Written on 22.03.2013 - Industry
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Huntsman invests USD 135 million in US and European MDI manufacturing plants

Huntsman announced a combined investment of USD 135 million at two of its world-scale methylene diphenyl diisocyanate (MDI) manufacturing facilities: increasing capacity at its Geismar, LA, USA, site and upgrading its downstream specialities production capability at its Rotterdam, the Netherlands, site.

The Geismar capacity will be increased by 50 kt/y to 500 kt/y using improved process technology developed by Huntsman. The expansion will enable the company to support the growth of its key customers and leverages the advantages of the Geismar site, with its access to US shale gas, strong logistics base and integration. The new capacity is expected to come on-stream in 2014.

Aerial view of the port of Rotterdam. (Picture source: Port of Rotterdam Authority [Havenbedrijf Rotterdam N. V.])

At its Rotterdam facility, the company is commissioning a new MDI splitter and downstream specialities manufacturing unit which will enable Huntsman to serve customers with a full range of differentiated polyurethane products for automotive, adhesives, coatings and other applications. The unit is designed to handle globally sourced MDI precursor and will be operational by the end of March 2013.

Anthony P. Hankins, President of Huntsman Polyurethanes, said: “The Geismar investment enables us to strengthen our upstream cost leadership position, while the Rotterdam investment gives us greater flexibility to provide downstream, customised products. The benefits of US shale gas have significantly improved the economics of investing in US facilities and Huntsman has a number of other investments planned which will take advantage of lower cost natural gas.”

“In making these investments, Huntsman has benefited from the support of the Louisiana Economic Development and Ascension Parish Economic Development in the USA, and the national government in the Netherlands. We thank them for their cooperation and support,” he added.

In addition to its Geismar and Rotterdam sites, the company operates a third worldscale MDI facility in Caojing, Shanghai.