BorsodChem To Back Integrate into Aniline
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|BorsodChem eyes third quarter 2021 startup for aniline plant in Hungary|
|MOSCOW (MRC) — BorsodChem (Kazincbarcika, Hungary) is planning to start production at its new 200,000-metric ton/year aniline plant in Kazincbarcika during the third quarter of 2021, reported Chemweek with reference to market sources.|
The facility in northern Hungary has received around EUR45 million (USD53 million) in state subsidies from the Hungarian government, which were approved by the European Commission in 2018. Production was initially scheduled to start in the second quarter of next year, but progress has been delayed due to COVID-19 and other “unforeseen issues,” according to market sources.
BorsodChem is owned by China’s Wanhua Chemical Group and currently sources imports of aniline from its parent company in China. With the construction of the new unit, BorsodChem is aiming for improved integration and less reliance on imports.
“Long term, Borsodchem is planning to stop importing aniline from Wanhua Chemical Group, but when exactly the producer will be self-sufficient is not clear,” sources say. The company usually carries out maintenance at its existing methylene di-para-phenylene isocyanate (MDI) and toluene diisocyanate (TDI) units during the summer months. The startup of operations at its new aniline plant is “more likely” after the second quarter of 2021, says one industry participant.
Aniline is used in the production of MDI. BorsodChem has a production capacity for 300,000 metric tons/year of MDI at its integrated complex in Kazincbarcika. It also produces TDI, chlorine, caustic soda, and polyvinyl chloride (PVC) at the complex.
“We are not entitled to share information on the new projects, except from the already public information that BorsodChem is planning to start the aniline plant in 2021, with a maximum capacity of 200,000 metric tons/year,” BorsodChem says.
As MRC informed earlier, BorsodChem shut its PVC plant in Kazincbarcika for a scheduled turnaround in the first week of September, 2020. The restart date of this plant with the capacity of 400,000 mt/year of PVC could not be ascertained.
According to MRC’s ScanPlast report, Russia’s overall PVC production totalled 718,500 tonnes in January-September 2020, down by 0.3% year on year. At the same time, only two producers managed to increase their PVC output.
Wanhua-BorsodChem is a Hungarian chemical raw material manufacturing company headquartered in Kazincbarcika, Northern Hungary. It is the European member of the Wanhua Chemical Group. The company specializes in isocyanates (MDI, TDI), PVC and chlor-alkali (vinyl) businesses. The main production site is located in Kazincbarcika, Hungary but the production is also supported by other European production capacities located in Ostrava, the Czech Republic and Kedzierzyn-Kozle, Poland. Several branch offices are available in Hungary, Belgium, the Czech Republic, Croatia, Italy and Poland.