US firm Huntsman is investing a combined investment of US$135 million at two of its world-scale methylene diphenyl diisocyanate (MDI) manufacturing facilities: increasing capacity at its Geismar, USA site and upgrading its downstream specialities production capability at its Rotterdam, Netherlands site.

The Geismar capacity will be increased by 50 kilotonnes to 500 kilotonnes using improved process technology developed by Huntsman. The expansion will enable Huntsman to support the growth of its key customers and leverages the significant advantages of the Geismar site, with its access to US shale gas, strong logistics base and excellent integration. The new capacity is expected to come on-stream in 2014 and will further consolidate Huntsman's position as the leading MDI producer in the Americas region.

At its Rotterdam facility, Huntsman is commissioning a new state-of-the-art MDI splitter and downstream specialties manufacturing unit that will enable Huntsman to serve customers with a full range of next-generation, differentiated polyurethane products for automotive, adhesives, coatings and other applications. The unit is designed to handle globally sourced MDI precursor and will be operational by the end of March.

Huntsman says that the benefits of US shale gas have significantly improved the economics of investing in US facilities and that it has a number of other investments planned that will take advantage of lower cost natural gas.