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12-09-2015

Covestro to Close MDI Plant in Spain

After a thorough site analysis Covestro AG, formerly known as Bayer MaterialScience, has decided to close its MDI production facility (annual capacity max. 170,000 metric tons) in Tarragona, Spain, by the end of 2017.

The reason for the planned closure, which could affect about 120 jobs, is the non-competitive production cost. Other activities at the site, which comprise a local polyurethane systems house, hydrochloric acid logistics and infrastructure facilities are to be retained. The current infrastructure facilities will continue to be available to other companies at the chemical park.

The Supervisory Board resolution follows a detailed site analysis which concluded that in the long term, the facility in Tarragona can no longer remain competitive as an MDI production facility in Europe. A competitive future supply of the site with chlorine, which is an essential element of the MDI production process, played a role in the context of these considerations.

To ensure the long-term competitiveness of MDI production in Europe, the company intensively considered different options before deciding to invest directly in its strategic core products, isocyanates, and to most likely expand production at another existing European site where there is already a modern and reliable supply of chlorine. “The planned closure of the MDI plant in Tarragona is a painful step that was not taken lightly. The chemical park will have new opportunities for development as a hydrochloric acid logistics center for Spain. And with our infrastructure, it remains attractive to new tenants”, said Dr. Joachim Wolff, Head of the Covestro Polyurethanes Business Unit.

Covestro believes that the planned establishment of an HCl hub – a hydrochloric acid logistics center – presents good opportunities to continue its business on the Spanish market for hydrochloric acid. Hydrochloric acid is used for various activities such as the treatment of ores, the processing of metals and water treatment.

Company profile

Covestro Deutschland AG

Kaiser-Wilhelm-Allee 60
DE 51373 Leverkusen
Tel.: 0214 60092000

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