Bayer to close Brazil MDI, polyether polyols plant for economic reasons
3/5/2015 12:00:00 AM
Bayer MaterialScience (BMS) plans to cease production of methylene di-p-phenylene isocyanate (MDI), polyether polyols and raw materials at its Belford Roxo site in Brazil in July 2015, the company announced this week.
The move will remove 55,000 tpy of MDI production from the market, according to the company announcement.
Additionally, around 15,000 tpy of polyether polyols and a small unit making raw materials for the coating industry will close at the same time, the company said.
Bayer added that internal analysis shows it is too expensive to make these products in Belford Roxo compared to other sites.
Around 320 employees will be affected by the closure, and Bayer says it is working with Bayer CropScience and Bayer HealthCare to transfer as many workers as possible to other divisions.
BMS said it is working with the local works councils and trade unions on severance packages for the remaining workers.
The Belford Roxo plant opened in 1983, and had capacity of 45,000 tpy of MDI and a splitter with capacity of 13 tpy as of 2005. At that time Bayer was considering a boost in MDI for Brazil by adding a further 10,000 tpy of capacity.
Bayer was importing around 10,000 tpy of TDI into Brazil and an equivalent amount of polyols. At the time, it was the only isocyanate producer on the continent.
BMS says it now has "no further MDI production in Latin America."
"Bayer MaterialScience operates globally, so deliveries can be made from several sources," the company said in its statement. "We will continue to serve local customers."
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