By Nina Ying Sun, Plastics News Staff
Chongqing - BASF AG may be moving forward with its second MDI (methylene diphenyl diisocyanate) plant in China, according to Chinese news reports.
Qifan Huang, deputy mayor of Chongqing, the largest Chinese municipality in terms of population, said at a recent government meeting that the $4000-million (Yuan 28 700-million) project is expected to break ground in June and be completed in December 2011.
Huang also said the project will be located in the Changshou (Longevity) Chemical Industry Park, where PetroChina Co. Ltd is going to start building a 10-million-tonnes-per annum (mtpa) capacity refinery of and an ethylene plant of 1 mtpa in 2008.
BASF's joint venture MDI plant with Chongqing will have an annual capacity of 400 kilotonnes. Target annual sales are Yuan 50 000 million yuan and profits 10 000 million yuan, said Huang. He is in charge of the government's official MDI leadership team.
BASF has denied progress of the project. "We are currently investigating the terms and feasibilities together with the authorities in Chongqing for a world-scale 400,000 metric ton plant to meet growing market demand in China. … It is too early to discuss investment amounts," according to spokesman Gareth Rees in a 15 Feb statement.
BASF signed a memorandum of cooperation 12 June 2007, expressing interest with Chongqing Chemical and Pharmaceutical Holding (Group) Co. and local relevant authorities, BASF said.