Covestro suspends investment in a world-class MDI plant

Due to the energy crisis in Europe and the continued weakness of the global economy, Covestro decided to suspend investment projects
for its new world-class MDI plant.
This also means that no final decision
has been made on the location of the MDI facility.

Dr.
Markus Steilemann, CEO of Covestro, said: "The war in Ukraine, the European energy crisis and growing inflation have severely disrupted the global economy
.
In the face of an increasingly volatile economic environment, we must ensure that the best decisions
are made for our company, both economically and strategically.
Therefore, we are temporarily suspending the project and re-evaluating
it later.
In addition, in the long term, we are seeing a significant increase in global demand for MDI, driven by the trend towards energy-efficient buildings, and we, as a global market leader, hope to benefit from this demand, while continuing to invest in areas where there are growth opportunities in
all regions of the world.
" ”

In September 2021, Covestro announced that it would resume its previously suspended investment projects
at a world-class MDI plant.
On the site selection, Covestro reported that it is considering the United States or China as the location of the
new plant.

Dr.
Thomas Toepfer, Chief Financial Officer of Covestro, said: "We are facing unprecedented challenges that are fundamentally changing the global economic landscape
.
That's why we carefully studied this world-class project in light of our overall investment process and decided to suspend it
in light of the economic situation.
At the same time, we will continue to invest in our transition to a circular economy and in expanding Covestro's production capacity
.
”

The suspension of investments on a global scale does not mean a change
in Covestro's strategy for long-term growth.
In the long term, China and Asia Pacific in particular remain Covestro's top growth markets
.
As part of its corporate strategy "Sustainable Future", Covestro will continue to invest in areas with sustainable growth opportunities and continue to move
towards a fully circular direction.