’s BASF and US’ Huntsman, the two foreign partners said on Tuesday.

The three Chinese partners are Shanghai Hua Yi (Group) Co, Shanghai Chlor-Akali Chemical Co and Sinopec Group Assets Management Corp, BASF and Huntsman said in a statement.

Construction of the facility kicked off on Tuesday at Caojing, with plant start-up scheduled in 2017, they said.

Financial details of the project were not disclosed.

The project is still subject to further approval from the Chinese Ministry of Commerce.

MDI is an important precursor in the manufacture of polyurethanes – versatile polymers that are used in industries like construction, automotive, appliance, and footwear.

The five partners further plan to build an hydrogen chloride (HCl) recycling plant for the production of chlorine, a precursor for MDI, BASF and Huntsman said.

The crude MDI plant will be operated by Shanghai Lianheng Isocyanate Co Ltd (SLIC), which has an existing 240,000 tonne/year MDI plant at the site.

SLIC is jointly owned by BASF, Huntsman, Sinopec Shanghai Gaoqiao Co, Shanghai Huayi Group and Shanghai Chloro-Soda Chemical.

“Asia Pacific remains an important growth and investment region for BASF, with the fast growing Chinese market being a major focus,” BASF vice chairman for Asia Pacific Martin Brudermuller said in the statement.

“Polyurethanes are among the most versatile materials existing to address sustainability issues across numerous applications such as the automotive or construction industries,” he said.