Companies to separate joint MDI production in China

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BASF, Huntsman, Shanghai Hua Yi, Shanghai Chlor-Alkali Chemical Co. Ltd. and Sinopec Shanghai Gaoqiao Petrochemical Co. Ltd. are about to separate joint MDI production in Caojing, China.

Huntsman, together with Shanghai Chlor-Alkali Chemical Co., Ltd, will own and operate the original MDI plant that started commercial production in 2006, along with a hydrogen chloride recycling unit for the production of chlorine, a precursor for MDI, that was added in 2018. BASF will own and operate the MDI plant that was added in 2018, including the manufacturing facilities for the precursors aniline and nitrobenzene. Image source: NicoElNino - stock.adobe.com (symbol image).

BASF and Huntsman together with their Chinese partner companies – Shanghai Hua Yi (Group Company), Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. and Shanghai Chlor-Alkali Chemical Co., Ltd. – announce the planned separation of their joint MDI (diphenylmethane diisocyanate) production at Shanghai Lianheng Isocyanate Co., Ltd. (SLIC). Going forward, the companies will operate the two MDI plants located at the site in Caojing, China independently.

New operational setup is in preparation

Huntsman together with Shanghai Chlor-Alkali Chemical Co., Ltd, and BASF together with Shanghai Hua Yi (Group Company) and Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd will each take over one of the MDI plants. The new operational setup is in preparation and is expected to become effective during the fourth quarter of 2023, and is subject to pending regulatory authority approvals, permits and other customary closing conditions.

Companies to separate joint MDI production in China

New operational setup is in preparation

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