BASF to Expand MDI Production Capacity in North America
United
States: BASF SE, a
Germany based chemical company, has begun the
engineering of its existing methylene diphenyl diisocyanate (MDI) production
facility at Geismar, Louisiana to increase the production capacity of MDI. MDI
is a vital component for manufacturing of polyurethanes, which have various
applications in automotive and construction industries. The company plans to
increase the MDI production capacity from 300,000 metric tons per year to
600,000 metric tons per year. This investment will cater to the MDI demand in
the North American market. As per the head of the regional business unit
Monomers North America, Stefan Doerr, the combination of high quality raw
materials obtained from shale gas and the infrastructure located at Geismar
will prove to be a fruitful investment for capacity expansion at existing facility
for the company.
TechSci
Research depicts that the such
investment is a strategic move towards increasing the growth of regional market
of MDI for the company. The expansion of MDI production capacity will meet the
growing demand for polyurethanes across global markets. Such investment decision
will also contribute market for Thermoplastic Elastomers (TPEs) in India since
MDI is also an important component for TPE and is sources from United States in
large amounts.
According to the recently published
report by TechSci Research, “India
Thermoplastic Elastomers Market By Type (Styrenic Block
Copolymers, Thermoplastic Olefins, Thermoplastic Polyurethanes, etc.), By End
Use Application (Automotive, Consumer Durables, etc.), Competition Forecast and
Opportunities, 2011 – 2025”, the
market of thermoplastic elastomers in India is anticipated to grow at a CAGR of
around 7% during 2016 – 2025. Styrenic Block Copolymers dominated India
thermoplastic elastomers market in 2015, and the segment is expected to
continue dominating the market through 2025 owing to its wide range of
applications in various industries, ranging from automotive to consumer
durables. During the forecast period, automotive industry is expected to emerge
as the largest end user of TPEs in India, on account of increasing consumer
preference for high performance and lightweight automobiles in the country. A
major share in the demand for thermoplastic elastomers emanates from Tamil
Nadu, Maharashtra, National Capital Region (NCR), Gujarat, Karnataka and Andhra
Pradesh, among others.