New Source BASF Plans to Manufacture a Plastic Precursor in India

Source: dpa 1 min Reading Time

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BASF, the world's largest chemical company, is considering building a new plant in India to produce MDI (methylene diphenyl diisocyanate), a precursor to plastics ...

BASF announces that it will take the next step toward producing the polyurethane precursor MDI in India ...(Image: BASF)
BASF announces that it will take the next step toward producing the polyurethane precursor MDI in India ...
(Image: BASF)

As part of an advanced feasibility study for the India site, the company has already secured an industrial plot in Dahej (in the state of Gujarat) for the potential project, BASF has now announced. Methylene diphenyl diisocyanate (MDI) serves primarily as a raw material for the versatile plastic polyurethane, which is used, for example, as foam in building insulation and refrigeration technology, but is also employed as a high-quality coating system. “India is one of the most attractive growth markets worldwide. We therefore expect strong demand across numerous industries,” said Stephan Kothrade, a member of BASF’s Executive Board, commenting on this decision.

BASF Operates Several MDI Production Facilities Worldwide

According to the report, the company could thus supply MDI to customers in India and neighboring markets through local production. However, the final investment decision still depends on the results of the ongoing feasibility study as well as the necessary approvals, the report added. At the planned site in Dahej, BASF’s Indian subsidiary already operates a so-called MDI splitter plant as well as a polyurethane production facility. BASF also operates several other MDI production plants. Currently, the approximately $1 billion expansion of the MDI plant in Geismar, U.S., is nearing completion. The Ludwigshafen-based (Germany) company also operates additional MDI production facilities in Antwerp, Chongqing, and Caojing, as well as in Yeosu (South Korea).

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