Bayer MaterialScience builds new production facilities in China

12-Oct-2004

With the construction of new production plants for polyurethane and coating raw materials near Shanghai, Bayer MaterialScience AG is all set to increase its long-term competitiveness in the growth market of China. Dr. Hagen Noerenberg, CEO of Bayer MaterialScience, got the two big projects under way in a symbolic ceremony in the presence of the Shanghai deputy mayor, Hu Yanzhao. By 2006, a production facility for the coating raw material hexamethylene diisocyanate (HDI) and a production plant and logistics facilities for the polyurethane raw material diphenylmethane diisocyanate (MDI) will be built in the Shanghai Chemical Industry Park in Caojing. Bayer MaterialScience is the number one market player for both isocyanate coating raw materials and polyurethane raw materials. The two projects represent a total investment of around US$ 200 million.

A sum of around US$ 3.1 billion has been earmarked for investment in the integrated production site of Caojing near Shanghai, of which Bayer has allocated US$ 1.8 billion for the construction of new facilities for polymer production. Work has already started on some of the projects. "The Chinese market is key for our global growth strategy," said Dr. Noerenberg in Caojing. "With these large local production facilities, we will be able to serve our regional customers even better. We are thus set to increase our long-term competitiveness in this key market."

The HDI project involves a total capacity of up to 50,000 t/a and an investment of around US$ 100 million. This will make Caojing the biggest Bayer production site for coating materials in Asia-Pacific. HDI is a precursor product for aliphatic polyisocyanates, which are used as raw materials in high-quality polyurethane-based coatings. Such systems are applied predominantly in automotive, industrial and plastics coatings. By 2006, a production capacity of 30,000 t/a HDI will initially be built, and, depending on how the market develops in the region, the capacity can then be extended by 20,000 t/a in a second construction phase.

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