Dow Announces Second PMDI Capacity Increase

Dow Chemical Co. (Midland, MI) will boost capacity for polymeric methylene diphenyl diisocyanate (MDI) at Stade, Germany, by 132 million lb/yr by the end of 2001.

The announcement comes only one month after the firm said it would construct a new, 500 million lb/yr polymeric MDI plant on the US Gulf Coast and upgrade its La Porte, TX, facility. Dow estimates it will invest $325 million in the two units, which would have combined capacity of 550 million lb/yr of polymeric MDI capacity by 2004.

In December 1999, Dow announced plans to boos MDI capacity at Estarreja, Portugal, to 198 million lb/yr, from 165 million lb/yr.

"Dow plans to increase polymeric MDI capacity in Stade in response to increased market demand," says Dow business group president Bob Wood. "Our industry research shows that current market growth for polymeric MDI requires the introduction of new production plants in order to serve increased customer needs."

Built in 1992, the Stade facility was Dow's first polymeric MDI plant. The proposed increase marks its second major expansion. The increase will bring capacity to 420 million lb/yr, three times higher than the unit's original capacity.

According to Wood, polymeric MDI demand is rising 6-8%/yr. "This growth rate requires the introduction of one new production plant every one-and-one-half years," he explains.

"MDI is being seen in markets never imagined 10 years ago," adds Dow Polyurethanes VP David Fischer. "To complement its already successful use in the appliance and construction applications, we are seeing the product's increasing use in other traditional applications as well as in binders for agricultural fibers and in products such as medical gloves.

Dow plans to identify the site for the new Gulf Coast plant in the first half of 2001. In addition to adding 50 million lb/yr of new capacity, the La Porte upgrade will seek to improve unit reliability, productivity, and efficiency.