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Bayer MaterialScience will invest 2.1 billion euros (US$2.8 billion) worldwide by 2006 to steadily modernize and expand its plants and facilities.
"However, the lion's share of the investment in new facilities will go to China," said Frank Grunert, executive vice-president of BU Polyurethanes, Marketing of Bayer MaterialScience AsiaPacific.
The investment in China is expected to account for 40 per cent of the 2.1 billion euros, representing 840 million euros (US$1.1 billion).
Of the global investment, America will take up 21 per cent and Europe, the Middle East and Africa will make up a combined 39 per cent.
"For the next five years, we will have three major projects ongoing in Shanghai's Caojing Chemical Industry Zone, with a total investment of US$1.8 billion," said Grunert.
He said the huge investment will be finished by 2009, which means Bayer MaterialScience will continue putting US$700 million more into the projects after 2006.
These projects aim to produce coating raw materials, Makrolon polycarbonate and polyurethane raw materials MDI and TDI for automobile, furniture, daily necessities and construction industries.
Its coating plant is being built and is expected to produce 30,000 tons of coating annually in 2006, with an option to expand the capacity to a total of 50,000 tons per year.
The second project, its fifth in the world, involves the production of transparent high-tech plastic Makrolon. The new facility is scheduled to go on stream in 2006.
Grunert said that, in line with market developments, the facility will gradually be extended to a total capacity of 200,000 tons a year, primarily for customers in the Asia Pacific region.
The third project covers the building of production facilities for polyurethane raw materials MDI and TDI.
The company plans to implement the MDI project in two phases, with the first completed by 2006. "Construction is due to begin soon," said Frank Bertram, head of Global Marketing, Product Management and Innovation of the Business Unit Polyurethanes of Bayer MaterialScience.
This will be followed by a second phase involving the building of a production plant for crude MDI with an annual capacity of 230,000 tons, which is scheduled to go on stream in 2008.
Regarding TDI, Bayer Material-Science is planning to build a facility with an annual production capacity of 160,000 tons due for completion in 2009.
"The projects for MDI and TDI at Bayer's Integrated Site in Caojing is our clear commitment to the investments in China," Grunert said.
He said these facilities will make a major contribution to Bayer's business in addition to its existing polyol and isocyanates production sites in Asia.
"We will achieve this goal by focusing on world-scale plants and implementing best-in-class technologies at our Caojing site," he said.
Source: China Daily
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