 A Leading Supplier to the Specialty Chemical Industry Covestro expands TDI production capacity in Shanghai to 370,000 tons, strengthening competitiveness amid global supply tightening.
2026-02-02 14:03:09Source:ChemNet中文
On January 30, Covestro announced the completion of a major capacity expansion and upgrade of the toluene diisocyanate (TDI) production facility at its Shanghai integrated site. The annual TDI production capacity increased from 310,000 tons to 370,000 tons, a nearly 20% increase, further strengthening its supply capabilities in the Asia-Pacific region.
Covestro’s Shanghai integrated site is located in the Shanghai Chemical Industry Park and is the company’s largest production base globally. This expansion did not involve building new production lines but was achieved by optimizing existing production processes and infrastructure, resulting in significant output growth without additional land or major equipment investments.
Covestro Continues to Enhance Competitiveness in the TDI Sector
In March 2025, its largest TDI plant in Europe, located in Dormagen, Germany, completed a modernization upgrade. With an annual capacity of 300,000 tons, the core of the upgrade focused on energy recycling, reducing energy consumption by 80% compared to traditional processes and cutting annual CO2 emissions by 22,000 tons. This not only strengthened its competitiveness in high-energy-cost markets but also provided customers with TDI products with a lower carbon footprint.
In early 2026, the global TDI market experienced a concentrated contraction in supply. In January, global TDI plant shutdowns for maintenance totaled 860,000 tons, accounting for 24% of global production capacity. This included temporary shutdowns at Hanwha in South Korea and Wanhua’s Xinjiang facility, compounded by previous maintenance and abnormal fluctuations at major plants such as Covestro Shanghai and Wanhua Fujian, leading to a widening global supply gap.
Tight Supply in the TDI Market
From January 12 to 22, Wanhua Chemical’s TDI distributor price was set at 15,200 RMB/ton. Due to the ongoing shutdown of the Northwest plant, there was no supply from Northwest sources during this period. A major Shanghai manufacturer adjusted its TDI price to 14,400 RMB/ton, with tight supply and limited quantities available.
China’s TDI Exports Hit a Record High in 2025
Import and export data show that China’s TDI exports reached a historic high in 2025, with total annual exports reaching 556,500 tons and cumulative imports of only 3,400 tons. In December, exports were 50,200 tons, with imports of 140 tons; in November, exports reached 56,500 tons, setting a record for monthly exports, while imports were 460 tons. China’s TDI supply is highly self-sufficient, with exports playing a dominant role.
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