9 October 2018
DETAILS
* Highly attractive MDI market with long-term growth prospects /
* New 500 kilotons MDI plant to satisfy demand
and accompany industry growth /
* NAFTA MDI capacity to reach 740 kilotons per year
by end of 2024 /
* Extending Covestro´s regional and global MDI leadership position
Covestro accelerates its investment activities
to capitalize on the strong MDI market growth.
Today, the Supervisory Board of Covestro
has approved an investment of around EUR 1.5 billion
to build a new world-scale MDI plant in Baytown, USA.
This investment at the existing site in Baytown
is the largest single investment in the history of the company.
Total capacity of the new train
will be 500 kilotons MDI per year,
start of production is expected in 2024.
At the same time
an older, less efficient MDI unit of 90 kilotons production capacity
will be closed. Thus, total MDI capacities of Covestro
in the NAFTA region will reach around 740 kilotons per year
making Covestro the industry capacity leader in the region by 2024.
With that, Covestro will also strongly underline
its global industry capacity leadership position.
The decision to build the new world-scale plant in Baytown
was taken following a thorough analysis of different options.
Besides the attractiveness of the domestic market,
main advantages of Baytown are
* leading cash costs as well as
* significant benefits in terms of available infrastructure and logistics.
The superior cost position is mainly driven by
economies of scale and
a high degree of vertical integration.
Furthermore, low energy and shipping costs
due to high domestic demand in North America
add to the Baytown case.
With the new plant, Covestro’s future MDI capacities in
* North America of 740 kilotons per year by 2024
will also catch up to the company’s future capacities in
* EMEA (820 kilotons per year by 2022) and
* APAC (670 kilotons per year by 2021).
Dr. Markus Steilemann
CEO
“Demand for innovative MDI materials will continue to grow
for the foreseeable future and likewise
promises attractive capacity utilization rates.
We have already announced a significant increase
in capital expenditures, now it’s time to put it into action”
“With the new MDI train in Baytown, we will further
strengthen our global leading position in Polyurethanes,
even better serve our customers
and create long-term shareholder value.”
Covestro AG Communications
51365 Leverkusen
Germany
Contact
Lars Boelke
Telephone +49 214 6009 4206
Email Lars.Boelke @covestro.com
Contact
Benjamin Schütz
Telephone +49 214 6009 2814
Email Benjamin.Schuetz @covestro.com
WWW.CHEMWINFO.COM BY KHUN PHICHAI
