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Huntsman to raise MDI production capacity at Rozenburg site
26
Feb '08
Huntsman Corporation announced that it has commenced design and feasibility studies to increase its global capacity for the manufacture of methylene diphenyl diisocyanate (MDI) through investment in a new, world scale MDI plant at its site in Rozenburg, the Netherlands.

Feasibility studies, including preliminary engineering for the new unit, are now underway and a final investment decision is expected during 2008, with the new 400,000 metric tons capacity unit coming on-stream by mid-2011. The final plan may also incorporate the closure of older, less efficient capacity in Europe.

Pursuant to the studies, Huntsman also intends to expand its MDI and downstream asset capacity in all three major regions through the deployment of new proprietary technologies in aniline, methylene dianiline (MDA) and MDI production, which will both increase raw material yields and improve energy efficiency by up to 40%, as compared with previous generation technology.

Huntsman announced in early 2006 that it was evaluating the construction of a second MDI unit in China, with its partners from the existing 240,000 metric tons capacity joint venture MDI plant in Caojing, Shanghai. Studies for this new plant continue, with a number of different locations being considered.

"These investments are required to satisfy the sustained demand growth that we're seeing across a wide range of MDI based applications , said Polyurethanes Division President, Tony Hankins.

We anticipate that during the next decade the global MDI market will continue to grow well ahead of global GDP, at around 7-8 % per year - and in Asia well above 10%.

We are determined to maintain our leading position in MDI, and to ensure that we can continue to support our global customers as their markets grow."

Huntsman Corporation

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