Kazincbarcika, Hungary -- BorsodChem Zrt inaugurated its new TDI (toluene diisocyanate) plant at its site in Kazincbarcika in North-East Hungary, on 30 Sept. The facility, now in commercial operation, has a capacity of 160 kilotonnes per annum (ktpa), which can be increased to 200 ktpa if demand warrants it, the company said.
BorsodChem's Euro 200 million ($267 million) investment in the new facility positions it as "Europe'sleading TDI manufacturer," the company claims. The isocyanate is used for flexiblepolyurethane foams for upholstery, mattresses and automotive seats.Smaller uses for TDI include polyurethane elastomers and coatings.
The company adds that the "current unfavourable market environment" means that full utilisation of the facility is not expected till later.
"The Hungarian Government is pleased with this significant capacity expansion that Chinese Wanhua Industrial Group has made in BorsodChem," said János Fónagy, Parliamentary Secretary of the Ministry for NationalDevelopment of Hungary, at the opening ceremony of the plant.
"This significant development at BorsodChem, the company representing the largest Chinese investment so far in Hungary, exemplifies the development of Chinese-Hungarian business relations and it is in concert with the Chinese-Hungarian cooperation aiming to improve Hungary's competitiveness," Fónagy added, in the company statement.
The event was attended by H. E. Gao Jian, Ambassador of the People's Republic of China in Hungary, several local dignitaries, as well as suppliers and customers.
"The opening of the TDI-2 plant is a major milestone for BorsodChem in becoming the leading supplier of TDI in the European market and an important step for Wanhua in the implementation of its ambitious global growth strategy," said Jason Ding, chief executive officer of Wanhua Industrial Group and chairman of BorsodChem, in the company statement.
"We are very proud of the new facility, which substantially improves production efficiency and contributes to the overall competitiveness of the company. I am sure our customers will appreciate enhanced product quality and reliability of supply," commented Wolfgang Büchele, ceo of BorsodChem.