Capitalizing on the widening availability of shale-gas derived feedstock, Huntsman is doubling MDI output at Geismar, Louisiana, by 400,000 t/y up to 2018.

In a preliminary step, the company has begun engineering work on an interim expansion to add 50,000 t/y by next year, lifting output to 500,000 t/y. When construction is complete, output capability will rise to 950,000 t/y.

"Shale gas has significantly improved the economics of investing in US facilities and has helped our Geismar facility to establish a strong cost leadership position," said Anthony P. Hankins, president of Huntsman Polyurethanes.

"The planned additional capacity will reinforce this position and establish the plant as a truly global supplier Hankins added.

With demand for MDI-based polyurethanes seen as growing at around 8% annually, Huntsman is investing in new upstream and downstream capacity at several locations."

The company's Geismar site is regarded as the US market's largest integrated producer. It also operates world-scale MDI plants at Rotterdam in the Netherlands, along with its joint venture with BASF at Shanghai, China.

In the first quarter of 2015, the doubling of output at the Shanghai jv to 480,000 is planned to be completed.