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Huntsman suspends work on planned Dutch plant

February 16, 2009
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The Associated Press reports that Huntsman has suspended work on design and feasibility studies for its planned investment in a new methylene diphenyl diisocyanate (MDI) plant at its site in the Netherlands, as the downturn in the global economy limits demand MDI-based polyurethanes. MDI is a key raw material for the polyurethane industry, which make the building blocks for thousands of everyday items such as tires, adhesives and upholstery. Huntsman said the work, which includes preliminary engineering for the planned 400,000 metric tons capacity unit in Rozenburg, the Netherlands, will be halted at a stage to allow quick and efficient re-engagement at a future date. Until then, all third party work on the project will be suspended. Huntsman began increasing its global production capacity for MDI in 2005 by working to expand its facilities. At the time the company planned to expand the Rozenburg plant by 220 million pounds per year to 880 million pounds per year. The company will continue its internal evaluation of the potential construction of another MDI unit in China, with a number of different options under consideration.
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