# Covestro re-examines location for world-scale MDI plant

Covestro announced it intends to proceed with a world-scale MDI plant, re-examining the location between the US and China due to increased US construction costs. The company had suspended plans for a 500,000 tonne/year plant in Baytown, Texas in early 2020.

- Type: Investment
- Announced: 2021-09-28
- Value: $1.50B
- Starts operating: 2026
- Status: announced
- Capacity: 500,000 tonnes/year
- Products: methylene diphenyl diisocyanate (MDI)
- Sectors: [Specialty Chemicals](https://endata.com/sectors/specialty-chemicals.md)

## Companies

- [Covestro](https://endata.com/companies/1705.md)

## Sources

- [everchem.com](https://everchem.com/covestro-mdi-expansion-plans/), 2021-09-28: "Construction costs in the US have significantly increased, leading to a lower return on capital employed versus our original plan."
- [covestro.com](https://www.covestro.com/investors/news/covestro-raises-investment-in-sustainable-growth/), 2021-09-28: "There is growing demand for sustainable solutions worldwide and that offers us significant additional market potential."
- [icis.com](https://www.icis.com/explore/resources/news/2021/09/28/10689596/higher-costs-drive-re-examination-of-covestro-mdi-plant-location-plans-ceo/), 2021-11-28: "A significant increase in construction costs in the US has become a factor in Covestro moving to re-examine the potential location of its planned flagship methylene diphenyl diisocyanate (MDI) plant, with China mooted as an alternative."

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Data from Endata (https://endata.com/). Announcements are summarized from public sources and may be incomplete; check the linked originals.