By: ICN Bureau
Last updated : March 06, 2018 8:18 pm
BASF, the world\'s leading chemical company, has received approval for a 400,000 metric tonnes per year MDI (diphenylmethane diisocyanate) project in Chongqing, China. The investment will total approximately €860 million. The facility, which will p
BASF, the world's leading chemical company, has
received approval for a 400,000 metric tonnes per year MDI (diphenylmethane
diisocyanate) project in Chongqing, China. The investment will total
approximately ?860 million. The facility, which will produce a core component
mainly used for polyurethane foams, is expected to start up by 2014.
The project was approved by Chinese authorities, following a stringent
examination of environmental, health and safety standards, two rounds of local
public consultation and several expert reviews. This state-of-the-art facility
will consist of an MDI plant, a nitrobenzene plant and an aniline plant, and
will cover 40 hectares. It will form the center of an integrated chemical
production complex operated by the Chongqing (Changshou) Chemical Industry Park.
Dr. Martin Bruderm?ller, member of the Board of Executive Directors of BASF SE,
responsible for Asia Pacific, said, "Chongqing is at the center of a growing
inland region. Investing here will give us access to what will be one of the
biggest MDI markets in the world. We are applying world-class safety and
environmental standards in the construction and operation of our facility, and
at the same time we will produce products that have a direct impact on
increasing energy efficiency and lowering carbon emissions. Our investment is a
pioneering step into western China. With this investment we are supporting the
Chinese Government with their plans for rapid and sustainable development in
western China."
At the facility, BASF will produce MDI, a core component for versatile
polyurethane (PU) products. Polyurethane is used extensively for cold as well as
heat insulation applications and is the preferred material for keeping food and
medications cold during production, distribution and storage. With its unique
insulation properties, PU is used in the majority of refrigerators and freezers,
for the insulation of hot water tanks, and for district heating or cooling
pipeline insulation. In China, BASF has been producing MDI in Caojing, Shanghai
since 2006. The company also has production of MDI in Antwerp, Belgium; Yeosu,
Korea; and Geismar, Louisiana.
In addition to the production complex for MDI, BASF is also establishing a new
Polyurethane Solutions System House in Chongqing to meet the demand of the
growing markets in important industries like construction, appliances,
transportation and footwear. The planned System House will have local production
with sales, technical service and development personnel to provide fast and
competent support to its customers.
"With these steps, BASF is the first global PU player to show a strong
commitment to this important and fast growing region of China," said Wayne T.
Smith, President of BASF?s Polyurethanes division. "Our Polyurethanes Solutions
System House will be fully integrated into the new MDI plant which is a
significant advantage for our customers. In addition, they will benefit from the
know-how and experience of BASF?s PU specialists worldwide."
Local employment
BASF estimates that there will be at least 300 permanent jobs created through
the BASF facility alone when the plant is operating in full swing. At start-up,
a total of 17 plants and businesses in the chemical park will immediately begin
operation as key partners or suppliers, forming the nexus of a new industry
manufacturing cluster serving multiple, labor-intensive industries.
Focus on safety and environmental protection
Key safety and environmental protection features of the proposed project include
full integration into a chemical park and optimized processes to bring very high
efficiency and minimal emissions. The complex is an example of BASF?s integrated
production concept known as "Verbund" in which waste streams are recycled and
used as feedstock for chemical production to maximize efficiency and minimize
environmental impact.
BASF has introduced a "five levels of safety for isocyanate production" system
based on advanced solutions stemming from decades of experience worldwide to
meet strictest local and BASF global environmental and safety standards. BASF
works closely with the chemical park to guarantee very high standards for the
facilities and management of environmental protection in the area.
Additionally, BASF will implement a "three levels of water protection" system.
These processes include water protection measures from other sites BASF has
operated for many years near sensitive watercourses such as the Rhine River in
Ludwigshafen, Germany, the Schelde River in Antwerp, Belgium (located near the
coastline of the North Sea) and the Mississippi River near Geismar, Louisiana.