Bayer is investing in the production of polyurethane
coating raw materials in the People's Republic of China. New
large-scale production facilities, to be built in the Shanghai area at
a cost of US$ 110 million, will further strengthen the Group's global
leadership position in the fast-growing market for coating raw
materials. Construction is scheduled to begin in spring 2001. The
business license for its wholly foreign-owned enterprise 'Bayer
Coatings Systems Shanghai Company Limited' was recently
The first phase of construction will create 11,500 tons per year of
capacities for TDI- and HDI-based polyisocyanates, due to become
operational in 2003, with expansion to 20,000 tons planned for the
medium term. The capital expenditures for this first phase will
amount to US$ 50 million.
The second phase will involve the construction of production
facilities for the HDI precursor, at an additional cost of US$ 60
million, to complement a 30,000 tons-a-year HDI plant already
being built in Leverkusen and due on stream in 2002.
These investment plans are Bayer's response to the continuing rapid
increase in global demand for the raw materials used in
high-performance polyurethane coatings. By establishing a strong
manufacturing base in the People's Republic, Bayer is meeting the
need for production facilities located close to the market. China is
now one of the principal growth markets for coatings in Asia. Bayer
also produces coating raw materials at facilities in Europe, North
America, South America and Japan. The rise in world demand for
coating polyisocyanates has been brought about by increasing
quality requirements in applications such as automotive finishing,
plastics coating, and wood and furniture finishing.
To support its market activities in the fields of coating raw
materials, polyurethanes and plastics, Bayer will open a technical
service center for polymers in Shanghai in mid-2001. The center
will have the Bayer Group's worldwide expertise at its disposal,
enabling it to provide optimum back-up to local customers.