Bayer Prepares to Relocate Texas Hydrazine Unit to China in 2005

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Lanxess Corporation, a subsidiary of Bayer AG (Leverkusen, Germany), has ceased production at its hydrazine hydrate chemical unit, located in Baytown, Texas, and is preparing to begin dismantlement of the unit in January of 2005. Lanxess plans to reassemble the unit in China, as part of a grassroot chemical plant that it will jointly own and operate with Weifang Yaxing Chemical Company, Limited (Weifang, China).

J.E. Merit (Houston, Texas) has been selected to complete the dismantlement here in Texas and coordinate its cartage to China, with arrival expected early next year. Once complete in the Fall 2005, the unit and its new plant are planned to begin commercial operation during the first quarter of 2006, and produce an estimated 14,000 metric tons per year of hydrazine product. The new China plant is anticipated to become one of the largest operating hydrazine plants in the world.

Although Bayer has mothballed, shuttered, or dismantled multiple process units in the Baytown complex over the past several years including polyols, thionyl chloride, utility boilers, and others, the Baytown site has been a focus for major capital projects in recent years. Industrialinfo.com has reported over $1.9 billion in total capital and maintenance spending since it first began tracking project activity at the Baytown plant site in August of 1985.

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