Europe's second-biggest chemicals producer, Bayer AG, wants to borrow as much as US$800 million to build plants in China, Bloomberg reported. The Germany-based company plans to spend US$1.8 billion over three years on facilities in Caojing, China's largest chemical industry park. This will see production of MDI for polyurethanes rise to 350,000 tonnes per year from 230,000 tonnes and polycarbonate output reach 200,000 tonnes per year by 2007. The company is increasing production in China to meet demand for chemical products used in cars and building insulation in the Asia-Pacific region. It claims to already control a quarter of Greater China's polycarbonate market, with global demand for the product expected to grow 8-10% a year over the next few years. Bayer targets annual sales of US$1 billion from its China trading unit in five years.
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