The board of management of Covestro has approved an expansion of production capacity for the foam component MDI (diphenylmethane diisocyanate) at the Brunsbuttel site in Germany. An existing, idled plant for the precursor TDI (toluene diisocyanate) will be converted for production of MDI.
As per the plan, the production capacity at the site will be roughly doubled to a total of approximately 400,000 metric tonnes of MDI per year. Commissioning of the new plant complex is scheduled for late 2018. Preliminary plans call for a total investment volume (in Euros) in the low hundreds of millions, which is already included in Covestro’s medium-term capital expenditure budget.
MDI is the basis to produce rigid polyurethane foam, which is used primarily for the efficient insulation of buildings and throughout the cool chain. The resultant energy savings help to substantially reduce CO2 emissions. TDI, on the other hand, is a key component of flexible polyurethane foam, which is found in products including mattresses, upholstered furniture and automobile seats. The Dormagen site is Covestro’s European center for production of this precursor.
“The planned MDI plant complex is a milestone in terms of energy efficiency, environmental compatibility and productivity, in addition to meeting the highest safety standards,” said Dr Steffen Kuhling, site and production manager in Brunsbuttel.
The Covestro Brunsbuttel Industrial Park is particularly well-suited for the MDI expansion because raw materials and other precursors are available there, and the site also offers the infrastructure required.
As per the plan, the production capacity at the site will be roughly doubled to a total of approximately 400,000 metric tonnes of MDI per year. Commissioning of the new plant complex is scheduled for late 2018. Preliminary plans call for a total investment volume (in Euros) in the low hundreds of millions, which is already included in Covestro’s medium-term capital expenditure budget.
MDI is the basis to produce rigid polyurethane foam, which is used primarily for the efficient insulation of buildings and throughout the cool chain. The resultant energy savings help to substantially reduce CO2 emissions. TDI, on the other hand, is a key component of flexible polyurethane foam, which is found in products including mattresses, upholstered furniture and automobile seats. The Dormagen site is Covestro’s European center for production of this precursor.
“The planned MDI plant complex is a milestone in terms of energy efficiency, environmental compatibility and productivity, in addition to meeting the highest safety standards,” said Dr Steffen Kuhling, site and production manager in Brunsbuttel.
The Covestro Brunsbuttel Industrial Park is particularly well-suited for the MDI expansion because raw materials and other precursors are available there, and the site also offers the infrastructure required.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%