Covestro has decided to delay further work on its MDI plant expansion in Baytown, Texas due to challenging global market conditions. The investment project, known as MDI-500, will be paused for a period of 18 to 24 months. Covestro first announced its decision to invest in a world-scale MDI plant in Texas in late 2018. The new plant was expected to be fully operational by 2024.
Covestro to Resume the Project at Appropriate Time
The latest decision is fully in line with Covestro’s standard investment procedures, through which investment plans are regularly reviewed against the backdrop of changing economic and market conditions. While this project is temporarily on hold, the company remains firmly committed to the long-term growth potential of the MDI market and will continue to provide reliable MDI supply for its customers.
The pause neither means a cancellation of the project, nor a change in Covestro’s long-term growth strategy. The company remains committed to Baytown as the ideal location to further expand its MDI production capacities in North America. Covestro will continue to closely monitor the market development and will be prepared to resume the project at the appropriate time.
Source: Covestro