Huntsman has commissioned engineering design studies to potentially expand methylene diphenyl diisocyanate (MDI) capacity at its site in Geismar, Louisiana, the US-based chemicals major said Thursday.

The company said it is studying several options to expand the Geismar facility, thereby allowing it to meet strong demand in residential and commercial insulation and to maintain Huntsman’s position as a leading MDI supplier in the Americas region.

“With the benefits of US shale gas, the economics of investing in our US facilities has improved significantly,” said Anthony P. Hankins, president of Huntsman Polyurethanes.

“The global market for MDI urethanes is expected to continue to grow strongly well into the next decade, and the proposed investment in the United States will complement our previously announced planned expansion in China,” he added.

The company did not disclose a timetable for completion of the study or a final investment decision.

Huntsman’s polyurethanes division operates world-scale MDI facilities in Geismar as well as Caojing, Shanghai, and Rozenburg, Rotterdam.