BASF is Shutting Down Its Toluene Diisocyanate (TDI) Plant in Germany
BASF is Shutting Down Its Toluene Diisocyanate (TDI) Plant in Germany

BASF is Shutting Down Its Toluene Diisocyanate (TDI) Plant in Germany

  • 27-Feb-2023 3:52 PM
  • Journalist: Francis Stokes

BASF, one of the world's largest chemical companies, has announced that it is shutting down its Toluene Diisocyanate (TDI) plant in Ludwigshafen, Germany. This news has sent shockwaves throughout the industry, as BASF is one of the major suppliers of TDI. This closure could have implications for the industry, as it will affect the availability of TDI and possibly lead to higher prices. It is yet to be seen how this decision will affect the European markets.

TDI is an organic compound commonly used to manufacture Polyurethane foam and other plastic products. It is one of the most widely used isocyanates and is essential for producing products such as mattresses, couches, and insulations.

The economic performance of the Ludwigshafen TDI complex has not lived up to expectations due to underutilization. The sharp increase in the cost of energy and utilities has made the situation even worse.

The shutdown of BASF's TDI plant will significantly impact the European chemical industry. As TDI is an important intermediate used in the production of Polyurethane products, its absence could cause a shortage in the market. This may affect the production of many everyday items, such as furniture, insulation materials, and automotive components.

However, TDI will continue to be supplied to European customers by BASF from its global production network, which includes plants in Geismar, Louisiana; South Korea, Yeosu; and China's Shanghai.

In addition to the shortage of TDI, there could also be environmental implications from the plant's closure. The plant has long been one of the largest sources of emissions of Carbon Dioxide. Its closure will reduce emissions and help improve air quality in the region.

Furthermore, the shutdown of the plant could also lead to a decrease in employment. The plant employs numerous people directly, and the local economy could take a hit from their absence.

As on 24th February 2023, the cost of TDI stood at about USD 4,130 per MT for T80 grade on FD – Hamburg basis.

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