The Bayer AG Board of Management has approved an investment package totalling €700 million, which Bayer MaterialScience AG will use to expand its capacities for key products. In addition to two major projects at the Caojing site in Shanghai, the investment package also includes expansion of production in the United States and refurbishment of the future Group headquarters of Bayer MaterialScience in Leverkusen.

The largest project in the package involves the establishment of a world-scale production plant for diphenylmethane diisocyanate (MDI) in Caojing near Shanghai with an annual capacity of 350,000 metric tons, which is scheduled to come online in 2008.

Approval was also granted for expansion of the polycarbonate plant currently under construction in Caojing, which will result in a total annual capacity of 200,000 metric tons. The first phase with an annual capacity of 100,000 metric tons should be available by the middle of this year and the second phase, which will add a further annual capacity of 100,000 metric tons, is planned for completion by the end of 2007. The transparent polycarbonate Makrolon is used in a number of applications including eyewear and helmets for skiers.

The MDI and polycarbonate projects are part of a larger investment programme in Caojing, some of which has already been completed.

The investment also includes the expansion of chlorine production at Bayer MaterialScience´s site in Baytown, Texas, where the intention is to increase current total annual capacity from 300,000 to 500,000 metric tons.

Chlorine is likewise an important starting chemical used in the production of polycarbonates and polyurethane components.

Finally investment will be made for refurbishment measures at the Bayer Chemical Park in Leverkusen.