LEVERKUSEN, Germany - The Bayer AG board of management has approved an investment package totaling €700 million, which Bayer MaterialScience AG, Leverkusen, Germany, will use to expand its capacities for key products. In addition to two major projects at the Caojing site in Shanghai, the investment package also includes expansion of production in the United States and refurbishment of the future Group headquarters of Bayer MaterialScience in Leverkusen.

The largest project in the comprehensive package involves the establishment of a world-scale production plant for diphenylmethane diisocyanate (MDI) in Caojing near Shanghai with an annual capacity of 350,000 metric tons, which is scheduled to come online in 2008.

Approval was also granted for expansion of the polycarbonate plant currently under construction in Caojing. The transparent polycarbonate Makrolon brand is used in a number of high-quality applications, including car glazing.