Covestro’s CEO, Markus Steilemann, on Tuesday said that his company is reconsidering the final location of its planned methylene diphenyl diisocyanate (MDI) plant. The company initially planned to build the 500,000 tons/year facility at its complex in Baytown, Texas, but it was suspended in January 2020 due to challenging global market conditions. Now, Covestro eyes China as an alternative due to a significant increase in construction costs in the US which could lead to a lower return on capital employed (ROCE) than initially anticipated.
Steilemann said Covestro’s existing methylene diphenyl diisocyanate (MDI) units are already running at full capacity. Meanwhile, the completion of its methylene diphenyl diisocyanate (MDI) project in Tarragona, Spain, was pushed back from 2022 to 2025. As a result, the company is struggling to keep up with growing demand. He said that a decision would be announced at the next stage of project development, with the plant commissioning expected in 2026
