German Industrial Giant Bayer Plans to Build a New Polyurethane Dispersion Facility in Shanghai

---

Researched by Industrial Info Resources (Sugar Land, Texas). Bayer Material Science (Shanghai, China), one of the four major business units under German industrial giant Bayer (Leverkusen, Germany) and also one of the world's largest producers of polymers and high-performance plastics, plans to build a new polyurethane dispersion facility on its Integrated Polymers Site at Shanghai Chemical Industry Park.

This new facility has a designed annual production capacity of 20,000 tons and is expected to be put into operation during the second quarter of 2008.

The company will also double its annual production capacity for the aromatic polyisocyanate Desmodur L to reach 20,500 tons during the second half of 2007. Annual production capacity for aromatic grades of the Desmodur IL product line will also be doubled to 5,500 tons by the end of 2007. Production of aliphatic polyisocyanates of the Desmodur N series will be expanded at the start of 2008.

The new plant and these two expansion measures are part of a comprehensive Bayer investment program at its integrated Shanghai site, with a total investment of $2.422 billion by 2012. Bayer has a plan of building this integrated Shanghai site into its most important coating and adhesive raw materials production site in the Asia-Pacific region.

Bayer has long been a player in Chinese market ever since 1882. The establishment of the independent trading entity Bayer China Company, Limited in Hong Kong in 1958 lent Bayer an opportunity to intensify its activities in Greater China. In 1986, Bayer established a representative office and a liaison office in Beijing and Shanghai. Bayer (China) Limited was established in 1987 in Beijing as a holding company to coordinate technology transfer and market development as well as support the preparation and implementation of joint venture projects.

Bayer's Integrated Polymers Site at the Shanghai Chemical Industry Park started construction in 2001 marking that Bayer's investment strategy in China entered a new phase. Businesses of Bayer (China) Limited mainly concentrate on three areas – healthcare products, pharmacies and chemicals.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.