BMS to expand PC output and invest in US PU site
B
ayer MaterialScience (BMS) is planning to increase its PC capacity at its Krefeld-Uerdingen site in Germany by 20%. It is also investing US$120 million into its Baytown, Texas, site to upgrade its TDI/MDI facilities.
At its German site, it is investing EUR90 million to raise the current 330,000 tonnes capacity in four steps to reach 400,000 tonnes over the next four years. Last year, the company said it would move the headquarters of its PC business from Germany to China and invest EUR1 billion on expanding its capacity there. But the recently announced European expansion is evident that there is increased demand in Europe (the company expects a 5% growth in Europe) where the material is increasingly being used in the automotive industry.
Another reason for the strong growth in Europe is the increasing demand for technology-driven products such as in the electronic entertainment industry. One example is LCD TV screens that have to meet requirements for "eco-labels" as well as strict legal requirements with regard to flammability. There is also increasing demand for PC in other industries such as furniture and medical applications.
In addition to the expansion at the site, BMS is also currently rebuilding chlorine facilities to increase energy efficiency. The new facilities will utilise membrane technology and the company's Oxygen Depolarised Cathode (ODC) technology. Compared with the membrane technology, ODC will reduce both electricity use and indirect CO2 emissions up to 30%.
As for its planned investment in Texas it includes environmental upgrades, improvements and minor debottlenecking for its MDI and TDI production.
MDI and TDI are used to produce PUs for flexible foam for the furniture and automotive industries; rigid and spray foams for insulation in the construction industry; and coatings, adhesives, and sealants.
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