BASF has signed a memorandum of cooperation with Chongqing Chemical and Pharmaceutical Holding and local authorities for the possible construction of a 400,000 tpa MDI plant in Chongqing municipality, western China. This project, upon approval, will be BASF's second Chinese plant to manufacture MDI, the polyurethane intermediate. BASF plans to carry out an in-depth evaluation of the competitiveness of the location.
BASF's first JV MDI plant is located at Caojing, near Shanghai and a capacity to produce 240,000 tpa MDI. The Caojing plant is a joint venture comprising BASF, Huntsman Chemical and three Chinese companies. MDI is a precursor in the manufacture of polyurethanes - used in the automotive and construction industries, in appliances such as refrigerators and in footwear.
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