Covestro expands Shanghai TDI capacity by 20%, boosting Asia-Pacific supply reliability and reinforcing leadership in flexible foam materials.
Covestro, a global leader in high-performance polymer materials, has successfully completed a significant debottlenecking initiative at its toluene diisocyanate (TDI) manufacturing facility in Shanghai, China. This strategic project has increased the plant’s annual production capacity from 310,000 metric tons to 370,000 metric tons, marking an expansion of approximately 20 percent. With this enhancement, Covestro further consolidates its position as one of the leading suppliers of TDI across the Asia Pacific region.
The expansion was carried out at the Covestro Integrated Site Shanghai (CISS), a key production hub located within the Shanghai Chemical Industry Park. The decision to enhance capacity reflects steadily rising demand for TDI from regional customers, particularly in sectors such as furniture, bedding, and automotive manufacturing. TDI is a critical raw material used in the production of flexible polyurethane foams, which are widely applied in mattresses, upholstered furniture, and vehicle seating systems due to their comfort, durability, and performance characteristics.
Rather than constructing new production lines, Covestro adopted a resource-efficient approach by optimizing existing assets, infrastructure, and operational processes. Through targeted technical upgrades and process improvements, the company was able to unlock additional capacity while minimizing environmental impact and capital intensity. Importantly, the project was completed on schedule, underscoring Covestro’s operational discipline and engineering expertise.
The successful debottlenecking effort enables Covestro to deliver a more stable and reliable supply of TDI to customers throughout China and the broader Asia Pacific market. As demand for flexible foams continues to grow—driven by urbanization, rising living standards, and expanding automotive production—the enhanced capacity ensures Covestro can respond quickly and consistently to customer requirements.
Commenting on the development, Xiaobin Zhong, Head of Performance Materials Sales for Asia Pacific at Covestro, emphasized the customer-centric nature of the investment. He noted that expanding TDI capacity in Shanghai demonstrates Covestro’s long-term commitment to supporting customer growth in the region. By strengthening local production capabilities, the company aims to meet rising demand while reinforcing its role as a trusted and preferred partner for industries such as furniture manufacturing and automotive interiors.
The Shanghai site is among Covestro’s largest and most strategically important production locations worldwide. Its integration within a well-developed chemical industry park allows for efficient logistics, streamlined supply chains, and close proximity to key downstream customers. The latest capacity increase further enhances the site’s importance within Covestro’s global manufacturing network.
Hermann-Josef Doerholt, Head of Performance Materials at Covestro, highlighted that the project aligns with the company’s broader growth strategy. He explained that Covestro is focused on disciplined, intelligent investments that maximize customer value while ensuring operational efficiency. The Shanghai expansion also strengthens the company’s global TDI production network, which includes large-scale plants in Dormagen, Germany, and Baytown, Texas. Together, these facilities allow Covestro to reliably serve customers across all major regions worldwide.
Overall, the expanded TDI capacity in Shanghai positions Covestro to better support long-term market growth, improve supply security, and maintain its leadership in the global polyurethane value chain.
