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World desk2 min

Polyurethane Precursor Production Stepped Up in Shanghai in 2006

The 2006 Shanghai complex brought announced crude MDI capacity of 240,000 metric tons a year and a separately reported 160,000 metric tons of TDI capacity. Here is what the startup and later restructuring meant.
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“Polyurethane precursor production stepped up” refers to a 2006 startup at Shanghai Chemical Industry Park—not a current production announcement. Huntsman, BASF and three Chinese partners marked the launch of an integrated isocyanates complex that included crude MDI capacity of 240,000 metric tons per year. A contemporaneous report also put the complex’s TDI capacity at 160,000 metric tons per year.

What the 2006 expansion involved

On 18 August 2006, Huntsman, BASF, Shanghai Hua Yi, Sinopec Shanghai Gao Qiao Petrochemical and Shanghai Chlor-Alkali marked startup of an integrated isocyanates complex at Shanghai Chemical Industry Park. Huntsman reported project capital expenditure of $1 billion and crude MDI capacity of 240,000 metric tons per year. These were announced project and capacity figures, not verified current output. (Huntsman, 18 August 2006)

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The complex was organized through separate joint ventures covering MDI finishing and prepolymers, crude MDI production, and MDI finishing alongside a TDI plant. The Huntsman announcement names the TDI plant and its nitric acid and dinitrotoluene precursors but does not state its capacity. A 23 August 2006 report by Chemical & Engineering News, published by the American Chemical Society, gives the complex’s annual capacity as 240,000 metric tons of crude MDI and 160,000 metric tons of TDI. The TDI figure is from that report, rather than Huntsman’s release. (Chemical & Engineering News, 23 August 2006)

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What MDI and TDI are used for

MDI and TDI are isocyanates used as precursors in polyurethane manufacturing. Huntsman’s 2006 announcement identified automotive, construction, refrigerators and other appliances, upholstery, and footwear as downstream application sectors. A 2023 joint release from BASF and Huntsman also cited automotive, construction, refrigerators, and footwear. The complex therefore served chemical production for multiple industries; its capacity figures do not describe finished polyurethane output. (Huntsman, 18 August 2006; BASF and Huntsman, 31 July 2023)

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From startup to commercial operation

On 18 October 2006, Huntsman said its MDI plants had entered commercial operation. It reported that operating rates were building rapidly according to plan and that product was being processed and supplied to the Chinese market. CEO Peter R. Huntsman said the company expected full design capacity throughout 2007 and beyond. That was a management expectation at the time; the cited announcements do not establish whether or when it was achieved. (Huntsman, 18 October 2006)

What is known about the later Caojing arrangement

In a joint release dated 31 July 2023, BASF and Huntsman described a planned separation of the Caojing MDI production arrangement. Under the proposed setup, Huntsman and Shanghai Chlor-Alkali would take over the original MDI plant that began commercial production in 2006; BASF, Shanghai Hua Yi and Sinopec would take over a plant added in 2018. The release said the arrangement remained subject to approvals and other closing conditions. It does not establish the exact ownership or operating status in 2026. (BASF and Huntsman, 31 July 2023)

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How to read the headline today

The phrase comes from a historical industrial news item. Chemistry World’s 22 August 2006 listing paired it with the subtitle “China on track for world-beating polyurethane market.” Its listing also repeated a forecast that China’s polyurethane market would grow about 10% annually through 2015; that was an expectation from 2006, not a current market statistic or confirmation of what later occurred. The available Chemistry World listing verifies the title, date and subtitle, but not additional details of the article. (Chemistry World, 22 August 2006)

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