Bayer to spend Eur100 million to expand German polymers business

London (Platts)--14Mar2011/812 am EDT/1212 GMT


Bayer Group said Monday it is to spend Eur100 million ($140 million) to boost its polymers production capacity in Germany.

The initial phase of the project involves the construction of a new 300,000 mt/year toluene diisocyanate (TDI) plant in Dormagen, which is expected on stream in 2014.

This will be followed by the expansion of an existing diphenylmethane diisocyanate (MDI) plant in Brunsbuttel from 200,000 mt/year to 420,000 mt/year, Bayer said, adding the TDI unit at the site will be converted into MDI as part of the project.

The expanded "world-scale" MDI plant is scheduled for commissioning in 2015-2016, depending on the developments in the market, it said.


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MDI is the raw material for polyurethane rigid foam, which is mainly used for thermal insulation in buildings.

"The plastics industry expects global demand for MDI and TDI to continue to rise. With the phased implementation of our optimization concept, we hope to further expand our leading position in this global market, which is expected to experience long-term growth," said Peter Vanacker, member of the executive committee of Bayer MaterialScience, which handles Bayer's polymers business.

--Monicca Egoy, monicca_egoy@platts.com