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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.

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