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Released July 16, 2014 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--A group of chemical producers announced plans this month for a 240,000-metric-ton-per-year crude diphenylmethane diisocyanate (MDI) plant in Shanghai, China, but that project isn't the only one in the works. Industrial Info is tracking 16 MDI grassroot, expansion and conversion projects across the globe, with a combined investment value of about $5.5 billion.
MDI is a precursor used in the manufacture of polyurethanes for industries including automotive, construction, footwear, insulation, bedding, furniture, adhesives, coatings, and elastomers. As such, demand for MDI is strong in regions with growing economies, such as the Asia Pacific, the location of seven (six in China and one in Korea) of the MDI grassroot and expansion projects being tracked by Industrial Info.
BASF (Ludwigshafen, Germany), Huntsman (NYSE:HUN) (The Woodlands, Texas) , Shanghai Hua Yi (Group) Company (Shanghai), Shanghai Chlor-Alkali Chemical Company Limited (Shanghai) and SINOPEC Group Assets Management Corporation (Beijing) held a ceremony on July 1, marking the start of the 240,000-metric-ton-per-day MDI project at the Shanghai Chemical Industry Park (SCIP) in Caojing. The project will double the site's annual MDI capacity to 480,000 metric tons, according to BASF. Project completion is expected in the second quarter of 2017.
"Asia Pacific remains an important growth and investment region for BASF, with the fast-growing Chinese market being a major focus," according to a press statement by Martin Brudermuller, vice chairman of BASF's Board of Executive Directors, responsible for Asia Pacific. The project is subject to further approval of the Chinese Ministry of Commerce, according to BASF.
Huntsman and Shanghai Chlor-Alkali Chemical Co. plan to use the plant's output to double the MDI splitting capacity to 480,000 metric tons per year at their joint venture company in Shanghai , producing differentiated, custom- made products for downstream markets, Huntsman said in a press statement. Total investment value is $157 million.
View Plant Profile - 3009768
View Project Report - 300015672
North America comes in second in MDI expansions and grassroots plants, with four such projects. Bayer MaterialScience's (Leverkusen, Germany) MDI and polyurethanes expansion project at its site in Baytown, Texas, is under evaluation.
View Plant Profile - 1516293
View Project Report - 300055463
The project, with a total investment value of $2 billion, would include construction of a polyurethanes unit, plus a 300,000-metric-ton-per-year MDI expansion and a 300,000-metric-ton-per-year aniline (an MDI precursor) expansion, through a series of retrofits and debottlenecks during a four-year period. The estimated construction kick-off is in second-quarter 2016, with completion in second-quarter 2020.
Bayer MaterialScience continues with a site study and expects to receive approval in the fourth quarter of this year. Bayer announced in March the acquisition of DuPont's aniline production facility, which is located within Bayer's Baytown plant, for an undisclosed price.
"North America is poised for strong MDI growth, driven by recovery in the construction market, energy code advancement and home comfort trends," according to a press statement by Craig Caputo, vice president of polyurethanes and regional product manager for Bayer MaterialScience.
A U.S. MDI project that is well under way is the expansion of the Rubicon facility in Geismar, Louisiana. The project, with a total investment value of $78 million, will increase the capacity of the 320,000 ton-per-year MDI plant by at least 12%. Civil construction kicked-off in the fourth quarter of 2013, with completion tentatively estimated for first-quarter 2015. Rubicon is a joint venture between Huntsman and Chemtura (Middlebury, Connecticut).
View Plant Profile - 1018193
View Project Report - 300088027
Other MDI-related projects are located in Germany, Russia and Saudi Arabia.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
MDI is a precursor used in the manufacture of polyurethanes for industries including automotive, construction, footwear, insulation, bedding, furniture, adhesives, coatings, and elastomers. As such, demand for MDI is strong in regions with growing economies, such as the Asia Pacific, the location of seven (six in China and one in Korea) of the MDI grassroot and expansion projects being tracked by Industrial Info.
BASF (Ludwigshafen, Germany), Huntsman (NYSE:HUN) (The Woodlands, Texas) , Shanghai Hua Yi (Group) Company (Shanghai), Shanghai Chlor-Alkali Chemical Company Limited (Shanghai) and SINOPEC Group Assets Management Corporation (Beijing) held a ceremony on July 1, marking the start of the 240,000-metric-ton-per-day MDI project at the Shanghai Chemical Industry Park (SCIP) in Caojing. The project will double the site's annual MDI capacity to 480,000 metric tons, according to BASF. Project completion is expected in the second quarter of 2017.
"Asia Pacific remains an important growth and investment region for BASF, with the fast-growing Chinese market being a major focus," according to a press statement by Martin Brudermuller, vice chairman of BASF's Board of Executive Directors, responsible for Asia Pacific. The project is subject to further approval of the Chinese Ministry of Commerce, according to BASF.
Huntsman and Shanghai Chlor-Alkali Chemical Co. plan to use the plant's output to double the MDI splitting capacity to 480,000 metric tons per year at their joint venture company in Shanghai , producing differentiated, custom- made products for downstream markets, Huntsman said in a press statement. Total investment value is $157 million.
View Plant Profile - 3009768
View Project Report - 300015672
North America comes in second in MDI expansions and grassroots plants, with four such projects. Bayer MaterialScience's (Leverkusen, Germany) MDI and polyurethanes expansion project at its site in Baytown, Texas, is under evaluation.
View Plant Profile - 1516293
View Project Report - 300055463
The project, with a total investment value of $2 billion, would include construction of a polyurethanes unit, plus a 300,000-metric-ton-per-year MDI expansion and a 300,000-metric-ton-per-year aniline (an MDI precursor) expansion, through a series of retrofits and debottlenecks during a four-year period. The estimated construction kick-off is in second-quarter 2016, with completion in second-quarter 2020.
Bayer MaterialScience continues with a site study and expects to receive approval in the fourth quarter of this year. Bayer announced in March the acquisition of DuPont's aniline production facility, which is located within Bayer's Baytown plant, for an undisclosed price.
"North America is poised for strong MDI growth, driven by recovery in the construction market, energy code advancement and home comfort trends," according to a press statement by Craig Caputo, vice president of polyurethanes and regional product manager for Bayer MaterialScience.
A U.S. MDI project that is well under way is the expansion of the Rubicon facility in Geismar, Louisiana. The project, with a total investment value of $78 million, will increase the capacity of the 320,000 ton-per-year MDI plant by at least 12%. Civil construction kicked-off in the fourth quarter of 2013, with completion tentatively estimated for first-quarter 2015. Rubicon is a joint venture between Huntsman and Chemtura (Middlebury, Connecticut).
View Plant Profile - 1018193
View Project Report - 300088027
Other MDI-related projects are located in Germany, Russia and Saudi Arabia.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
