BASF pays 8 billion yuan to build the world's largest MDI project

BASF, the world's largest chemical industry leader, won a big order. The reporter learned yesterday that BASF's annual output of 400,000 tons of MDI (diphenylmethane diisocyanate) project has been approved, and the total investment will reach 8 billion yuan. This world's largest MDI project will mainly produce core raw materials for polyurethane foam, which is expected to begin operation in 2014.

According to relevant persons from the BASF Group, after strict environmental, health and safety standards review, two rounds of local public consultation and several expert assessments, the project has finally been officially approved by relevant Chinese government departments. The project covers an area of ​​40 hectares and consists of an MDI production facility, a nitrobenzene production facility, and an aniline production facility. It will become the core part of the integrated chemical production complex within the Chongqing (Changshou) Chemical Industry Park.

“Chongqing is located in the development center of inland areas. Investing in Chongqing will help BASF to enter into one of the world’s largest MDI markets in the future.” said Bian Le, member of the executive board of BASF Europe, which is responsible for Asia Pacific operations.

In addition to MDI's comprehensive production facilities, BASF will also establish a new polyurethane solution assembly plant in Chongqing to meet the growing market demand for important industries such as construction, home appliances, transportation and footwear.

Due to its location close to the Three Gorges Reservoir, the project had caused fierce disputes among environmentalists. However, BASF officials stated that BASF will implement a comprehensive water safety protection system, “Level 3 Water Protection”, and BASF's water near sensitive waters such as Ludwigshafen on the Rhine in Germany and Antwerp on the River Scheldt in Belgium. Similar protective measures.


All along, the project has been hailed as the single largest scale MDI project in the world, and this approval also means that China's MDI market will usher in a heavyweight competitor. After the project is put into production in the future, the domestic MDI production capacity will greatly increase and the competition will become more intense. The market share of Yantai Wanhua, the only MDI producer of the A-shares, will have a great impact.

According to statistics, the current annual production capacity of MDI in Europe is 2.396 million tons, ranking first in the world. However, the MDI in Mainland China has developed at a very rapid rate. Statistics show that by 2016, the total production capacity of MDI in mainland China will reach 402 million tons or more, and this figure will far exceed that of Europe.

MDI is the core raw material of polyurethane products with a wide range of applications. Polyurethane products are widely used in thermal insulation, and are the preferred materials for low-temperature production, transportation and storage of foods or pharmaceuticals. BASF, the world's largest chemical industry leader, won a big order.

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