Issue 24/2017 - Covestro increases MDI production capacity at its Spanish plant

Covestro boosts MDI capacity
at its Spanish plant Covestro said today that it plans to invest about 200 million euros to increase its diphenylmethane diisocyanate (MDI) production capacity at its Tarragona plant in Spain and continue production
beyond 2020.
The investment includes removing bottlenecks at the plant, increasing production capacity from 50,000 to 220,000 tons, and other measures
to enhance cost competitiveness.
First, the company will build its own chlorine production facilities to ensure an efficient, sustainable and autonomous supply
of this important raw material.

The company said the ramp-up process to remove bottlenecks will take place in 2022, while chlorine production is scheduled to begin in
late 2020.
Previously, the chlorine gas needed for production at the
base was supplied externally.
The new chlorine production facility will feature state-of-the-art energy-saving technologies, making the production of critical raw materials, as well as overall production, more efficient
.

Markus Steilemann, chief commercial officer and incoming CEO of Covestro
, said the company expects MDI to continue to be in short supply.
The investment will further leverage the company's existing global production network and reinforce the company's existing commitment
to the MDI market.
At the same time, the company is expanding its production facility in Brunsbüttel, Germany, and plans to double its MDI production to about 400,000 tons
by the end of 2018.