Covestro to build new MDI plant in China and study UAE facility

German chemicals giant Covestro has announced plans to construct a new “world-scale” methylene diphenyl diisocyanate (MDI) production train at its integrated site in Shanghai, China, with a capacity of 660 kilotons per annum (ktpa). The project, targeting startup by the end of the decade, will include upstream production units and supporting infrastructure, forming an integrated manufacturing complex using Covestro’s proprietary AdiP technology. The company also revealed it is conducting a feasibility study for a second “world-scale” MDI plant in the United Arab Emirates, specifically within the Ta’ziz chemicals hub in Al Ruwais Industrial City. This potential UAE facility would leverage access to renewable energy and locally sourced raw materials such as chlorine and ammonia. Both projects are designed to achieve net-zero operational greenhouse gas emissions (Scope 1 and 2) and are backed by strategic investor XRG. Covestro cited strong and sustained demand for MDI, driven by applications in construction, household appliances, and sports products, which is expected to outpace new capacity additions. The expansion aims to enhance supply reliability, competitiveness, and long-term customer support. Chief executive officer Markus Steilemann stated, “We see strong and sustained demand, and at the same time increasing requirements for supply reliability.” The company emphasized that the investments will strengthen its ability to serve customers at scale while leveraging its technology and operational strengths.