In the coming months, Wanhua's BorsodChem in Hungary will commission a new TDI-2 plant and revamp the MDI-2 plant to increase capacity. Despite raw material cost challenges, the company aims to become Europe's top TDI manufacturer and the world's third largest MDI manufacturer. Shutdown for revamp may cause disruptions but is necessary for future growth.
In the coming months, two major milestones will occur at the Wanhua owned BorsodChem in Hungary.
At the end of June, our new TDI-2 plant will be commissioned with an initial capacity of 160 kt/a. This will bring the total TDI capacity of BorsodChem to 250 kt TDI and will position BorsodChem as Europe’s number one TDI manufacturer. However, due to the unfavourable raw material cost evolution, it is not expected that the full capacity will be used initially.
Furthermore, we are carrying out a major revamp of our MDI-2 plant at Kazincbarcika (Hungary) to increase its capacity from the current 150 kt to 240 kt. This major investment will further improve product quality as well as consistency and stability of supply. BorsodChem is the only European manufacturer that will increase its capacity of MDI this year and together with the 800 kt MDI capacity of its sister company Yantai Wanhua Polyurethanes, the overall Wanhua Group will advance to become the world’s number three MDI manufacturer.
In order to complete the revamp of the Kazincbarcika MDI-2 plant, we will need to shut down the plant for a period of seven weeks, starting from 22 July. Although the revamp will be carried out in a period of lower market demand, it is anticipated that it will lead to the one or other business disruption. BorsodChem will endeavour to reduce the impact as much as possible, but the available material will be on strict allocation.
We apologize that this operation will lead to some difficulties and inconveniences. However, this significant investment for future growth in production capacity, product quality and service capabilities is necessary to satisfy the anticipated needs in the polyurethanes market in the years to come.