Germany's Bayer group is investing around Eur1 billion ($1.33 billion) in five projects to expand its methylene diphenyl diisocyanate and polycarbonate production capacities in Shanghai, China, to enable it to focus more on the Asia Pacific, the company said in a statement Thursday. The memorandum of understanding for the five projects have already been signed with the relevant authorities, Bayer said.
The five projects, planned in cooperation with Bayer Technology Services, aims to increase the company's production capacity at the Shanghai Chemical Industry Park, where Bayer will more than double its MDI and high-performance polycarbonate capacity to 1 million mt/year and 500,000 mt/year, respectively, by 2016.
Under the company's newly announced expansion plans, a new 200,000 mt/year polycarbonate facility will be built, while its existing 100,000 mt/year plant will be expanded to 300,000 mt/year.
Bayer will also build a new MDI plant with an annual production capacity of 500,000 mt/year and expand the capacity of its present MDI production facility from 350,000 mt/year to 500,000 mt/year. MDI is a raw material for polyurethanes rigid foams.
The company is also planning to build a new 50,000 mt/year hexanethylene diisocyanate production facility and expand its existing HDI capacity to meet short-term market demand. HDI is used in the production of high-quality surface coatings.
"The expansion of our capacities in China is an important step in strengthening our presence in the emerging economies," said Bayer's Management Board Chairman. Marijn Dekkers. "We want to increase Group sales in Greater China to around Eur5 billion by 2015. MaterialScience is expected to contribute at least half of this amount."
In 2009, the Bayer Group in Greater China recorded sales of Eur2.1 billion, of which Eur1.2 billion was contributed by MaterialScience.
"For us, it is strategically important to have the necessary capacities in the Asia Pacific region to meet constantly rising demand," said Patrick Thomas, Chief Executive Officer of Bayer MaterialScience.
The Asia Pacific region currently accounts for around 60% of the world's total polycarbonate market, a plastic used predominantly in the automotive, electrical and electronics and construction industries, with the greatest demand coming from China, the company said.
In the statement, Bayer added that it would relocate the headquarters of the Polycarbonates Business Unit from the main Leverkusen site in Germany to Shanghai to ensure even greater proximity to the booming polycarbonates market in Asia and strengthen its research and development activities there, the company added.
The five projects, planned in cooperation with Bayer Technology Services, aims to increase the company's production capacity at the Shanghai Chemical Industry Park, where Bayer will more than double its MDI and high-performance polycarbonate capacity to 1 million mt/year and 500,000 mt/year, respectively, by 2016.
Under the company's newly announced expansion plans, a new 200,000 mt/year polycarbonate facility will be built, while its existing 100,000 mt/year plant will be expanded to 300,000 mt/year.
Bayer will also build a new MDI plant with an annual production capacity of 500,000 mt/year and expand the capacity of its present MDI production facility from 350,000 mt/year to 500,000 mt/year. MDI is a raw material for polyurethanes rigid foams.
The company is also planning to build a new 50,000 mt/year hexanethylene diisocyanate production facility and expand its existing HDI capacity to meet short-term market demand. HDI is used in the production of high-quality surface coatings.
"The expansion of our capacities in China is an important step in strengthening our presence in the emerging economies," said Bayer's Management Board Chairman. Marijn Dekkers. "We want to increase Group sales in Greater China to around Eur5 billion by 2015. MaterialScience is expected to contribute at least half of this amount."
In 2009, the Bayer Group in Greater China recorded sales of Eur2.1 billion, of which Eur1.2 billion was contributed by MaterialScience.
"For us, it is strategically important to have the necessary capacities in the Asia Pacific region to meet constantly rising demand," said Patrick Thomas, Chief Executive Officer of Bayer MaterialScience.
The Asia Pacific region currently accounts for around 60% of the world's total polycarbonate market, a plastic used predominantly in the automotive, electrical and electronics and construction industries, with the greatest demand coming from China, the company said.
In the statement, Bayer added that it would relocate the headquarters of the Polycarbonates Business Unit from the main Leverkusen site in Germany to Shanghai to ensure even greater proximity to the booming polycarbonates market in Asia and strengthen its research and development activities there, the company added.
