Huntsman has commenced preliminary engineering to expand production of methylene diphenyl diisocyanate (MDI) by investment in a new, world-scale MDI plant at its complex in Geismar, Louisiana, the company announced on Monday.

 

The 400,000-tpy expansion will leverage the significant advantages of the Geismar site, with its access to US shale gas, strong logistics base and excellent integration, according to company officials. 

The new capacity is expected to come on-stream in 2018 and will enable Huntsman to further support the global growth of its customers.

MDI capacity at the site is currently undergoing an expansion to 500,000 tpy, which is due to come on-stream next year. Huntsman’s 760-acre Geismar site is the largest integrated MDI production facility in the Americas region.

MDI based polyurethanes are used in an extensive range of applications and markets -- including construction, automotive, coatings and footwear -- and provide key benefits of energy efficient insulation, comfort and well-being, according to Huntsman representatives.

“Shale gas has significantly improved the economics of investing in US facilities and has helped our Geismar facility to establish a strong cost leadership position," said Anthony P. Hankins, president of Huntsman Polyurethanes. "The planned additional capacity will reinforce this position and establish the plant as a truly global supplier."

“Demand for MDI-based polyurethanes continues to grow at around 8% annually," he continued. "In order to satisfy this demand, Huntsman Polyurethanes has a sustained global program of both upstream and downstream investment to support our customers’ growth ambitions.”

In addition to its Geismar facility, Huntsman Polyurethanes operates world-scale MDI facilities at its sites in Rotterdam, Netherlands, and Shanghai, China.