Yeosu, Korea -- BASF, the worlds leading chemical company, signed a Memorandum of Agreement to expand its Yeosu facility for MDI (diphenylmethane diisocyanate).

The ceremony was attended by Park Joon-Yung, Governor of Jeollanamdo Province, Kim Chung-Seog, Mayor of Yeosu City, Wayne T. Smith, President of BASF Polyurethanes, Dr. Melanie Maas-Brunner, Senior Vice president of BASF Asia Pacific Polyurethane business and Chin-wook Cho, CEO of BASF Korea.

BASF and other companies will collectively invest a total of KRW 80 billion (approximately EUR50 M) in Yeosu Industrial Complex between 2011 and 2012, increasing the capacity of the MDI site from its current 190,000 t/a to 250,000 t/a. Around 40 new jobs will be created through the expansion.

"This investment will help us secure reliable supply to our customers not only in Korea, but also throughout the Asia Pacific region," said Wayne Smith. "It demonstrates our strong commitment to the polyurethane industry and to supporting our customers dynamic growth."

"According to our Asia Pacific Strategy 2020, we will invest EUR2.3 billion in the Asia Pacific region between 2011-2015. With this investment we are supporting the plans of Jeollanamdo Province for rapid and sustainable development. At the Yeosu site, we are producing products that help our customers increase energy efficiency and lower carbon emissions," said Albert Heuser, President, Market and Business Development Asia Pacific for BASF.

BASFs Yeosu site was established in 1998 and currently has an annual production capacity of 190,000 tons of MDI, 160,000 tons of TDI (toulene di-isocyanate) and 20,000 tons of CCD (Carbonyl Chloride Derivatives). The site employs 280 people and was designated a foreign investment area in 2000.