Yantai Wanhua to overhaul MDI facility.

On March 16th, 2007 Yantai Wanhua Polyurethanes Co., Ltd. (Yantai Wanhua, SH: 600309), a global leading diphenylmethane diisocyanate (MDI) producer, announced that it plans to adjustment its downtime for MDI facilities. It intends to overhaul its MDI facilities in May for ten days and halt production in the second half of 2007 to overhaul facilities completely, because MDI in Chinese market is in short of supply now. Located in Yantai, Shandong province, Yantai Wanhua has two MDI production lines with the total capacity of 280 000 t/a.

Shanghai Lianheng Isocyanate Co., Ltd., another main MDI manufacturer in China, a joint venture funded by BASF, Huntsman, Shanghai Huayi (Group) Company, Sinopec Shanghai Gaoqiao Petrochemical Corporation and Shanghai Chlor-Alkali Chemical Co., Ltd., reportedly ceased manufacturing operations of crude MDI in December 2006 and resumed operation in February 2007. It has resulted in a deficit of MDI supply in Chinese market. Seated in Shanghai Chemical Industrial Park, Shanghai Lianheng has a crude MDI capacity of 240 000 t/a.