Leading German chemical producer Covestro (part of the Adnoc Group of Abu Dhabi), which already has a production facility in Shanghai, will expand its facilities, to produce 660 kilotons of MDI annually.
MDI (methylene diphenyl diisocyanate), a crucial raw material for polyurethanes and the foams made from them, is listed as a dangerous substance production of which is permitted only under strict restrictions in Europe under the REACH Regulation (EC) No. 1907/2006. Covestro, which has a corporate “climate neutrality” footprint, does not believe that the substance can be profitably produced in Europe under the existing regulations, as well as the high gas prices, and has therefore decided to build up production in Shanghai, and is considering another one in the United Arab Emirates. Production in Shanghai will start in 2030.
