Covestro acquires two Vencorex HDI derivative sites in USA and Thailand, strengthening global coatings and adhesives strategy with expanded production capacity.
German materials manufacturer Covestro has taken a significant step to strengthen its global presence in the specialty isocyanates sector by acquiring two major production sites. The company has signed an agreement with Vencorex Holding SAS, a subsidiary of Thai chemical giant PTT Global Chemical Public Company Limited, to acquire two independent legal entities with production facilities dedicated to Hexamethylene Diisocyanate (HDI) derivatives. These facilities are located in Rayong, Thailand, and Freeport, USA, and were previously part of the French aliphatic specialist Vencorex.
This move aligns with Covestro’s long-term vision of expanding its aliphatics production portfolio, particularly in the Asia-Pacific region and the United States. By doing so, the company not only strengthens its regional supply capabilities but also furthers the goals of its “Sustainable Future” corporate strategy, which emphasizes growth in profitable, innovative, and sustainable business areas such as coatings and adhesives.
Christian Baier, Chief Financial Officer of Covestro, emphasized the strategic importance of the acquisition. He stated that while Covestro continues to maintain cost discipline to safeguard short-term financial performance, it is simultaneously making targeted investments to secure long-term competitiveness. According to Baier, integrating these new sites into Covestro’s network fits seamlessly with the company’s portfolio and strategic ambitions.
HDI derivatives play a vital role in a wide range of industries. They are key raw materials for polyurethane coatings, adhesives, and sealants, making them indispensable in applications across various sectors. Products using these derivatives can be found in automobiles, trucks, ships, bridges, wood furniture, and electronic devices, among others. Covestro is already recognized as a leading supplier of HDI derivatives, and this acquisition will further reinforce its global market position.
Thomas Roemer, Head of Covestro’s Business Entity Coatings and Adhesives, highlighted that the added capacities in Thailand and the USA will significantly enhance production and delivery capabilities across all major markets. This will allow the company to respond more effectively to evolving customer demands, particularly in times of supply chain challenges and volatile market conditions. Roemer also pointed out that the deal builds on Covestro’s earlier acquisition of the Resins & Functional Materials (RFM) business from DSM, as well as its consistent investments in organic growth. He welcomed the new employees who will join the Covestro team following the acquisition.
Although the financial details of the deal remain confidential, both companies have confirmed that the transaction is expected to be completed by the end of 2025. Once finalized, this acquisition will mark another milestone in Covestro’s journey toward strengthening its leadership in the coatings and adhesives segment while ensuring global coverage and customer proximity.
