BASF has signed an agreement enabling it to look into Chongqing as a location for a new MDI (diphenylmethane diisocyanate) plant, as demand for the product grows.
After signing the agreement today with Chongqing Chemical and Pharmaceutical Holding and local authorities, BASF will now carry out an in-depth evaluation of the competitiveness of the location before it decides on a final location in China.
Jacques Delmoitiez, president of BASF’s Polyurethanes division, said: ‘The market for polyurethanes in China is expected to grow at double-digit rates and will become the largest in the world within the next decade.’
MDI is used in the manufacture of polyurethanes, a material used in the automotive and construction industries, as well as in footwear and refrigerators.
It is expected that the annual capacity of the plant will be 400,000 metric tons of crude MDI when the plant is in operation, which is scheduled for 2010.