Covestro to Invest €1.5 Billion in Baytown Chemical Plant
BAYTOWN, Texas — Covestro is accelerating its investment activities to capitalize on the strong MDI market growth. The company announced a planned investment of around €1.5 billion to build a new world-scale MDI plant in Baytown, Texas. The investment at the existing site in Baytown is the largest single investment in the history of the company. Total capacity of the new train will be 500 kilotons MDI per year, and production is expected to start in 2024. At the same time an older, less efficient MDI unit of 90 kilotons production capacity will be closed. With the expansion, total MDI capacities of Covestro in the NAFTA region will reach around 740 kilotons per year making Covestro the industry capacity leader in the region by 2024.
“Demand for innovative MDI materials will continue to grow for the foreseeable future and likewise promises attractive capacity utilization rates. We have already announced a significant increase in capital expenditures, now it’s time to put it into action,” said CEO Dr. Markus Steilemann. “With the new MDI train in Baytown, we will further strengthen our global leading position in polyurethanes, even better serve our customers and create long-term shareholder value.”