Written on 04.05.2011 - Industry
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"Fit For The Future" – BMS invests in the US

Following a recovery in the fortunes of the polyurethanes industry in NAFTA during 2010, Bayer MaterialScience (BMS) announced plans to investment USD 120 million in their Baytown, TX, USA, plant. The Baytown site, which celebrates 40 years of manufacturing success this year, is the company’s largest manufacturing facility in the United States and is a keystone of BMS' global manufacturing strategy.

This announcement is good news for the North American polyurethane industry. Many participants have voiced concern over the lack of investment and continued rationalisation of capacity here. In particular customers in the flexible foam sector have expressed concern over the reliability of TDI supply with only two manufacturers remaining in the region. Until 2005, the United States was the largest market for polyurethane raw materials, since then China and the rest of Asia have dominated the industry's focus, leaving the US industry feeling like a poor relation.

"Our Baytown plant is a critical asset in the Bayer MaterialScience global portfolio," said Dr. Tony Van Osselaer, member of the Executive Committee of BMS and Head of Industrial Operations. "It is a first-rate manufacturing facility and these significant investments are our commitment to keeping it fit for the future."

The planned investment includes environmental upgrades, reliability improvements and minor debottlenecking of its 300 kt MDI plant as well as the introduction of improved process technology, environmental upgrades, and energy efficiency and reliability improvements that will increase productivity at the 220 kt TDI unit.

"These comprehensive upgrades will support the growth we are anticipating in the NAFTA region," said Greg Babe, President and CEO of Bayer Corporation and Bayer MaterialScience LLC.