Asia to lead global methylene diphenyl diisocyanate capacity additions by 2027 

Asia is set to lead the global methylene diphenyl diisocyanate (MDI) industry capacity additions with a share of 74% by 2027, by gaining capacities from new-build and expansion projects between 2023 and 2027, according to GlobalData, the data and analytics company.

GlobalData’s latest report, Methylene Diphenyl Diisocyanate (MDI) Industry Capacity And Capital Expenditure With Details Of All Active And Planned Plants shows that the total MDI capacity of new-build and expansion projects in Asia is expected to be one million tonne per annum (mtpa) by 2027.

MDI is a chemical compound primarily used in the manufacturing of polyurethane (PU) products, such as adhesives, elastomers, sealants, foams etc. Rising urbanisation and an expanding automotive sector in Asia are expected to lead to increased consumption of PU products, which, in turn, will result in increased demand for MDI in the region.

Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “For the upcoming new build projects, Asia is expected to add a capacity of 0.40mtpa from a planned project, whereas for the expansion of the existing MDI projects, the region is expected to add a capacity of 0.60mtpa from one planned and one announced project.”

China and South Korea are the two major countries in Asia in terms of MDI capacity additions. The capacity addition in China will be from a planned project, Xinjiang Heshan Juli Chemical Yantai Methylene Diphenyl Diisocyanate (MDI) Plant, and an announced project Wanhua Chemical Fujian Company Fuzhou Methylene Diphenyl Diisocyanate (MDI) Plant, with a capacity of 0.40 mtpa each. They are expected to commence production of MDI in 2026 and 2027, respectively.

Nivedita concludes: “In South Korea, the capacity contribution will be from a planned project, Kumho Mitsui Chemicals Yeosu Methylene Diphenyl Diisocyanate (MDI) Plant, with a capacity of 0.20 mtpa. It is expected to come online in 2024.”