BASF, Huntsman Corporation, Shanghai Huayi Holding Group Co., Ltd., Shanghai Chlor Alkali Chemical Co., Ltd. and Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. will split their joint venture MDI production enterprises located in Caojing, Shanghai- Taizhou Huangyan Aoxu Mould Technology Co., Ltd.

BASF, Huntsman Corporation, Shanghai Huayi Holding Group Co., Ltd., Shanghai Chlor Alkali Chemical Co., Ltd. and Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. will split their joint venture MDI production enterprises located in Caojing, Shanghai

05-08-2023

BASF and Huntsman Corporation and their Chinese partners, Shanghai Huayi Holding Group Co., Ltd. (hereinafter referred to as "Shanghai Huayi") Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. (hereinafter referred to as Gaoqiao Petrochemical) and Shanghai Chlor Alkali Chemical Co., Ltd. (hereinafter referred to as Shanghai Chlor Alkali Chemical) - announced the split of the joint venture MDI (Methylene diphenyl diisocyanate) production plant of Shanghai Lianheng Isocyanate Co., Ltd. (SLIC, hereinafter referred to as Shanghai Lianheng). In the future, the two companies will independently operate their MDI factory located in Caojing, Shanghai. Huntsman Corporation and Shanghai Chlor Alkali Chemical, BASF and Shanghai Huayi and Gaoqiao Petrochemical will take over one MDI plant respectively.

Dr. Ramkumar Dhruva, President of BASF Monomer Business Department, said: "As one of the enterprises settled in the initial stage of Shanghai Chemical Industry Park, Shanghai Lianheng is an important partner for us to build MDI production in China. After the split, the new organizational structure will enable BASF and our partners, Shanghai Huayi and Gaoqiao Petrochemical, to further develop our MDI business in Shanghai, while serving customers in the region more effectively."

"Huntsman Corporation and its partner Shanghai Chlor Alkali Chemical have successfully established a polyurethane business in China through the production of crude MDI by Huntsman Corporation Lianheng for nearly 20 years. As we integrate these assets into our downstream business, we will better meet customers' future innovation and growth needs," said Tony Hankins, president of Huntsman's polyurethane business department.

Huntsman Corporation and Shanghai Chlor Alkali Chemical will jointly own and operate the MDI plant that began commercial production in 2006 and the hydrogen chloride recovery unit newly added in 2018 to produce chlorine (one of the precursors of MDI). BASF will own and operate the new MDI plant in 2018, including the production facilities for precursor aniline and nitrobenzene. All employees currently working in Shanghai Lianheng will be transferred to their respective new organizations.

The new organizational structure is still in preparation and is expected to take effect in the fourth quarter of 2023, depending on regulatory approvals, permits, and other routine conditions.

In addition to the Caojing plant in Shanghai, BASF also has MDI production bases in Chongqing, China, Lishui, South Korea, Antwerp, Belgium, and Gasma, Louisiana, USA. After the restructuring of Shanghai Lianheng, the global capacity of BASF MDI will reach about 1.9 million tons.

In addition to the Caojing plant in Shanghai, Huntsman Corporation also has world-class MDI production and distillation units in Rotterdam, the Netherlands and Gasma, the United States.

MDI is an important precursor for manufacturing polyurethane, which is a versatile polymer widely used in industries such as automobiles, construction, home appliances (mainly refrigerators), and footwear.