Expansions: Covestro ups TDI capacity by 20% in China, Toyo Engineering to undertake BPCL’s Kochi PP plant

Materials manufacturer Covestro says it has successfully completed a major debottlenecking project at its TDI (toluene diisocyanate) production facility in Shanghai, China. The company has increased the annual production capacity from 310,000 to 370,000 tonnes, representing a 20% expansion that strengthens Covestro's position as a leading supplier of TDI in the Asia Pacific region.

The capacity expansion at Covestro Integrated Site Shanghai (CISS) comes in response to growing customer demand for TDI, a key component used primarily in flexible foams for furniture, mattresses and automotive applications. The debottlenecking project was completed on schedule and will enable Covestro to provide more reliable supply to customers throughout the region.

"This investment demonstrates our commitment to supporting our customers' growth in Asia Pacific, particularly in China and the broader region," said Xiaobin Zhong, Covestro's Head of Performance Materials Sales in the Asia Pacific region. "By expanding our TDI capacity in Shanghai, we ensure reliable supply to meet increasing market demand while reinforcing our position as a preferred partner for the furniture and automotive industries."

The site, located in the Shanghai Chemical Industry Park, is one of Covestro's largest production facilities worldwide. The successful debottlenecking project involved optimising existing production processes and infrastructure rather than building new production lines, resulting in a more resource-efficient approach to capacity expansion.

"This achievement reflects our strategy of growing through smart, efficient investments that deliver maximum value to our customers," said Hermann-Josef Doerholt, Head of Performance Materials at Covestro. “It also further strengthens Covestro's global TDI production network, which includes world-scale plants in Dormagen, Germany and Baytown, Texas, ensuring that we can reliably serve customers across all major regions.”

TDI is an essential component for producing flexible polyurethane foams, which provide comfort in furniture, mattresses, and car seats.

In other news, Toyo Engineering India Pvt. Ltd, a wholly owned subsidiary of Toyo Engineering Corporation, Japan, has been awarded a contract for Engineering, Procurement, Construction, and Commissioning (EPCC) by Bharat Petroleum Corporation Limited (BPCL) for 400 kilotonnes/year PP unit at its Kochi Refinery. The awarded contract is scheduled for completion by Q3 FY 2027-28.

BPCL, India’s second-largest public sector oil marketing company has established a robust presence across the entire energy value chain. This project is a key part of BPCL’s petrochemical expansion strategy and marks a major milestone for Toyo-India.

Toyo-India has been associated with BPCL since 2003, successfully executing multiple projects in petrochemicals and refinery segments.

However, this new contract, stands out as the largest ever awarded by BPCL to Toyo-India, marking a significant milestone for Toyo-India, it adds.

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