Covestro intends to close its MDI production facility (annual capacity max. 170,000 metric tons) in Tarragona, Spain, by the end of 2017. The Covestro Supervisory Board approved this plan at its meeting on December 4, as per SpecialChem. This decision is in line with Covestro's objective to operate the most efficient facilities in its competitive environment through continuous optimization of its production operations.
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.
11-Dec-15 
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