A World-class MDI Plant to Be Put up in Shanghai

A world-class MDI plant, the largest of its kind in China with an annual production capacity to reach 160,000 tons will be put up in Shanghai Caojing Chemical Industry Park.

Co-invested by American Huntsman Group, German BASF Group and Shanghai Tianyuan Company, the establishment of the plant will cost hundred million US dollars. With the approval of the State Development Planning Commission, the plant will be brought to completion by 2004. It is going to be one of the four large MDI factories in the world, and also the largest one in Asia. The MDI is a kind of very important chemical material, mainly used for the production of polyurethane, which is a renowned bright "star" in applied chemical industry. Known as a substance of high intensity, good for erosion-proof and compression resistance, which can be used to replace the timber and steel, it has been widely used in such industries as foaming sole, heat insulation layer for refrigerator, auto seat cushion, steering wheel, mattress and sofa, composite wood products, as well as outer-board of buildings. For the time being, most of the MDI providers are from Europe or America, and the MDI in Chinese market depends mainly on imports.

China is the largest manufacturer of shoes, refrigerators and iceboxes in the world, and the production of auto, furniture and building material is also on the swing. In the past five year, the demand for MDI in the global market increased by 9 % annually, while that in China was 13 %. Last year China's demand for MDI was 120,000 tons, and the world 2 million tons. In the coming five years, China will overtake Japan, becoming the largest MDI market in Asia. The establishment of the plant can help China save 250 million US dollars every year for the importation of the MDI material. Having purchased polyurethane and titanium dioxide business of British ICI since the setting-up of its China Branch in Shanghai last year, The American Huntsman, the largest private chemical company in the world, established the MDI plant jointly with the German BASF group in Shanghai, and now it has a further plan to build a titanium carbon dioxide plant there. Jon M. Huntsman, chairman of the Huntsman board of directors said that all these we have done is because we have confidence in China, which is in the core of the Huntsman's global strategy.

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