Covestro has announced plans to expand its MDI production capacity in China and also undertaking a feasibility assessment for a potential project in the UAE.

Covestro has unveiled a strategic investment programme aimed at strengthening its position in the global MDI market and ensuring long-term supply reliability for customers. The initiative includes plans for a new MDI production train with an annual capacity of 660 kilotonnes at its integrated manufacturing site in Shanghai, China, with operations expected to commence towards the end of the decade. Additionally, the company is undertaking a feasibility study for a similarly sized facility in the United Arab Emirates. Supported by XRG, these projects reflect Covestro's long-term growth strategy and are intended to enhance supply chain resilience through a more integrated global production network.

Dr. Markus Steilemann, Chief Executive Officer of Covestro, said that "the investment programme demonstrates the company's commitment to both its customers and its long-term growth ambitions in the MDI market. He noted that robust demand and rising expectations for supply reliability are driving the need for additional capacity. The planned investments are expected to enhance Covestro's ability to meet customer requirements on a larger scale while capitalising on its technological expertise and operational capabilities. He further highlighted that XRG's long-term support provides a strong foundation for the successful execution of these projects, enabling the company to optimise integrated value chains, strengthen supply resilience, and enhance its competitiveness in the global market."

Source: Covestro