Dow plans to increase MDI capacity at Texas by 50%.

31-Jan-07

The robust and steadily growing market for MDI (diphenylmethane diisocyanate), a major raw material used in the production of rigid polyurethane foam and polyurethane elastomers, merits further investment . Global market for MDI is estimated at 3.6 mln tons, with demand currently growing at 6-7% pa, which is expected to continue. The Dow Chemical Company has planned capacity expansion at its Freeport, Texas, MDI facility by 50% over the next three years. Expansion at the Freeport site will take place in two stages with the first half of increased capacity available in early 2008. On completion, the increase will account for an extra 110,000 tpa of name-plate capacity of MDI manufactured at the Freeport site. This decision follows an earlier announcement made by the company in September last year to expand MDI production at its Estarreja, Portugal site.