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BIZCHINA / Chemical

Bayer unit beefs up Shanghai plant

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Updated: 2007-05-10 11:37

Bayer MaterialScience, a business unit under German industrial giant
Bayer, has said it is expanding its plant for coating and adhesive raw
materials in Shanghai, its most important production site in the
Asia-Pacific region.

The company plans to build up a new facility for polyurethane dispersions
with an annual capacity of 20,000 tons. It is scheduled to come on stream
in the second quarter of 2008.

The company will also increase its annual production capacity for the
aromatic polyisocyanate Desmodur L to 20,500 tons during the second half
of 2007.

Annual capacity for aromatic grades of the Desmodur IL product line will
also be doubled to 5,500 tons by the end of 2007, and production of
aliphatic polyisocyanates of the Desmodur N series will be expanded by
the start of 2008.

"With a new plant and two expansion measures in Shanghai, we want to
ensure long-term supply to our customers in this region and to keep pace
with future market growth," said Volker Mirgel, senior vice-president of
the coatings, adhesives and sealants business unit in the Asia-Pacific
region.

"With that, we will also consolidate our position as one of the world's
leading producers of polyurethane coating and adhesive raw materials," he
said.

These three measures are part of a comprehensive Bayer investment program
at its integrated Shanghai site, with a total investment of 1.8 billion
euros by 2012.

"China's coatings output last year reached 4 million tons and the market
has continuously experienced double-digit growth for almost a decade,"
said Li Xilin, director and head of the coatings business in China.

"Polyurethane-based coatings today offer the best performance spectrum.
With the expansion of our capacity, we will be able to serve the
increasing market demand with the best products," he said.

(For more biz stories, please visit Industry Updates)

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