By Liz White, UT staffKazarbarcinka, Hungary-Chemicals group BorsodChem Rt plans to build a 160-kilotonnes-per-annum capacity TDI (toluene diisocyanate) plant at its site in Kazarbarcinka, by 2009. The group will also build a 200-ktpa MDI (methylene diphenyldiisocyanate), unit by 2011. BorsodChem also said it plans to add value to its isocyanate production by moving into downstream products such as polyurethane systems. The Hungarian group said it plans to continue its profitable growth in MDI," with the new plant, which will double its MDI capacity by 2010/11. The strategy, which involves an investment of Euro 500 million, was announced by newly appointed ceo Kay Gugler, at the company's 28 April annual general meeting. BorsodChem statement on the strategy commented that there is Increasing global demand for TDI and uneven geographical spread of capacities." This allows BorsodChem to exploit a unique opportunity to become the number one European producer of TDI." Demand for MDI also continues to rise, BorsodChem said, and the company said it will" harness the potential inherent in economies of scale" by continuing to invest in MDI production." The new facilities will be integral parts of the site in Kazincbarcika.BorsodChem gave figures indicating that after the expansion, it will be just ahead of leading isocyanate producer Bayer MaterialScience in TDI production in Europe, and just behind the German group in MDI production in the region. Central to the Hungarian company's strategy is also the plan to differentiate MDI and TDI for added value move forward into polyurethane systems and solutions, said the statement. This move forward from commodity products towards further processed speciality products, will enable the company to be a price setter rather than price taker," BorsodChem commented To foster the technological innovation and R&D needed, BorsodChem will invest heavily in its people simultaneously with further capacity expansion projects," the company added. BorsodChem will maintain its production of PVC (polyvinyl chloride) for synergies and run it for cash returns, at the same time exploring options in pending European industry consolidation."In Borsodchem Euro 500-million investment, it will also add a further 50 ktpa of aniline. By 2011, BorsodChem's total capacities will be (ktpa):TDI 250, MDI 340, aniline 300, PVC 400, VCM 400, chlorine 260. "