Covestro Announces MDI Investment Program
Covestro recently announced a strategic methylene diphenyl diisocyanate (MDI) investment program to reinforce its global leadership position and strengthen supply security. The program includes preparations for a new MDI production train with 660 kilotonnes annual capacity at the Covestro Integrated Site Shanghai in China. The facility start-up is targeted for the end of the decade. Covestro is also conducting a feasibility study for a plant of similar scale in the United Arab Emirates. The projects are supported by XRG and highlight the benefits of its global chemicals platform, enabling integrated value chains and strengthening supply resilience across regions.
“This investment program is a clear commitment to our customers and to our long-term growth in the MDI market,” said Dr. Markus Steilemann, chief executive officer of Covestro. “We see strong and sustained demand, and at the same time increasing requirements for supply reliability. With these planned investments, we are strengthening our ability to serve our customers at scale while leveraging our technology and operational strengths. XRG’s long-term commitment provides the right foundation to execute these projects and enables us to leverage integrated value chains, strengthen supply resilience and compete at a global scale.”
In addition to the main MDI unit at the existing China site, the investment includes upstream plants and supporting infrastructure to manufacture key intermediates on site, creating an integrated production setup. The facility will use the proprietary MDI AdiP technology, which significantly reduces energy consumption. Overall, the new MDI train is designed to operate with net-zero greenhouse gas emissions (Scope 1 and 2).
The feasibility study for a potential new MDI production facility in the United Arab Emirates will assess synergies within the emerging ecosystem in Al Ruwais Industrial City, building on the previously announced partnership with TA’ZIZ and Fertiglobe. A globally oriented facility of this scale would complement Covestro's local-for-local production approach and strengthen supply security for customers across all regions. The assessment will consider access to energy from renewable sources and the integrated industrial platform of the TA’ZIZ chemicals hub, including reliable local supply of key raw materials such as chlorine and ammonia.
Both initiatives reflect Covestro’s ambition to pursue long-term growth opportunities in the global MDI market with discipline and focusing on sustainable value creation. As Covestro’s strategic investor, XRG brings a long-term investment perspective and global platform view to this next phase.
Learn more about Covestro at covestro.com.
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