Covestro Targets Two World-Scale MDI Investments
Covestro announced a strategic investment program aimed at expanding its global production capacity for methylene diphenyl diisocyanate, a key raw material used in polyurethane systems.
The company is preparing to construct a new MDI production train at its integrated site in Shanghai, China. The facility would have an annual capacity of 660,000 metric tons, with production expected to begin by the end of the decade.
The project will include upstream production units and infrastructure for manufacturing key intermediates on site. Covestro said the train will use its proprietary AdiP production technology to reduce energy consumption and is designed to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions during operation.
Covestro is also conducting a feasibility study for a similarly sized MDI facility in Al Ruwais Industrial City in the United Arab Emirates. The assessment will examine potential integration with the TA’ZIZ chemicals hub and access to locally supplied raw materials, including chlorine and ammonia, as well as renewable energy.
“This investment program is a clear commitment to our customers and to our long-term growth in the MDI market,” CEO Markus Steilemann said. “We see strong and sustained demand, and at the same time increasing requirements for supply reliability.”
Covestro said demand for MDI is expected to grow in applications including building insulation, appliances, and sports and lifestyle products, particularly in Asia and the Middle East. The investment program is supported by XRG, Covestro’s strategic investor.
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