Huntsman said its new 400,000 t/yr methylene diphenyl diisocyanate (MDI) plant in Caojing, China, is nearing completion and is on track to begin commercial operations in the first quarter of 2018.
The project, a joint venture with a group of Chinese companies, will help meet growing MDI demand in the region, he said. MDI is used in the manufacture of polyurethanes.
"We certainly are starting to bump up against capacity constraints, and if we had the volume we would be able to sell it into the market place," , chief executive Peter Huntsman said on an earnings call. He estimated global MDI operating rates in the low 90pc range.
The Woodlands, Texas-based company saw stronger year-over-year sales in its overall polyurethane segment during the second quarter, driven by higher sales prices that offset lower volumes due to maintenance in Europe.
"End market demand for MDI remains strong," Huntsman said. "We expect our own growth to be positive next quarter now that we have our main maintenance activity behind us."
Polyurethane sales rose from $976mn to $1.02bn year-over-year, although sales volume fell 8pc year-over-year.
Overall the company reported profits more than doubled year-over-year to $183mn in the second quarter.
Huntsman is spinning off its pigments and additives business into a new company, Venator, which launched its initial public offering earlier this week. Huntsman's acquisition of Clariant is on track to close in late December or early January.
