Project to pause for 18-24 months, company remains committed to MDI market
Baytown, TX, January 21, 2020 — Due to challenging global market conditions, Covestro has decided to delay further work on its MDI plant expansion in Baytown, Texas. 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.
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.
About Covestro LLC:
Covestro LLC is one of the leading producers of high-performance polymers in North America and is part of the global Covestro business, which is among the world’s largest polymer companies with 2018 sales of EUR 14.6 billion. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, electrical and electronics, and healthcare industries. Other sectors include sports and leisure, cosmetics and the chemical industry itself. Covestro has 30 production sites worldwide and employed approximately 16,800 people at the end of 2018
Find more information at www.covestro.us.
Bob Walker, Phone: 412 413 2369
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This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.
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