June 30, 2026 12:18

Chemical group Covestro’s future MDI plants will be built in China and, potentially, in the United Arab Emirates (UAE).

The investment in Asia has already been defined, while a feasibility study has been launched for the UAE project, building on the existing partnership with TA’ZIZ and Fertiglobe.

The plan, backed by new controlling shareholder XRG, aims to secure long-term supplies of methylene diphenyl diisocyanate, used in the production of polyurethane foams, adhesives, sealants and coatings.

“The planned expansion in China and the feasibility study in the UAE show how we are targeting opportunities to strengthen supply resilience, enhance competitiveness and support customers over the long term,” said Markus Steilemann, CEO of Covestro (pictured). “XRG’s long-term commitment provides the right foundation to execute these projects and enables us to leverage integrated value chains, strengthen supply resilience and compete at a global scale.”

The Chinese plant will be built at the Covestro Integrated Site Shanghai, with annual production capacity of 660,000 tonnes and start-up planned by the end of this decade.
The plant will use Covestro’s proprietary AdiP technology, which the company says significantly reduces energy consumption. The new line is designed to operate with net-zero greenhouse gas emissions for Scope 1 and 2.
The investment extends beyond the MDI line to include upstream plants and supporting infrastructure to manufacture key intermediates on site, creating an integrated setup. 

At the Shanghai site, Covestro completed a debottlenecking project at its toluene diisocyanate (TDI) plant in February, increasing production capacity from 310,000 to 370,000 tonnes per year.

The feasibility study for a new production plant in the United Arab Emirates will assess potential synergies within the Al Ruwais Industrial City ecosystem and will be aligned with Covestro’s local-for-local production approach. The assessment will consider access to renewable energy and the integrated industrial platform of the TA’ZIZ chemicals hub, including the supply of key raw materials such as chlorine and ammonia. A potential investment would build on the project blueprint developed for the Shanghai site.

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