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BASF shuts down Louisiana TDI plant as raw material supply disrupted

Published 02/01/2018, 10:14 AM
© Reuters.  BASF shuts down Louisiana TDI plant as raw material supply disrupted
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  • BASF (OTCQX:BASFY -1.3%) says it is temporarily shutting down a U.S. plant that makes TDI chemicals after supplies of carbon monoxide, a raw material for TDI, were disrupted at an external supplier.
  • BASF says it does not know how long production of the chemicals at the Geismar, La., plant, with production capacity of 160K metric tons/year, will be suspended.
  • Rival TDI maker Covestro (OTCPK:CVVTF) likely will benefit from the supply shortage, a Raymond James analyst says; TDI is a chemical used in the manufacture of car seats and mattresses.
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