Hungarian chemicals company BorsodChem, a unit of China's Wanhua Industrial Group, on Monday said it started test production at its new toluene diisocyanate (TDI) plant.
Wanhua made EUR 80m available to BorsodChem to restart construction of the TDI-2 plant last autumn.
The new plant adds an annual 160,000 tons to BorsodChem's existing TDI capacity, and production at the new plant could be boosted to 200,000 tons later, depending on demand.
BorsodChem's total annual TDI output will rise to 250,000 tons after the two-month test production phase winds up, making the company the biggest maker of TDI in Europe.
BorsodChem is also expanding its capacity for methylene diphenyl diisocyanate (MDI), which is also used to make polyurethanes, this year. Together with the 800,000-tonne annual MDI capacity of group member Yantai Wanhua Polyurethanes, Wanhua is the world's third-biggest maker of MDI.
BorsodChem's MIDI-2 plant will shut down from seven weeks from July 22 to undergo developments.
BorsodChem had revenue of EUR 750m in 2010.