Bayer signs new plant agreement

Bayer and Shanghai Chemical Industry Park Corporation have today signed an agreement to build a world-scale hexamethylene diisocyanate production plant in Caojing, China.

Bayer and Shanghai Chemical Industry Park Corporation have today signed an agreement to build a world-scale production plant for the coating raw material HDI (hexamethylene diisocyanate).

The HDI project involves a total capacity of up to 50,000 t/y and an investment of $100 million. Construction of the new facility is scheduled to begin in the autumn of 2004. HDI is a precursor for aliphatic polyisocyanates, which serve as raw materials for high-grade polyurethane coating systems that are used predominantly for automotive, industrial and plastics coatings.

According to Bayer, investments in the integrated production site at Caojing near Shanghai will total $3.1 billion. Of this, Bayer will spend $1.8 billion on new facilities for polymer production.

With the building of large capacities for polyisocyanates, Caojing will become the main production site for Bayer MaterialScience’s coating raw materials in the Asia-Pacific Region. Initial production capacity for the precursor HDI will reach 30,000 t/y by 2006. Capacity could be extended by a further 20,000 t/y as part of a second construction phase.

Since April 2003, coating raw materials in the Desmodur N range have been produced in a neighbouring plant that has an annual capacity of 11,500 t. At the end of 2004, a production facility for Desmodur L with a capacity of 11,000 t/y will also to go on stream.