BASF, Huntsman and their Chinese partners—Shanghai Huayi Holding Group Co., Ltd. (hereinafter referred to as: Shanghai Huayi), Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. (hereinafter referred to as Name: Takahashi Petrochemical) and Shanghai Chlor-Alkali Chemical Co., Ltd. (hereinafter referred to as: Shanghai Chlor-Alkali Chemical)—announced the splitting of the joint venture MDI (diphenylmethane diisocyanate) production plant. In the future, the two companies will independently operate the MDI factory in Caojing, Shanghai. Huntsman and Shanghai Chlor-Alkali Chemicals, BASF and Shanghai Huayi and Gaoqiao Petrochemical will each take over an MDI plant.
Dr. Ramkumar Dhruva, President of BASF's Monomer Business Unit, said: "As one of the initial enterprises settled in the Shanghai Chemical Industry Zone, Shanghai Lianheng is an important partner for us to establish MDI production in China. After the split, the new organizational structure will enable BASF to further develop our MDI business in Shanghai with our partners Shanghai Huayi and Takahashi Petrochemical, while serving customers in the region more effectively.”
"Having produced crude MDI through Shanghai Lianheng for nearly two decades, Huntsman and its partner Shanghai Chlor-Alkali Chemicals have successfully established a polyurethane business in China. As we integrate these assets into our downstream business Together, we will better meet our customers' future innovation and growth needs," said Tony Hankins, president of Huntsman's Polyurethanes business unit.
Huntsman and Shanghai Chlor-Alkali Chemicals will jointly own and operate the MDI plant that started commercial production in 2006 and the new hydrogen chloride recovery for the production of chlorine (one of the precursors of MDI) in 2018 device. BASF will own and operate the new MDI plant added in 2018, including production units for the precursors aniline and nitrobenzene. All employees currently working in Shanghai Lianheng will transfer to their new organizations.
The new organizational structure is still under preparation and is expected to take effect in the fourth quarter of 2023, depending on regulatory approvals, licenses and other routine conditions.
In addition to the Caojing plant in Shanghai, BASF also has MDI production bases in Chongqing, China, Yeosu, Korea, Antwerp, Belgium, and Geismar, Louisiana, USA. After the reorganization of Shanghai Lianheng, BASF's global MDI production capacity will reach about 1.9 million tons.
In addition to the Shanghai Caojing plant, Huntsman also has world-scale MDI production and distillation units in Rotterdam, the Netherlands and Geismar, the United States.
MDI is an important precursor for the manufacture of polyurethane, a multipurpose polymer widely used in industries such as automobiles, construction, home appliances (mainly refrigerators and other appliances), and footwear
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