Bayer develops Shanghai plant

German Bayer MaterialScience AG signed an agreement with the Shanghai Chemical Industry Park Corporation in the United States on Friday for the implementation of advanced process technology for Bayer's MDI plant in the city.

A press release from its Shanghai-based office said the signing ceremony was held during a visit by Shanghai's Mayor Han Zheng to the Bayer facilities at the Baytown Industrial Estate in Houston, Texas.

Bayer is currently building facilities for the production of polyurethane raw material diphenylmethane diisocyanate (MDI) at the Shanghai Chemical Industry Park in Caojing.

MDI is used for the production of rigid foam products mainly applied in thermal insulation for houses and refrigerators or other parts of the cold-chain. The MDI project is part of Bayer's goal to turn Caojing into an integrated production site by building new facilities for polymer production with an investment of US$1.8 billion until 2009, said Christina Lueer, a spokeswoman from Bayer MaterialScience AG.

Lueer said a production plant for polymeric and monomeric MDI from crude MDI and logistic facilities is due to be completed by mid-2006.

In addition, Bayer will build a production plant capable of turning out 230,000 metric tons of crude MDI a year, which is scheduled to begin operations in 2008, she said.

"The agreement for the design of advanced process technology for Bayer's MDI plant is in line with the company's commitment to implement latest technologies and state-of-the-art processes in all new plants wherever possible," said Hagen Noerenberg, chairman of Bayer MaterialScience AG.

Noerenberg said the new plant will set a fresh benchmark for world-scale and efficient MDI production.

"China is already one of our most important markets," said Noerenberg.

He said the country's importance for the chemical industry and many other sectors will continue to increase in the coming years. "Bayer's investments in Caojing will create ideal conditions for strengthening its growth in this key market."

Source: China Daily