BAYER MATERIALSCIENCE INCREASES MDI CAPACITY

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BAYER MATERIALSCIENCE INCREASES MDI CAPACITY
13 January 2004 - Bayer MaterialScience AG

Bayer MaterialScience, a subgroup of Bayer AG, plans to increase capacity for the polyurethane raw material MDI (diphenyl methane diisocyanate) at its sites in Tarragona, Spain, and Baytown, Texas. The production of aniline, a base product for the manufacture of MDI, in Antwerp, Belgium, is to be expanded at the same time.

Bayer MaterialScience is the world’s leading manufacturer of polyurethane raw materials. The company currently has a global MDI capacity of around 800,000 tons/year and plans to increase this by 120,000 tons to a total of some 920,000 tons/year by 2006. Bayer currently produces MDI at seven sites throughout the world. An eighth facility at Caojing, Shanghai (China), is in the final planning stage.

In Baytown, the company plans to expand its MDI capacity from its present level of 230,000 tons/year to 300,000 tons/year. Annual MDI capacity in Tarragona is also scheduled to increase from 100,000 to 150,000 tons by 2006. This will necessitate an expansion in aniline production at the Antwerp site in Belgium over the same period.

In addition to these expansions, Bayer MaterialScience also recently announced plans to add MDI capacity in Caojing, China, in two stages. Work is due to begin shortly on the construction of a facility for the production of polymeric and monomeric MDI from crude MDI, which should be completed by 2006. Production start-up for MDI is scheduled for 2008 with an annual capacity of 230,000 tons.

'We expect the MDI market to grow at around 6 percent a year – twice the rate of the global GDP,' said Peter Vanacker, designated head of the Polyurethanes Business Unit of Bayer MaterialScience. 'These expansions in MDI capacity will allow us to maintain our global leadership in this important product area and support our long-term goal of remaining the preferred supplier of MDI raw materials for our customers throughout the world.'

MDI is an important chemical constituent in the production of polyurethane foams and elastomers. Rigid foams, for example, are used in the manufacture of refrigerator and freezer cabinets, as thermal insulation in the construction industry and in district heating systems. Elastomers find application in the footwear, automotive and electronic industries.

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About: Bayer MaterialScience AG
Bayer Corporation, headquartered in Pittsburgh, is part of the worldwide Bayer Group, an international health care, nutrition and innovative materials group based in Leverkusen, Germany. Bayer employs 23,300 in North America with net North American sales of 8.8 billion euros in 2003. Bayer’s three operating business areas – HealthCare, CropScience and MaterialScience, improve people’s lives through a broad range of essential products that help diagnose and treat diseases, protect crops and advance automobile safety and durability.

Bayer MaterialScience AG is one of the world's largest producers of polymers and high-performance plastics. The main customers for Its innovative developments in coatings, adhesives, insulating materials and sealants, polycarbonates and polyurethanes are the automotive and construction industries, the electrical/electronics segment and manufacturers of sports and leisure goods, packaging, and medical devices.

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