Kazincbarcika, Hungary - Isocyanates supplier BorsodChem has announced that it is considering delaying its planned 200 kilotonnes-per-annum (ktpa) TDI (toluene diisocyanate) plant, "until visibility on the future development of global TDI demand improves."
The Hungarian producer of TDI and MDI (methylene diphenyl diisocyanate) said that in recent months, the global demand for these materials, "has dropped substantially."
Pointing out that isocyanates are key raw materials for a variety of applications, especially in construction and the automotive and the furniture industries, BorsodChem said both construction and the automotive industry have experienced a strong decline, especially in the fourth quarter of 2008.
"This has resulted in a significantly reduced order level for MDI and TDI. On top of that, substantial destocking effects have made order levels decline even further," the company added in a 20 January statement.
BorsodChem is currently is in the middle of a major expansion project at its Hungarian site at Kazincbarcika, in which it is debottlenecking MDI production by about 30 percent. For TDI, a second plant with a nameplate capacity of 200 kilotonnes per annum (ktpa) is currently under construction.
In line with the experienced decline in demand, BorsodChem is currently considering delaying the TDI expansion until it has clearer picture of future development of global demand for TDI.
The debottlenecking project for MDI is not affected by this decision and is supposed to be completed as scheduled at the end of 2009.
The group announced in 2006 that it planned to raise TDI production gradually to 260 kilotonnes per annum (ktpa) by 2012, from 80 ktpa and boost MDI (methylene diphenyl diisocyanate) production to 360 ktpa by the same date, from 140 ktpa in 2006.
Only last November, BorsodChem had announced that the new TDI plant was on schedule and due to start up in mid-2009.