On August 18th, a major integrated isocyanate project, jointly developed by BASF, Huntsman, Shanghai Huayi (Group) Co., Sinopec Shanghai Gaoqiao Petrochemical Company, and Shanghai Chlor-Alkali Chemical Co., Ltd., officially commenced operations. The facility now produces 2.4 million tons of crude diphenylmethane diisocyanate (MDI) and 160,000 tons of toluene diisocyanate (TDI) annually. This milestone marks a significant step forward in meeting China’s growing demand for polyurethane raw materials.
The project, which cost $1 billion in total, is structured with 30% ownership by Chinese partners and 70% by foreign investors. It comprises three joint ventures: Shanghai Lianheng Isocyanate Co., Ltd. operates a 240,000-ton-per-year MDI production unit, including facilities for aniline and nitrobenzene. This is managed by a consortium of BASF, Huntsman, Shanghai Huayi, Sinopec Gaoqiao, and Shanghai Chlor-Alkali. Another venture, Shanghai BASF Polyurethanes Co., Ltd., handles MDI finishing and a 160,000-ton TDI plant, along with the production of nitric acid and dinitrotoluene. Lastly, Shanghai Huntsman Polyurethanes Co., Ltd. runs an MDI finishing and prepolymer plant, in collaboration with Shanghai Chlor-Alkali.
With domestic polyurethane consumption already surpassing 2 million tons, the market is expected to grow at an annual rate of 10% over the next decade, driving increased demand for MDI and TDI. In recent years, other players like Yantai Wanhua and Bayer have also expanded their capacities in China. For instance, Wanhua’s 160,000-ton MDI plant in Ningbo became operational, while Bayer announced plans to build an integrated isocyanate base in Shanghai, with 350,000 tons of MDI capacity expected by 2008. Additionally, BASF plans to launch a 400,000-ton MDI plant by 2010, further solidifying its presence in the region.
This new facility not only strengthens China’s position in the global chemical industry but also supports the development of downstream sectors such as automotive, construction, and consumer goods. By ensuring a stable supply of high-quality raw materials, it contributes to sustainable growth and industrial innovation in the country.
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