China’s Cabinet, the State Council, has approved the feasibility study of a Sino-foreign chemical complex to be built in Shanghai. The complex, which is estimated to cost USD 1 billion, will be jointly financed by BASF AG of Germany, US-based Huntsman Corp., and four Chinese partners, including China Petroleum & Chemical Corp. and Sinopec Shanghai Gao Qiao Petrochemical Corp. BASF and Huntsman together will hold 70% of the joint venture. The integrated isocyanates complex will consist of three separate ventures – a 160,000-metric-ton-a-year crude diphenylmethane diisocyanate, or MDI, manufacturing plant, an MDI finishing plant and a 130,000-ton-a-year toluene diisocyanates, or TDI, plant, and another MDI finishing plant. MDI and TDI are important precursors in the manufacturing of polyurethanes. The polymers are used in the automotive and construction industries as well as for products such as refrigerators, upholstery and mattresses. The complex is BASF’s second largest investment in China. The complex is expected to be completed in three years after the Chinese government’s formal approval.
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