Bayer AG - Annual Report 2006 - Bayer to invest US$ 1.8 billion in Shanghai through 2009

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Bayer to invest US$ 1.8 billion in Shanghai through 2009

In 2006 Bayer MaterialScience commissioned several new production facilities in the Shanghai Chemical Industry Park. The plants were planned and built by Bayer Technology Services.

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In 2006 Bayer MaterialScience commissioned several new production facilities in the Shanghai Chemical Industry Park. The plants were planned and built by Bayer Technology Services.

Shanghai – At a ceremony in September 2006 attended by 500 guests from politics, industry and the media, Bayer inaugurated the new production facilities of the Bayer MaterialScience subgroup in Shanghai. “China is of central importance to Bayer in the Asia/Pacific region – both as a production base and for our business strategy,” explained Bayer AG Management Board Chairman Werner Wenning. Construction of the facilities at the Shanghai Chemical Industry Park represents a total capital expenditure volume of about US$ 1.8 billion through 2009, making it Bayer’s biggest-ever project outside of Germany.

The new plants that have come on stream add substantially to the production capacities of Bayer MaterialScience. The facilities already operating at the site are now joined by a world-scale polycarbonate production unit whose initial capacity of 100,000 tons per year is scheduled to increase to 200,000 tons by 2008. This facility is intended primarily for supplying customers in the region.

The first polyurethane facility on Bayer’s site, a splitter for crude info

MDI (diphenylmethane diisocyanate), has a capacity of 80,000 tons per year. A large-scale MDI production facility with a capacity of 350,000 tons per year, due on stream in 2008, is expected to be the largest of its kind in the world.

Inaugurated at the same time was a production unit for HDI (hexamethylene diisocyanate) with an initial capacity of 30,000 tons per year.

Bayer MaterialScience announced in February 2007 that the capacity of a planned facility for producing info

TDI (toluene diisocyanate) in Shanghai is to be raised from 160,000 to 300,000 tons a year.