July 31, BASF and 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 Gaoqiao Petrochemical) and Shanghai Chlor-Alkali Chemical Co., Ltd. (hereinafter referred to as Shanghai Chlor-Alkali Chemical)—— announce the split of Shanghai Lianheng Isocyanate Co., Ltd. (SLIC, hereinafter: Shanghai Lianheng) Joint venture MDI (diphenylmethane diisocyanate) production plant.
According to the joint press release, in the future, BASF and Huntsman will independently operate the MDI plant in Caojing, Shanghai.
Huntsman and Shanghai Chlor-Alkali Chemicals: will jointly own and operate the MDI plant that began 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, Shanghai Huayi and Gaoqiao Petrochemical: will take over the new MDI plant in 2018, including the production units of precursor aniline and nitrobenzene. All employees of Shanghai Lianheng will transfer to their respective new organizations, and the new organizational structure is expected to take effect in the fourth quarter of 2023, subject to regulatory approvals, permits and other routine conditions.
Shanghai Lianheng
Shanghai Lianheng Isocyanate Co., Ltd. (SLIC) is jointly invested by Huntsman China Investment Co., Ltd., BASF Corporation, Shanghai Chlor-Alkali, Sinopec Shanghai Gaoqiao Petrochemical and Shanghai Huayi Group. 15%, 7% and 8%.
Shanghai Lianheng Phase I MDI: The initial construction scale of the project is 240,000 tons/year of crude MDI (diphenylmethane diisocyanate), supporting upstream raw materials of 240,000 tons/year of nitrobenzene and 18 tons of aniline The crude MDI products produced are all supplied to Huntsman and BASF for refining. The first phase of the project passed the environmental inspection and acceptance in February 2008, and realized normal production. Then, as the downstream demand for crude MDI continues to increase, the factory has remodeled the device. By increasing the production capacity per unit time and shortening the annual inspection time, the annual production time has been extended, that is, from the annual production capacity of 240,000 tons/year, gradually It was raised to 350,000 tons/year. In September 2017, the 350,000 tons/year crude MDI expansion project passed the acceptance and has been in operation so far. The first phase of the project adopts the process technology of Huntsman Company. After the spin-off, the first phase of 350,000 tons/year crude MDI production capacity will be operated by Huntsman.
Shanghai Lianheng Phase II MDI: The initial construction scale of the project is 240,000 tons/year of crude MDI. The project was proposed by Huntsman in 2009, and one set will be expanded in the reserved area of the existing plant site The 240,000-ton/year crude MDI production and refining unit started construction in 2014, completed construction at the end of 2017, and went into operation in the first quarter of 2018. All crude MDI products produced by the second-phase unit are supplied to Huntsman’s second-phase refining device. After the spin-off, the second phase of 240,000 tons/year crude MDI production capacity will be operated by BASF.
BASF
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 This will enable BASF, together with our partners Shanghai Huayi and Gaoqiao Petrochemical, to further develop our MDI business in Shanghai while serving customers in the region more effectively.”
After the spin-off is completed, BASF’s global production capacity will increase to 1.9 million tons per year. In addition, the increase in crude MDI production capacity will provide more raw materials for the 90,000-ton MDI refining project under construction to be put into production.
The Huntsman
Tony Hankins, President of Huntsman’s Polyurethane Business Unit, said, “Having produced crude MDI through Shanghai Lianheng for nearly two decades, Huntsman and its partner Shanghai Chlor-Alkali Chemical have successfully established a polyurethane business in China. As we integrate these assets into our downstream business, we will better meet our customers’ future innovation and growth needs.”
After the spin-off is completed, Huntsman’s crude MDI production capacity in China will be changed to 350,000 tons per year. Although the crude MDI production capacity is slightly reduced, it will have little impact on Huntsman’s actual output. Huntsman will Continue to derivate and infiltrate its special grades in downstream application fields.
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