In Shanghai, which foreign-invested enterprises are worth joining?

Supplemental list of foreign-invested enterprises in the chemical industry: BASF, Dow, Honeywell, Linde, Henkel, Covestro, Evonik, Solvay, DuPont, Eastman, Wacker, Huntsman, LG, Shell, ExxonMobil, Chevron, TotalEnergies, BP, PPG, Celanese, etc.

Europe shuts down 1.1 million tons! Covestro to build a world-class MDI plant in China—whose cake is whom grabbing?

On June 30, Covestro announced a major initiative: it will invest in constructing a new world-class MDI production facility at its integrated site in Shanghai, China, with operations expected to commence around 2030. Almost simultaneously, the company is evaluating the feasibility of building a second MDI plant of equivalent scale in the United Arab Emirates (UAE), leveraging its existing ammonia supply collaboration framework with TA'ZIZ and Fertiglobe. Covestro’s current global MDI capacity stands at approximately 1.8 million tons, with production facilities located in Germany, Spain, the United States, China, and Japan. Its Shanghai site alone accounts for 600,000 tons—serving as the core production hub for Covestro’s Asia-Pacific operations. The announcement of a new world-class MDI facility in Shanghai, coupled with the concurrent feasibility study for an UAE-based plant, signals an accelerated eastward shift in Covestro’s global capacity strategy. The first major move following acquisition This dual-track expansion marks Covestro’s first major capacity deployment since its acquisition by XRG—a subsidiary of Abu Dhabi National Oil Company (ADNOC). In October 2024, ADNOC and Covestro signed an investment agreement; by December 2025, XRG had completed its tender offer for Covestro, acquiring over 95% of its shares and advancing mandatory squeeze-out procedures and delisting. Covestro’s German headquarters, brand, and management remain operationally independent, now serving as XRG’s core platform for high-performance materials and specialty chemicals. This ‘dual-track layout’ thus represents the first strategic step under ADNOC’s leadership toward transforming Covestro’s global footprint. The UAE project did not emerge from thin air. In May 2026, TA'ZIZ—jointly with Alpha Dhabi—announced plans to construct a new chemical complex in Ruwais Industrial City, Abu Dhabi, with a total investment of approximately RMB 68 billion, currently entering joint feasibility studies and market research phases. Concurrently, Covestro, Fertiglobe, and TA'ZIZ signed a tripartite memorandum of understanding to jointly explore cooperation across the ammonia and nitric acid value chain. In the short term, Fertiglobe will supply ammonia to Covestro’s plants in China and the U.S.; long-term plans include evaluating low-carbon ammonia produced via carbon capture technologies and green ammonia derived from renewable energy. This means the UAE MDI project already has a fully integrated industrial ecosystem—from raw material supply to production infrastructure. Turning to China: Covestro’s Caojing site in Shanghai completed a technical upgrade in 2025, raising its MDI capacity from 500,000 to 650,000 tons per year, and incorporating carbon capture and storage (CCS) facilities that reduce CO₂ emissions by 300,000 tons annually. The newly announced facility represents further capacity expansion atop this 650,000-ton base—and remains located within Covestro’s Shanghai integrated site. This reaffirms Covestro’s commitment to deepening its investment in China, the world’s largest MDI consumption market. Global MDI capacity is being restructured Only against the backdrop of this global restructuring of MDI capacity can Covestro’s dual-track strategy be fully understood. The global MDI industry is undergoing a historic capacity realignment: Europe is systematically withdrawing, China continues expanding, and the Middle East is making a strong entry. Europe’s capacity withdrawal is now inevitable. Between 2026 and 2027, the three major MDI producers—BASF, Covestro, and Huntsman—plan to shut down 700,000–1.1 million tons of MDI capacity in Europe, representing 38%–49% of the continent’s total MDI output. Germany’s Ludwigshafen plant is among the first affected: soaring energy costs and stringent carbon-reduction regulations have steadily eroded the competitiveness of European MDI facilities.

Covestro Signs Hamburg Port Ammonia Supply Memorandum

Sep 16, 2026

Covestro, Fertiglobe, and MB Energy signed an MoU to explore ammonia import and logistics via Hamburg Port. Covestro seeks reliable, low-carbon ammonia supplies for production and hydrogen needs amid CBAM compliance pressures.

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2026-09-14

Covestro Links with Fertiglobe, MB Energy for Potential Ammonia Imports as Feedstock, Hydrogen Carrier

2026-09-16

Covestro Signs Hamburg Port Ammonia Supply Memorandum

Covestro Signs Hamburg Port Ammonia Supply Memorandum

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