Bayer strengthens its polyurethanes activities

05-Dec-2003

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With the dedication of a world-scale production facility for the intermediate product TDA, the Bayer Group has strengthened its polyurethanes business on a lasting basis. A total of some 200 million euros has been invested in the Dormagen project, and, with a capacity of 200,000 tons a year, the plant is the biggest of its kind in the world. TDA - the abbreviation stands for Toluene diamine - is a starting product for toluene diisocyanate (TDI), which is an important raw material for the production of polyurethane foams. Bayer is the world market leader in this segment.

In the last five years Bayer has invested almost one billion euros in the Dormagen site alone. "The new production plant for TDA is Bayer's biggest single investment in Germany this year. It will play an important role in the further development of our Bayer MaterialScience subgroup, because we intend to build on our leading position in the growing global polyurethanes market," said Werner Wenning, Chairman of the Board of Management of Bayer AG. He emphasized that Bayer was continuing to stand by Germany, and particularly North Rhine-Westphalia, as a production location but, he said, "It is becoming increasingly difficult for industry to maintain this commitment."

Wenning criticized the planned introduction of a new water supply surcharge law in North Rhine Westphalia, which would result in extra expenditures of 7 to 8 million euros a year for Bayer alone. This not only makes the international competitive situation worse than it is already, he said, but, "because the legislation will apply only to the state of North Rhine-Westphalia, the higher production costs will also disadvantage the entire state as a possible location for industrial production, in particular the chemical industry with its water- and energy-intense sites, in comparison with other German states."

He said he was also very concerned about a new motion put forward by the parliamentary parties of the SPD and Alliance 90/The Greens with regard to chemicals policy, as it goes even further than the demands of the European Union. "Since 2001, constructive dialogue has been taking place in Germany between the Federal German government, the Association of the Chemical Industry and the Mining, Chemical and Energy Industrial Union about what demands should be made on a new chemicals policy. The basis for the dialogue was a joint definition of a sustainable chemicals policy in which ecological, economic and social aspects are given equal consideration," said Wenning.

Building on the number one position in polyurethanes

About 20 percent of the total investment for the new TDA plant was spent on environmental protection measures. The production facility is operated by Bayer MaterialScience, the company in which Bayer will merge the innovation and technology-driven segments of its polymers business with the specialties companies, H.C. Starck and Wolff Walsrode. Bayer MaterialScience is due to become an independent legal entity at the end of the year, and from then on will be a joint stock company within the Bayer Group.

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