German chemicals group BASF AG said it is considering building a new diphenylmethane diisocyanate (MDI) plant in the southwestern Chinese municipality of Chongqing.

The plant is expected to have annual capacity of 400,000 metric tons of crude MDI, with production to begin in 2010.

Financial details of the proposed plant were not provided.

MDI is a precursor in the manufacture of polyurethanes - polymers that are used in the automotive and construction industries, in appliances such as refrigerators, and in footwear.