New BorsodChem Plant to Come Online in 2011

China's Wanhua Industrial Group, minority owner of BorsodChem, said a new isocyanate plant set to come online next year could improve the indebted Hungarian chemicals group's profitability, newspaper Nepszabadsag reported.

Wanhua, the largest isocyanate producer in the Asia Pacific region, bought a 38 percent stake in First Chemical Holding -- the holding company of BorsodChem -- for € 140 million  ($180 million) in June with a call option for the remaining shares.

BorsodChem said at the time it would use the funding to complete construction of its new TDI 2 (Toulene di-isocyanate) plant and a nitric acid plant as well as for general corporate purposes. Nepszabadsag cited a Wanhua executive on Wednesday as saying the TDI 2 plant could be completed in the first half of 2011 which could help BorsodChem, one of the largest employers in eastern Hungary, improve its profitability.

"(The plant) will make BorsodChem the most cost-efficient TDI maker in Europe, which will greatly improve its profitability," Wanhua vice-chairman in charge of international investments Howard Ding told the newspaper in an interview.

Wanhua, which wants to become a major supplier in Europe, will probably make further investments into BorsodChem, Ding said, without elaborating on the amount or the time frame.