Covestro plans 660 kt MDI train in Shanghai and UAE feasibility study for second world-scale plant

Program overview

Covestro announced a strategic MDI investment programme to reinforce global leadership and supply security. The programme includes preparations for a new MDI train in Shanghai and a feasibility study for a similar-scale plant in the UAE. It is supported by XRG and aims to accompany growing customer demand in the global MDI market.

China expansion

Covestro is preparing a new 660 kilotonnes-per-year MDI production train at its Integrated Site Shanghai, with start-up targeted for the end of the decade. The investment includes upstream plants and supporting infrastructure to manufacture key intermediates on site, using Covestro’s proprietary AdiP technology to reduce energy consumption.

UAE feasibility study

The UAE assessment will consider synergies in Al Ruwais Industrial City and builds on the partnership with TA’ZIZ and Fertiglobe. It will evaluate access to renewable energy and the TA’ZIZ chemicals hub’s integrated platform, including reliable local supply of chlorine and ammonia, using the Shanghai project as a blueprint.

Sustainability and market context

Both initiatives are designed to operate with net‑zero Scope 1 and 2 emissions. Covestro cites sustained demand growth for MDI—driven by building & construction, appliances, and sports and lifestyle applications—and says demand is projected to outpace capacity additions, increasing the importance of reliable large-scale supply.