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Covestro will spend about $235 million to increase its production capacity for methylene diphenyl diisocyanate (MDI) in Tarragona, Spain, by about 30% to 220,000 metric tons per year. Covestro also plans to establish its own facilities for making chlorine, a raw material for the polyurethane intermediate, in Tarragona. The new MDI capacity is due online in 2022 and the chlorine by the end of 2020. Covestro had considered closing the Tarragona plant in 2015 when chlorine supply became uncertain.
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