Covestro, one of the world’s largest polymer companies, has focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. With the strong MDI market growth, Covestro accelerates its investment in the sector. The Supervisory Board of Covestro has taken a decision to invest around EUR 1.5 billion to build a new world-scale MDI plant of 500 kilotons in Baytown, USA. With this investment at the existing site in Baytown, Covestro has taken the largest single investment decision in its history. The start of production of the new train of 500 kilotons per year is expected in 2024.
Covestro has also decided to close down an older, less efficient MDI unit of 90 kilotons production capacity at the same time as that of the start of the production from the new plant. Covestro will reach total MDI capacities to around 740 kilotons per year by the year 2024, making it the industry capacity leader in the region.
Dr. Markus Steilemann, CEO, Covestro, said, “Demand for innovative MDI materials will continue to grow for the foreseeable future and likewise promises attractive capacity utilization rates. We have already announced a significant increase in capital expenditures, now it’s time to put it into action. With the new MDI train in Baytown, we will further strengthen our global leading position in Polyurethanes, even better serve our customers and create long-term shareholder value.”
MDI, a predecessor of rigid foam, is an excellent insulation material and is used in buildings and refrigerators. The expected global MDI demand growth is approximately equivalent to one additional world-scale plant per year.