BASF to build new TDI plant in Germany

Chemical supplier BASF plans to invest 1 billion euros (US$1.27 billion) at its German headquarters in Ludwigshafen to boost its polyurethane foam chemicals capacity.

The company will build a new plant with an annual capacity of 300,000 metric tons of toluene diisocyanate (TDI), a core component for polyurethanes. TDI is used for seat cushions and interior applications in the automotive industry, as well as in flexible foams for mattresses, cushions or wood coating for furniture.

Production will start at the end of 2014. BASF plans to close down its 80,000 metric tons per year TDI production plant in Schwarzheide, Germany, when the new plant – which will employ about 200 people – goes on stream.

“This project will position us as the low-cost TDI producer in Europe due to economies of scale and the highly efficient integration into our Verbund [complex],” said Wayne T. Smith, president of BASF’s polyurethanes division. “Building our new TDI plant at our largest Verbund site in Ludwigshafen gives us the advantage of the excellent production synergies, raw material integration and logistics. Together with our existing TDI sites in Asia and North America we will be able to optimally serve customers in all major markets.”