YEOSU, South Korea—Kumho Mitsui Chemical plans to increase its MDI production in Yeosu by 200,000 metric tons per year by 2023, according to a statement by JV partner Mitsui.
The $36 million expansion will boost production at the site to 610,000 tons per year and should be on stream by the start of 2024.
The MDI market is set to grow at 6 percent a year, Mitsui said.
"(This is because of) policy measures around the globe to improve residential insulation ... as well as heightened demand accompanying economic growth," the company said.
The additional capacity go toward NVH components for electric vehicles and construction insulation products. It fits with Kumho Mitsui Chemical's plans to become a global leader for MDI, the company said.
"(We will) pursue expansion of the MDI business, which is projected for continued growth, and improving the performance of MDI products," it said.
Mitsui also will establish recycling facilities to reuse the by-products created during manufacturing, reducing wastewater and greenhouse gas emissions.
Kumho Mitsui Chemicals is a 50-50 joint venture founded in 1989 between Kumho and Mitsui.