Expansions: Sika expands adhesives/sealants output in India; BASF expands US capacity for MDI by one-third

Swiss speciality chemicals firm Sika is opening a new technology centre and manufacturing plant for adhesives and sealants in Pune, a city in the federal state of Maharashtra. Developments at the new R&D laboratories and the production in the new plant are aimed at meeting the rapidly growing demand in the Indian market. On its three new production lines, Sika mainly manufactures products for the transportation, construction, and renewable energy sectors.

Situated 100 km southeast of the port of Mumbai, Pune is one of India’s main industrial centres. The city and its agglomeration represent more than 8 million people. Vehicle manufacturers and automotive suppliers in particular have settled in Pune and nearby in the state of Maharashtra. The new Sika site at one of the region’s key logistics hubs is ideally located in terms of transportation infrastructure, ensuring rapid and reliable deliveries to customers.

Morten Muschak, Corporate Target Market Manager Industry: "This latest investment in India allows us to further strengthen our position in the country’s construction and industrial sectors. By expanding our own production and R&D facilities at this site, we can develop our local expertise and generate huge benefits for our customers. Customer-specific solutions can be developed, produced, and delivered within a very short period of time. Sika is laying the foundations for our long-term expansion and development in this key market."

Both the building industry and the automotive sector in India are benefiting from dynamic economic growth and ongoing urbanization as well as from favourable government investment policies. India is now the world’s fifth biggest market for cars. The construction industry is expected to grow by an average of 6.5% per annum from now until 2030. Annual growth in the automotive sector in the same period should exceed 10%.

In other news, German chemicals company BASF is to increase the methylene diphenyl diisocyanate (MDI) capacity at its site in Geismar, Louisiana. Over time, BASF plans to double the capacity from 300,000 to approximately 600,000 tonnes/year.

“This investment in the attractive North American MDI market strengthens our position as a leading MDI supplier in North America as well as globally,” said Dr. Ramkumar Dhruva, President of Monomers Division.

“The Geismar site is ideally suited for this investment thanks to its existing infrastructure, competitive raw materials and ongoing strong business support from state and local government,” said Stefan Doerr, Senior Vice President, Monomers North America. “With this integrated facility, BASF will continue to support the growth of our North American MDI customers.”

The first phase involving the construction of a new MDI synthesis unit has been in operation since October of last year. The second phase, which started up recently, expanded several existing upstream units and increased the overall MDI output of the Geismar complex by approximately one third.

Engineering for the final phase of the MDI expansion is progressing on schedule. This final phase of the expansion project, which includes several new upstream units, is targeted to be complete by the middle of the decade, with resulting total MDI capacity of approximately 600,000 tonnes/year.

(PRA)

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