Bayer MaterialScience AG plans to boost toluene diisocyanate (TDI) capacity in Shanghai from 160,000 to 300,000 tons, at a total investment outlay of US$1.8 billion by 2009. The approval procedures for expanding capacity have already been initiated. The integrated Shanghai site is intended to become a central base in Bayer MaterialScience's production network in the Asia-Pacific region. Part of the production capacity is targeted to supply the fast-growing markets in Eastern Europe and the Middle East until new capacities are in place.
Bayer MaterialScience expects its newly developed TDI process technology to cut investment costs by some 20% compared with conventional processes. The process - known as gas phase phosgenation - has already been successfully trialed in a company pilot plant with an annual capacity of 30,000 tons.
The TDI plant in Shanghai forms part of Bayer MaterialScience's long-term investment planning aimed at efficient expansion of its international production network to cover rising demand. The company expects consumption of TDI to grow by around 4% pa, driven mainly by continued strong demand for upholstered furniture, mattresses and car seats.
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