SHANGHAI: Bayer MaterialScience, a unit of German industrial giant Bayer, has committed to continuing its investment in a toluene diisocyanate (TDI) project in Shanghai with the goal of expanding the production site, a top company executive said.
The company, one of the world's largest polymer makers, is expected to have the mechanical completion of the TDI facility project completed by the end of 2010, with an initial production capacity of 250,000 tons per year, said Michael Koenig, president of Bayer MaterialScience Group China.
The company is also hoping to reduce energy consumption by 40 to 60 percent through advanced technology in the manufacturing of TDI. The chemical is often used in the manufacture of flexible polyurethane foams used in furniture, bedding and automotive and airline seats.
Despite 2009 being a challenging year for the chemical industry worldwide, Koenig said they had managed to report "a little growth" last year in China, which "differentiated us from the rest of the world".
"We have seen the growth of orders rising after the Spring Festival of last year, even though the indicators were still weak at that time," he said.
The company said it is quite upbeat about future business growth in China, with recent economic data released showing the Chinese economy gaining speed and the global economy beginning to rebound.
"In this environment, I'm quite sure that consumption will pick up both in China and the rest of the world, thus we should set up a good basis for our business growth in China."
Bayer MaterialScience also announced late last week that it has consolidated its four legal entities in China, namely Bayer Coating Systems Shanghai, Bayer Polymers Shanghai, Bayer Polyurethanes Shanghai and Bayer MaterialScience Trading Shanghai, under one roof.
The firm will continue to raise investment in the new entity, making it the largest foreign-invested company in Shanghai.
