The first joint-venture project for the PU intermediate is still in construction

BASF and its partners in a new polyurethanes complex nearing completion in China are now looking at a further investment in the fast growing market. The group, comprising BASF, Huntsman Chemical and three Chinese companies, are investigating several sites for a 400,000tpa plant for the polyurethane intermediate MDI which would come on stream in 2010.

Jean-Pierre Dhanis, who heads BASF’s PU business, forecasts double digit growth for the material in China and says that the country will be the world’s largest PU market within ten years. “We want to participate in this dynamic growth and better serve our customers through local production,” he said in a statement.

The current isocyanates investment, costing $1bn (E813m), is under construction at Caojing, near Shanghai, and will have capacity of 240,000tpa of MDI and 160,000tpa of TDI. It is expected to begin commercial production this year.