BASF and Huntsman and their Chinese partner companies — Shanghai Hua Yi (Group) Company, Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd., and Shanghai Chlor-Alkali Chemical Co., Ltd. — have announced the planned separation of their joint MDI (diphenylmethane diisocyanate) production at Shanghai Lianheng Isocyanate Co., Ltd.
Going forward, the companies will independently operate the two MDI plants located at the site in Caojing, China. Huntsman and Shanghai Chlor-Alkali Chemical Co., Ltd. will take over one of the MDI plants, and BASF, Shanghai Hua Yi (Group Company) and Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. will take over the other MDI plant.
“The new organizational setup will allow BASF and our partners Shanghai Hua Yi and Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. to further develop our MDI operations in Shanghai while serving the demand of our customers in the region even more effectively,” said Ramkumar Dhruva, president, Monomers division, BASF.
All employees currently employed in the joint venture will be transferred to the respective organizations.
The new operational setup is expected to become effective during the fourth quarter of 2023 and is subject to pending regulatory authority approvals, permits and other customary closing conditions.