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May 23, 2014 12:00 AM

Shanghai Chlor-Alkali Chemical to fund a 240kT/year MDI expansion project

Jane Ho
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    Shanghai, China –Shanghai Chlor-Alkali Chemical (SCAC) released an announcement in May on its plan to invest RMB308m ($50m) in a project including 240kT/year MDI facilities and a 120kT/year HCI catalytic oxidation recovery facility.

    The project will be jointly conducted by Huntsman Polyurethanes Shanghai (HPS) and Shanghai Lianheng Isocyanate Company (SLIC). A total amount of RMB4.7bn will be pumped into the project. The new facilities will be located in Shanghai Chemical Industry Park and are expected to be completed in 2017, said SCAC’s securities representative Shen Qinyi.

    In this joint project, SLIC will set up a 240kT/year liquefied MDI or PAPI facility, and HPS will set up a 240kT/year MDI refining facility for the polymeric MDI produced by SLIC. About RMB3.4bn out of the total investment is earmarked for the MDI facilities.

    SLIC is a joint venture among BASF Huntsman Shanghai Isocyanate Investment, SCAC, Sinopec and Shanghai Huayi Group. SCAC has a 15% stake in SLIC and a 30% stake in HPS. According to the announcement, SLIC currently has a 240kT/year capacity for polymeric MDI and in 2013 had an RMB4bn revenue.

    XE Currency Exchange: 23 May

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