BASF Plans to Expand MDI Capacity in Shanghai to 400 ktpa

Recently, the MDI expansion project launched by Shanghai BASF Polyurethane Co., Ltd. (SBPC) is under public disclosure. According to the announcement, SBPC, located in Shanghai Chemical Industry Park, is one of the original three Sino-foreign joint ventures that initiated an integrated isocyanates plant project in Shanghai. The project was co-launched by Shanghai Lianheng Isocyanate Co., Ltd. (SLIC), Shanghai Huntsman Polyurethane Co., Ltd. (Huntsman Shanghai), and Shanghai BASF Polyurethane Co., Ltd. (BASF Shanghai). In July 2023, BASF announced that SLIC would be split between BASF Shanghai and Huntsman Shanghai. As of February 2024, the spin-off had been completed, with BASF Shanghai acquiring SLIC’s 240 ktpa crude MDI plant along with the nitrobenzene/aniline unit.

Currently, BASF Shanghai’s crude MDI capacity cannot meet demands in the surrounding markets. Therefore, the company plans to enhance production efficiency by renovating bottleneck facilities that affect the increase in production capacity per unit time. It will also extend the production time of the nitrobenzene/aniline unit and the MDA/crude MDI unit from the original 7,500 hours/year to 8,000 hours/year. Once the expansion project is completed, BASF Shanghai’s crude MDI capacity will achieve 401.76 ktpa, while its MDI splitting capacity will remain unchanged at 300 ktpa.

Furthermore, BASF’s MDI splitting capacity at its Chongqing plant is currently being expanded to 530 ktpa.

“Winning Ways” Strategy - Continuing to Increase Investment in the Asia-Pacific Region, Particularly in China

In September 2024, BASF presented its new “Winning Ways” strategy along four strategic levers: Focus, Accelerate, Transform and Win, aiming to strengthen its core businesses and add the value of standalone businesses. In order to enhance its presence in Asian markets, BASF continued to increase investments in the Asia-Pacific region, particularly in China. Apart from the MDI expansion project in Shanghai, BASF’s investment projects in China include Zhanjiang Verbund site, expanded downstream chemical plants at BASF-YPC, investments in synthetic biotech, polymer dispersions, anode binder, battery materials and renewable power. These investments underscore BASF’s long-term commitment and confidence in the Chinese market, as well as its strategic emphasis on sustainable development and high value manufacturing.

China is to Contribute Nearly 50% of Global MDI Capacity

In 2024, the global MDI capacity reached 10.69 mtpa in 2024, according to PUdaily. The MDI capacity in China was 4.69 mtpa, contributing 44% of the global total capacity. It’s projected that by 2029, the global MDI capacity will increase to around 12.84 mtpa and China’s MDI capacity will expand to 6.19 mtpa, further raising its share in the global total capacity to 48%.

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