Covestro announced it is evaluating new MDI plants in China and the Persian Gulf, with CEO Markus Steilemann explaining why the investments will not be made in Germany. The decision highlights shifting cost structures for Europe’s chemical sector and could redirect billions of euros of capital toward Asia‑Middle East, affecting regional supply chains and competitiveness. Covestro (CEO Markus Steilemann), its supervisory board, potential host governments in China and Gulf states, and German policymakers monitoring industrial location decisions. Covestro will conduct feasibility studies, seek local partnerships and incentives, and announce concrete investment timelines within the next 6‑12 months. Covestro’s plan to build new MDI facilities in China and the Persian Gulf reflects the company’s response to weaker domestic demand and higher energy costs in Germany, while tapping into growing Asian and Middle‑East markets for polyurethane raw materials. The move underscores the broader trend of German chemical firms relocating capacity to regions with lower operating costs and stronger end‑user demand. Markus Steilemann cited regulatory and cost disadvantages at home as key reasons for locating abroad.
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