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Covestro announces new MDI capacity in China and feasibility study in UAE
Covestro plans to expand its MDI production with a new facility in Shanghai, China, and is exploring a second large-scale plant in the UAE. The projects aim to meet growing global demand for MDI while focusing on energy efficiency and reduced emissions.
Covestro, headquartered in Leverkusen, Germany, has unveiled plans to expand its methylene diphenyl diisocyanate (MDI) production capabilities with a new facility in Shanghai, China. The plant, designed as a world-scale production train, will add 660,000 metric tons of annual MDI capacity. The company has also initiated a feasibility study for a similarly sized MDI facility in Al Ruwais Industrial City, United Arab Emirates (UAE).
The Shanghai project, targeted for completion by the end of the decade, will be integrated into Covestro’s existing manufacturing site. It includes upstream production units and infrastructure to manufacture key intermediates on-site. The facility will employ Covestro’s proprietary AdiP technology, which aims to reduce energy consumption. Additionally, the plant is designed to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions, aligning with the company’s sustainability goals.
Meeting global demand with sustainable innovations
MDI is a critical raw material for producing rigid polyurethane foam, widely used in applications such as building insulation, appliances, and sports equipment. Covestro anticipates strong long-term demand growth for MDI, particularly in Asia and the Middle East, where demand is expected to outpace industry capacity additions. The new facilities are part of the company’s strategy to ensure reliable large-scale supply to meet this rising demand.
In the UAE, the feasibility study will assess the construction of a new MDI production train in partnership with TA’ZIZ and Fertiglobe. The project will explore opportunities to integrate the facility with the TA’ZIZ chemicals hub, leveraging renewable energy and locally available raw materials such as chlorine and ammonia. These initiatives are expected to enhance Covestro’s supply resilience and expand its global manufacturing footprint.
A focus on sustainability and innovation
The announcement comes as part of Covestro’s broader sustainability efforts. In June, the company launched the EU-funded Bio4PURConti project, which aims to develop a continuous process for producing bio-based aniline, a key intermediate for MDI. Earlier in the year, Covestro also announced an energy efficiency upgrade at its Dormagen, Germany, site, which includes the installation of a new steam compressor expected to reduce annual energy consumption by 2 % and cut over 40,000 metric tons of CO₂ emissions.
The new MDI facilities in China and the UAE underscore Covestro’s commitment to sustainable production and innovation. By employing advanced technologies and integrating renewable energy sources, the company aims to support the transition to a low-carbon economy while addressing global market demands.
