Market Dynamics
Huntsman, BASF, Shanghai Hua Yi, Shanghai Chlor-Alkali Chemical Co. Ltd. and SINOPEC Group Assets Management Corporation Plan New MDI Plant in Shanghai
Time: 2014-07-02 Source from: Huntsman
Huntsman Corporation (NYSE:HUN), BASF, Shanghai Hua Yi (Group) Company, Shanghai Chlor-Alkali Chemical Co. Ltd. and SINOPEC Group Assets Management Corporation plan to build a new plant to produce 240,000 metric tons of crude MDI (diphenylmethane diisocyanate) per year at Shanghai Lianheng Isocyanate Co. Ltd. (SLIC) in Caojing, China. With the new plant, the crude MDI capacity at this site will be doubled to 480,000 metric tons per year. In addition, the partners plan to build an HCl (hydrogen chloride) recycling plant for the production of chlorine, a precursor for MDI. The facility is expected to start up 2017.
MDI is an important precursor in the manufacture of polyurethanes – versatile polymers that are used in industries like construction, automotive, appliance, and footwear.
"The new crude MDI plant will further strengthen our ability to provide our customers in the region with high quality, locally manufactured products. It signals our confidence in the long term prosperity of what is now the single largest market in the world as well as our commitment to serve the growing needs of our customers," said Peter Huntsman, President and Chief Executive Officer of Huntsman.
The new plant, at the Shanghai Chemical Industry Park (SCIP) in Caojing, will be adjacent to the existing integrated isocyanates complex. This will enable the utilization and full access to raw materials and energy.
Shanghai Lianheng Isocyanate Co. Ltd. (SLIC) has a production capacity of 240,000 metric tons of crude MDI per year and includes manufacturing facilities for the precursors aniline and nitrobenzene built by Huntsman, BASF, Shanghai Hua Y i (Group) Company, Shanghai Chlor-Alkali Chemical Co. Ltd. and SINOPEC Shanghai Gaoqiao Company. Commercial production started in 2006.