Baytown, Texas – Covestro is delaying further work on the expansion of its MDI plant in Texas. The MDI-500 project will be paused for 18-24 months.
The company cites ‘challenging global market conditions’ for the hiatus. However, it stresses that there are no plans to exit the MDI market, and the project has not been cancelled.
‘The decision is fully in line with Covestro’s standard investment procedures, through which investment plans are regularly reviewed against the backdrop of changing economic and market conditions,’ the company said in a statement. ‘While this project is temporarily on hold, the company remains firmly committed to the long-term growth potential of the MDI market and will continue to provide reliable MDI supply for its customers.’
The decision to build the plant was first announced in late 2018. It was slated to be fully operational by 2024. Covestro added that it remains committed to Baytown as the ‘ideal location’ for the expansion of its North American MDI capacity.
