Covestro: Strategic investment program to expand global MDI capacity

Covestro has announced a strategic investment program for MDI (methylene diphenyl diisocyanate). The company plans to build a new world-scale MDI plant at its integrated site in Shanghai and conduct a feasibility study for a second facility in the United Arab Emirates. With these projects, Covestro aims to expand its global production footprint and strengthen long-term supply security in a growing market.

The new Shanghai plant is designed for an annual capacity of 660 kilotonnes and is scheduled to come on stream by the end of this decade. In addition to MDI production, the project includes new facilities and infrastructure for key precursor materials. The plant will utilize Covestro's proprietary AdiP technology, which reduces production energy consumption. Covestro aims to achieve operational climate neutrality for Scope 1 and Scope 2 greenhouse gas emissions at the facility.

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At the same time, Covestro is conducting a feasibility study for another MDI plant of similar scale in Al Ruwais Industrial City in the United Arab Emirates. The project builds on the company's existing partnership with TA'ZIZ and Fertiglobe. The study focuses on synergies within the emerging industrial cluster, access to renewable energy sources, and integrated feedstock supply, including chlorine and ammonia. The proposed facility would be based on the same technical concept as the planned plant in China.

The investments are driven by expectations of continued growth in global MDI demand. Key growth drivers include energy-efficient buildings, modern household appliances, and applications in the leisure and consumer goods sectors. Covestro expects demand growth to outpace the expansion of global production capacity, with particularly strong market development in Asia and the Middle East.

Through these investments, Covestro aims to complement its global production network across Europe, Asia, and North America while ensuring long-term supply security for its customers. Both projects are supported by XRG as a strategic investor. The company considers this partnership a foundation for expanding integrated value chains.

More information: www.covestro.com

Covestro AG, Leverkusen

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