BASF, Huntsman hike capacities of planned isocyanate plants in China

SHANGHAI, China (Nov. 12)—BASF A.G. and Huntsman Polyurethanes are raising the planned capacities of their Chinese isocyanate plants as Bayer A.G. has emerged as an interested customer. Construction of the factories should begin by year-end with production to come on stream by 2006, according to statements issued by the two firms. Specifically, the annual capacity of the crude methylene diphenyl diisocyanate facility to be built by Huntsman, BASF and their Chinese partners will be increased to 240,000 metric tons from 160,000, while the capacity of BASF's toluene diisocyanate plant will be raised to 160,000 tons from 130,000. Negotiations about the details of the supply contracts to Bayer are ongoing, the statement added. PU consumption in China in the coming 12 years is expected to grow about 10 percent a year, making China the single largest market in the world by 2015, said Jean-Pierre Dhanis, president of BASF's Polyurethanes division. The total cost for the whole complex is about $1 billion, according to Huntsman and BASF.