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BASF and Dow to Conduct Joint Feasibility Study for World-Class TDI Facility in Europe


LUDWIGSHAFEN, Germany; MIDLAND, Mich. – (November 21, 2006) – BASF Aktiengesellschaft (BASF) and The Dow Chemical Company (Dow) today announced their decision to conduct a joint feasibility study for the construction of a state-of-the-art production plant for toluene diisocyanate (TDI) and precursors at one of their integrated sites in Europe. The plant would have an annual capacity of 300,000 metric tons and would be the world’s largest such facility ever built. The study will take into consideration factors such as location, technology and infrastructure. Should the project prove viable, the facility would start operations in 2011.

“Although this is an early-stage feasibility study, we believe that the world’s top two chemical companies can create a world-class TDI facility that has outstanding economic and technological competitiveness,” said Pat Dawson, business vice president, Dow Polyurethanes. “This facility would support the future growth plans of Dow’s performance businesses, while ensuring our competitiveness to meet increasing customer demand for TDI in Europe.”

“With this approach BASF solidifies its commitment to the global TDI market by evaluating additional production capabilities,” said Jacques Delmoitiez, president of BASF’s Polyurethanes division. “By combining the strengths and expertise of both companies, we continue to improve our ability to serve the needs of our customers and thus helping them to be more successful.”

Following the joint development of a process to produce propylene oxide on the basis of hydrogen peroxide (HPPO technology), this current venture is the second recent cooperation between Dow and BASF that focuses on the polyurethanes industry. In September 2006, Dow and BASF held a groundbreaking ceremony for their first world-scale HPPO plant at BASF’s site in Antwerp, Belgium. Dow and BASF are considering the development of additional HPPO projects in other regions, including Asia.

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