Leverkusen, Germany – Covestro has put its plans for a new world-scale MDI plant on hold. It cites the European energy crisis, the war in Ukraine and the weakening global economy as the reasons for its decision.
This is not the first time its plans for a new MDI plant have been suspended, with the expansion of its MDI production in Texas put on hold in early 2020. When its plans to increase MDI capacity resumed in September 2021, Covestro said it was considering both the US and China as potential locations.
‘We must ensure that we make the best decision for the company economically and strategically,’ said CEO Markus Steilemann. ‘Thus, we pause the project for the moment and reassess it at a later time.’
He stressed that in the long term the company foresees significant growth in MDI, driven by trends towards energy-efficient construction. ‘[We] want to profit from this demand as a leading company in the global market,’ he said. ‘We will also continue to invest in growth opportunities in all regions of the world.’