Considering that the global market for MDI will grow by about 6 percent a year, Bayer plans to boost its capacity for this component of polyurethane at two sites, taking its global MDI capacity up from 800,000 to 920,000 tons a year by 2006. Its production of aniline, a base product for the manufacture of MDI, will be expanded at Antwerp, Belgium. The MDI capacity of Bayer’s factory in Tarragona, Spain will be raised from 100,000 to 150,000 tons. At Baytown, USA, it will go up from 230,000 to 300,000 tons. As previously reported, Bayer also plans to start up production of MDI in Caojing, China in 2008, with a capacity of 230,000 tons in the first stage. Bayer’s PU operations, which will be led by Peter Vanacker, are being transferred along with others to a new subgroup of the German company called Bayer MaterialScience. The resulting consolidation of facilities and other measures caused estimated extraordinary charges totaling €2 million in Bayer’s 4th quarter, which will lead the group to post an operating loss and a net loss for the full 2003 financial year.