International. Covestro confirmed its intentions to close its MDI production plant – Diiselmethane Diisocyanate – (maximum annual capacity of 170,000 metric tons) in Tarragona, Spain, by the end of 2017. Covestro's Supervisory Board approved this plan at its meeting on December 4.
The reason for the planned closure, which could affect about 120 jobs, is the uncompetitive cost of production. Other activities at headquarters, including a local polyurethane systems house, hydrochloric acid logistics and infrastructure facilities should be retained. The current infrastructure facilities will continue to be available to other companies in the chemical park.
The supervisory Board's resolution followed a detailed analysis of the headquarters which concluded that in the long term, the facilities in Tarragona can no longer remain competitive as an MDI production centre in Europe. A competitive site offering with chlorine, which is an essential element of the future MDI production process, played an important role in the context of these considerations.
To ensure the long-term competitiveness of MDI production in Europe, the company considers different options before deciding to invest directly in its strategic commodities, in isocyanates, and most likely expand production at another existing European site where there is already a modern and reliable supply of chlorine.
Leave your comment