Belford Roxo, Brazil – Bayer MaterialScience plans to stop production of MDI at its plant near Rio de Janerio in July 2015, removing 55kT/year MDI production from the market, according to a company announcement.
Additionally, around 15kT/year polyether polyols and a small unit making raw materials for the coating industry will close at the same time, the company said.
Bayer added that internal analyses show it is too expensive to make these products in Belford Roxo compared to other sites.
Around 320 employees will be affected by the closure and BMS is working with Bayer CropScience and Bayer HealthCare to transfer as many workers as possible to other divisions. BMS said it is working with the local Works Councils and trade unions on severance packages for the remaining workers.
The Belford Roxo plant opened in 1983, and had capacity of 45kT/year MDI and a splitter with capacity of 13kT/year in 2005. At that time Bayer was pondering a boost in MDI for Brazil by adding a further 10 kT/year capacity. Bayer was importing around 10kT/year TDI into Brazil and an equivalent amount of polyols. At the time it was the only isocyanate producer on the continent.
In a statement issued to UTECH-polyurethane.com the company said it has "no further MDI production in Latin America."
It said: "Bayer MaterialScience operates globally, so deliveries can be made from several sources. We will continue to serve local customers."