Kumho Mitsui Chemicals Launches 500 Billion KRW MDI Expansion at Yeosu Plant

Upon Completion of Expansion, Becoming the World's 4th Largest MDI Manufacturer Based on a Single Factory

On Yong-hyun, CEO of Kumho Mitsui Chemicals (right), and Kim Min-chul, Vice President of POSCO Engineering & Construction (left), are posing for a commemorative photo after signing the contract for the comprehensive construction project to expand MDI by 200,000 tons. Photo by Kumho Mitsui Chemicals

[Asia Economy Reporter Donghoon Jeong] Kumho Mitsui Chemicals announced on the 7th that it will begin expanding its production capacity of Methylene Diphenyl Diisocyanate (MDI) by 200,000 tons. The day before, Kumho Mitsui Chemicals signed a comprehensive construction contract for the MDI expansion project with POSCO Engineering & Construction.

MDI is a key raw material for polyurethane used in furniture, insulation materials, automotive interiors, memory foam, and liquefied natural gas (LNG) carriers. Its applications are gradually expanding from everyday life to various industrial sectors.

With this contract, Kumho Mitsui Chemicals takes the first step to increase the annual production capacity of its Yeosu plant in the Yeosu National Industrial Complex from 410,000 tons to 610,000 tons. POSCO Engineering & Construction will be responsible for the construction, which is scheduled to proceed from next month until the first half of 2024.

The total investment for the MDI expansion by Kumho Mitsui Chemicals amounts to 500 billion KRW. Currently the number one domestic company in the polyurethane market for MDI, Kumho Mitsui Chemicals will become the world's fourth largest single-plant producer upon completion of the expansion.

Eco-friendly recycling facilities will also be introduced to reduce by-products and wastewater generated during the MDI production process using chlorine and hydrogen, and reinject them as raw materials. Kumho Mitsui Chemicals plans to apply raw material recycling technology to prevent environmental pollution while increasing the self-sufficiency rate of raw materials.

On Yonghyun, CEO of Kumho Mitsui Chemicals, stated, "We will accelerate ESG (Environmental, Social, and Governance) management by applying our self-developed eco-friendly raw material regeneration technology to the MDI production process."

This content was produced with the assistance of AI translation services.