Covestro plans new China MDI unit, studies second plant in UAE

Leverkusen, Germany – Covestro is planning to build a new "world-scale" MDI production train in China and has launched a feasibility study for a second plant in the United Arab Emirates as it seeks to expand capacity in the growing global polyurethane market.

The programme includes a 660ktpa MDI production train at the company's integrated site in Shanghai, with start-up targeted by the end of the decade.

Covestro is also assessing the feasibility of a plant of similar scale in the UAE, building on its previously announced partnership with Ta'ziz and Fertiglobe.

In a 30 June statement, Covestro said long-term demand for methylene diphenyl diisocyanate (MDI), a key raw material for polyurethane rigid foams, is expected to continue growing.

The growth, it said, is driven by applications in construction, household appliances and sports products and is forecast to outpace new capacity additions.

The German supplier said both projects are designed to achieve net-zero operational greenhouse gas emissions (Scope 1 and 2) and are supported by strategic investor XRG.

"We see strong and sustained demand, and at the same time increasing requirements for supply reliability," said chief executive officer Markus Steilemann.

With the planned investments, he said, Covestro is "strengthening our ability to serve our customers at scale while leveraging our technology and operational strengths."

The planned Shanghai expansion will include upstream production units and supporting infrastructure, creating an integrated manufacturing complex using Covestro's proprietary AdiP technology.

In the UAE, the feasibility study will examine opportunities within the Ta'ziz chemicals hub in Al Ruwais Industrial City, including access to renewable energy and locally sourced raw materials such as chlorine and ammonia.

With the projects, Covestro is "targeting opportunities to strengthen supply resilience, enhance competitiveness and support customers over the long term," Steilemann said.