Midland, Michigan -- Dow Polyurethanes has signed a letter of intent with Jilin Connell Chemical Industry Co. Ltd., aimed at providing US Gulf Coast aniline supply for use in the production of MDI (methylene diphenyl diisocyanate).
Jilin Connell, a subsidiary Jilin Connell Group, is the top merchant aniline producer and distributor in China, Dow said in a 5 Dec announcement.
Dow said it operates the largest single-train crude MDI plant in the world today from its Freeport, Texas site; therefore, competitive US aniline supply is critical to meet customers' needs in a variety of markets and applications.
The chemical company said the letter of intent converns the exploration of opportunities for future technical and commercial collaboration in the industrial production of aniline. Discussions include plant location options such as the possibility of Jilin Connell building a fence line plant at Dow's site in Freeport.
"Dow customers need competitive supply especially in this economy. We are looking for a partner who is a reliable, competitive supplier that can enable us to strengthen our MDI business in North America to serve the rapidly-growing energy efficiency and lifestyle-enhancing markets," said Steven English, global vice president for Dow Polyurethanes.
A signing ceremony took place 5 Dec in Los Angeles, California, as part of a Chinese delegation's visit to the US and Canada to sign a number of potential investment collaborations including the one with Dow, according to the announcement.