Methylene Diphenyl Diisocyanate Huntsville Invests Millions in MDI Production

Huntsville invests a three-digits million dollar sum in its MDI production in the US and Europe. With additional capacities that are planned to go on–stream by 2014, the company plans to strengthen both up- and downstream business units.

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Geismar, Louisiana/USA – American chemicals company Huntsman is investing US $ 135 million to upgrade its methylene diphenyl diisocyanate (MDI) manufacturing facilities in Geismar, US, and Rotterdam, Netherlands.

The US $ 78m investment at the Geismar facility shall help to increase MDI capacity from 50 kilotons to 500 kilotons. The remaining US $ 57 million will be used at the Rotterdam facility for commissioning a new MDI splitter and an additional downstream specialties manufacturing unit for differentiated polyurethane products.

Profiting from the Shale Gas Boom

The new capacity at Geismar is expected to come on-stream in 2014. Huntsman Polyurethanes president Anthony Hankins said the Geismar investment enables the company to strengthen its upstream cost leadership position, while the Rotterdam investment will help provide downstream, customised products.” In Louisiana, the company can leverage the advantages of a strong logistics base and excellent integration, as well as a proximity to the US gas market

"The benefits of US shale gas have significantly improved the economics of investing in US facilities and Huntsman has a number of other investments planned which will take advantage of lower cost natural gas," Hankins added. "In making these investments, Huntsman has benefited from the support of the Louisiana Economic Development and Ascension Parish Economic Development in the US, and the national government in the Netherlands."

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