China to lead global methylene diphenyl diisocyanate capacity additions through 2030

China is poised to significantly expand its methylene diphenyl diisocyanate (MDI) production capacity by 2030, driven by heavy demand for MDI from various sectors such as construction, automotive and electronics industries. Accounting for 65% of the expected capacity additions worldwide by 2030, China is set to further strengthen its position as the leading player in the global MDI market, according to GlobalData, the data and analytics company.

GlobalData’s latest report, Methylene Diphenyl Diisocyanate (MDI) Industry Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants to 2030, reveals that China is likely to witness a total MDI capacity additions of 0.80 million tonnes per annum (mtpa) during 2025 to 2030.

Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “MDI is a key chemical intermediate used in the production of polyurethane,a polymer that finds wide applications across various industries for insulation, adhesives, and other industrial applications. The demand for MDI in these applications is a driving force in the market within the country.”

In China, the capacity addition is expected from two planned projects, each with a capacity of 0.40 mtpa. One of the projects is in Fujian province – the Wanhua Chemical Fujian Company Fuzhou Methylene Diphenyl Diisocyanate (MDI) Plant. Wanhua Chemical (Fujian) Co Ltd is the designated operator of this plant and holds 80% equity stake in the project. China Petrochemical Corp and Fujian Petrochemical Industrial Group Company Ltd are the remaining equity holders, each with a 10% stake. The plant is anticipated to commence production of MDI this year.

Xinjiang Heshan Juli Chemical Yantai Methylene Diphenyl Diisocyanate (MDI) Plant is the other project with 0.40 mtpa capacity addition in the country.The plant is presently under the approval stage and is expected to begin operations in 2027. Xinjiang Heshan Juli Chemical Co Ltd is the proposed operator of this plant to be located in Shandong province.