Huntsman begins work on 400,000 tonne/year Louisiana MDI expansion

LONDON (ICIS)–Huntsman has commenced preliminary engineering to expand methyl di-p-phenylene isocyanate (MDI) production capacity at its Geismar, Louisiana, plant, building on a 50,000 tonne/year expansion due on stream next year, the US-headquartered chemicals company said on Monday.

Capitalising on growing US shale gas supplies, the 400,000 tonne/year expansion is expected to come on stream in 2018, the company added. In the shorter term, the 50,000 tonne/year expansion will increase total MDI capacity at the site to 500,000 tonnes year, Huntsman said.

“Shale gas has significantly improved the economics of investing in US facilities and has helped our Geismar facility to establish a strong cost leadership position. The planned additional capacity will reinforce this position and establish the plant as a truly global supplier,” said Huntsman polyurethanes president Anthony Hankins.

The company estimates total global demand growth for the material, which is used in the construction, automotive, coatings and footwear markets, at 8% per year.