Covestro: Strategic investment program to expand the global MDI capacite?

Share:

Covestro has announced a strategic investment program for MDI (methylene diphenyl diisocyanate). The construction of a new large-scale MDI plant at the integrated site in Shanghai and a feasibility study for a second plant in the United Arab Emirates are planned. With the projects, the company wants to expand its global production base and strengthen long-term security of supply in a growing market.

The new plant in Shanghai is expected to reach an annual capacity of 660 kilotons and will be operational by the end of this decade. In addition to MDI production, the project also includes additional systems and infrastructure to crucial preliminary items. The company's own "AdiP" methodology is utilized, which reduces the energy standards of production. Covestro is aiming to an operationally climate-neutral greenhouse gaseous stability (Scope 1 and 2) to operate the plant.

At the same time, as part of a feasibility study, Covestro is investigating the construction of another MDI plant of comparable size in Al Ruwais manufacturing City in the United Arab Emirates. The project is based on the existing partnership with TA'ZIZ and Fertiglobe. The study focuses on synergies within the emerging manufacturing cluster, access to renewable energy sources and the integrated supply of raw materials such as chlorine and ammonia. The project would be based on the technical concept of the planned plant in China.

The background to the investments is the expected sustained increase in global demand to MDI. development drivers are in particular energy-efficient buildings, modern domestic appliances and applications in the leisure and consumer goods sector. Covestro expects demand development to surpass the expansion of global production capacities. The markets in Asia and the Middle East are developing particularly dynamically.

With the investments, Covestro wants to supplement its global production structure in Europe, Asia and North America and secure the supply of its customers in the long term. Both projects are supported by XRG as a strategic investor. The company sees this as a basis to expanding integrated value chains and further strengthening its competitive position in the global MDI market.

Previous

Finland's Neste to invest $470 mn in Porvoo refinery Jun 30, 2026

Next

Covestro to build new MDI plant in China, eyes second facility in UAE

Quick inquiry

Create

Inquiry Sent

We will contact you soon