Covestro to Continue Tarragona Production

Investment and Production Enhancements

Materials manufacturer Covestro announced an investment of around EUR 200 million to continue and enhance production at its Tarragona site in Spain beyond 2020. The investment aims to increase cost competitiveness through various measures, including the construction of an independent chlorine supply.

Chlorine Supply and MDI Capacity

As a first step, Covestro plans to build its own chlorine supply by the end of 2020, ensuring a highly efficient and sustainable source of this crucial raw material. Additionally, the company will debottleneck its local MDI plant, increasing production capacity by 50,000 metric tons to approximately 220,000 metric tons per year. MDI is a key precursor for rigid foam used in insulation materials for buildings and refrigerators.

Project Timelines

Debottlenecking efforts are scheduled to be completed by 2022, while the new chlorine production facility is expected to start operations by the end of 2020. Until then, external sources will supply the necessary chlorine. Covestro plans to use state-of-the-art, energy-efficient technology for the new chlorine production, enhancing overall production efficiency.

Global Growth Strategy

This investment aligns with Covestro's long-term investment strategy and smart capex approach to extend capacities. It supports the company's global growth strategy by meeting the anticipated increase in MDI demand and leveraging its existing global production network. Covestro is also doubling its MDI production capacity at its Brunsbuettel site in Germany to 400,000 metric tons annually by the end of 2018.