Huntsman shelves work on Netherlands-based MDI plant

11-Feb-09

Huntsman Corporation has shelved the work on design and feasibility studies for the newly planned 400,000 metric tons methylene diphenyl diisocyanate (MDI) plant at its site in Rozenburg, the Netherlands. According to a company release, the existing production capacity is adequate to meet current demand for MDI-based polyurethanes following the downturn in global economic growth. Meanwhile, the company has said that it will assess strategic options for the construction of a second MDI unit in China as planned. "We fully expect to see MDI growth return to historical levels as the global economy and consumer demand recover. However, we believe it prudent to suspend the timetable for this major investment until we have greater visibility on how long this will take. We plan to review market conditions on a regular basis, and when we do restart the project, we will likely benefit from lower engineering and construction costs, as the price of commodities such as steel and other construction materials decline," said Polyurethanes Division President, Tony Hankins. Huntsman Polyurethanes is a leading global producer of MDI, a key ingredient in the production of polyurethanes.