BASF Antwerp Expansion to Create World’s Largest MDI Plant

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Researched by Industrial Info Resources (Sugar Land, Texas). BASF’s (Frankfurt:BAS) (Ludwigshafen, Germany) expansion plans at its Antwerp, Belgium site continues unabated. The latest plan to expand the existing diphenylmethane diisocyanate (MDI) facility will make the plant the largest of its type in the world. The expansion of the two-train plant is planned for the second quarter of 2007 when the current 450,000 tons per annum will be increased to 560,000 tons per annum (tpa).

The company has also planned for the construction of two more plants at the Antwerp site for the MDI feedstocks. These will be a 180,000 tpa aniline plant and a 280,000 tpa mononitrobenzene plant. These plants are scheduled to start operations simultaneously with the MDI expansion.

The global market for MDI is growing and will be sustained at 6% per annum with the strongest demand growth coming from Asia. The increased global demand for MDI and the expansions will see BASF strengthening its position as a leading and reliable producer of polyurethane basic products and systems.

Antwerp is the sole European site at which the company produces MDI and was chosen for the expansion program as its location makes it an important platform to serve customers in Europe, the Middle East, Africa and Latin America. BASF also has MDI production plants Louisiana, Korea and China. MDI is an important feedstock for the manufacturing of polyurethanes. These versatile polymers are used in many applications such as the automotive and construction industries, white goods appliances and for upholstery and footwear. MDI-based insulating materials are used in energy saving applications.

Earlier this year, BASF announced plans for the expansion of its naphtha steam cracker at the Antwerp site. This expansion is scheduled during the next regular turnaround of the plant in the third quarter of 2007 to avoid additional shutdowns. An investment of $260 million will raise ethylene capacity from 800,000 tpa to 1.08 million tpa, which will make the plant the largest single train steam cracker in Europe. As no major new cracker projects are planned for Europe until at least 2009, the additional ethylene volumes will fit into a market with an average projected growth of 1 to 1.5% per annum.

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