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NewsAdhesives and Sealants TopicsAdhesives & Sealants HeadlinesRaw Materials and Chemicals

Covestro to Pause Methylene Diphenyl Isocyanate Investment Project in Texas

Covestro will continue to closely monitor the market development and will be prepared to resume the project at the appropriate time.

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January 27, 2020

Due to challenging global market conditions, Covestro reports that it has decided to delay further work on its methylene diphenyl isocyanate (MDI) plant expansion in Baytown, Texas. The investment project, known as MDI-500, will be paused for a period of 18-24 months. Covestro first announced its decision to invest in a world-scale MDI plant in Texas in late 2018. The new plant was expected to be fully operational by 2024.

According to the company, the latest decision is fully in line with its standard investment procedures, through which investment plans are regularly reviewed against the backdrop of changing economic and market conditions. While this project is temporarily on hold, the company remains firmly committed to the long-term growth potential of the MDI market and will continue to provide reliable MDI supply for its customers.

The pause neither means a cancellation of the project, nor a change in Covestro’s long-term growth strategy. The company reports that it remains committed to Baytown as the ideal location to further expand its MDI production capacities in North America. Covestro will continue to closely monitor the market development and will be prepared to resume the project at the appropriate time.

Find more information, visit www.covestro.us.

KEYWORDS: general business resins and base polymers

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