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BASF mulls over construction of MDI plant in Chongqing

Jun '07
BASF is considering the construction of a new MDI (diphenylmethane diisocyanate) plant in Chongqing municipality, Western China, to meet growing demand for this product. A corresponding memorandum of cooperation was signed on June 12, 2007with Chongqing Chemical and Pharmaceutical Holding (Group) Company and local authorities.

BASF will now carry out an in-depth evaluation of the competitiveness of the location. The startup is planned from 2010 onward, and the plant is expected to have a capacity of 400,000 metric tons per year of crude MDI.

“The market for polyurethanes in China is expected to grow at double-digit rates and will become the largest in the world within the next decade,” said Jacques Delmoitiez, President of BASF's Polyurethanes division. “Following on from the investment in our Caojing MDI/TDI facility, we are moving closer to finalizing the location for our next major polyurethanes investment in China.”

BASF already announced in early 2006 that it was considering building another MDI plant in China with partners. The decision on BASF's additional joint venture partners has not yet been made, and the final choice of a site for the plant still hinges on a number of factors.

Chongqing is the largest and most populous of China's municipalities with around 32 million people. It is home to the biggest inland river port in Western China, located on the Yangtze River. It is also a twin city to Düsseldorf, Germany.

BASF isone of the largest foreign chemical investors in China, with sales of over €3.6 billion in 2006 and a workforce of more than 5,500 employees. By 2010, BASF aims to generate 10 percent of its global sales and earnings in its chemical businesses in China.

MDI is an important precursor in the manufacture of polyurethanes – versatile polymers that are used in the automotive and construction industries, in appliances such as refrigerators, and in footwear.


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