en.Wedoany.com Reported - Covestro has announced a strategic investment plan for diphenylmethane diisocyanate (MDI), aimed at strengthening its global market position and enhancing supply security. The plan includes preparing a new MDI production line with an annual capacity of 660,000 tons at Covestro's integrated site in Shanghai, with the facility scheduled to start up by the end of this decade. Covestro is also conducting a feasibility study for a similar-scale plant in the United Arab Emirates. The project is supported by XRG, leveraging its global chemicals platform to achieve value chain integration and enhance cross-regional supply resilience.
Dr. Markus Steilemann, CEO of Covestro, stated that this investment plan is a clear commitment to customers and the long-term growth of the MDI market, emphasizing the strong and sustained demand, as well as the increasing requirements for supply reliability. Through the planned investment, Covestro will leverage its technological and operational advantages to enhance its ability to serve customers at scale, with XRG's long-term commitment providing a foundation for project execution.
In addition to the existing major MDI units at the Chinese site, the investment also includes upstream units for on-site production of key intermediates and supporting infrastructure, forming an integrated production layout. The facility will utilize Covestro's proprietary MDI AdiP technology, which can significantly reduce energy consumption. The new MDI production line is designed to operate with net-zero greenhouse gas emissions (Scope 1 and 2).
The feasibility study for the new MDI production facility in the United Arab Emirates will evaluate synergies within the emerging ecosystem of Al Ruwais Industrial City, based on previously announced partnerships with TA'ZIZ and Fertiglobe. The facility, targeting the global market, will complement Covestro's local production model and enhance supply security for customers in all regions. The assessment will consider access to renewable energy and the integrated industrial platform of the TA'ZIZ Chemicals Hub, including reliable local supply of key raw materials such as chlorine and ammonia.
These two initiatives reflect Covestro's ambition to pursue long-term growth opportunities in the global MDI market, with a focus on discipline and sustainable value creation. As a strategic investor, XRG brings a long-term investment perspective and a global platform vision for the next phase.
