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Huntsman suspends work on planned MDI plant in Rozenburg
Feb '09
Huntsman Corporation announced it has suspended work on design and feasibility studies for its planned investment in a new methylene diphenyl diisocyanate (MDI) plant at its site in Rozenburg, the Netherlands, because existing production capacity is adequate to meet current demand for MDI-based polyurethanes following the downturn in global economic growth.

The design and feasibility studies, which include preliminary engineering for the planned 400,000 metric tons capacity unit, will be halted at a stage to allow quick and efficient re-engagement at a future date. Until such time, all third party work on the project will be suspended.

"We fully expect to see MDI growth return to historical levels as the global economy and consumer demand recover. However, we believe it prudent to suspend the timetable for this major investment until we have greater visibility on how long this will take.

We plan to review market conditions on a regular basis, and when we do restart the project, we will likely benefit from lower engineering and construction costs, as the price of commodities such as steel and other construction materials decline," said Polyurethanes Division President, Tony Hankins.

He added: "The decision to suspend work on the new plant in Rozenburg does not affect our intention to further strengthen our position as a leading player in the polyurethanes industry."

In the meantime, Huntsman's internal evaluation of strategic options for the construction of a second MDI unit in China will continue, with a number of different options under consideration.

Huntsman Polyurethanes is a leading global producer of MDI, a key ingredient in the production of polyurethanes and also produces flexible and rigid polyethers, polyesters, polyether amines, polyurea amines, propylene oxide, polyols, fully formulated polyurethane systems and TPUs for the automotive, footwear, coatings & adhesives, construction, furniture, appliances and packaging industries.

Huntsman Corporation

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