Tarragona, Spain – Covestro will close 170 kT/year MDI production here in 2017 as the site is no longer competitive, the firm said in a release. The firm will retain the site as a business park for its systems business.
About 120 jobs could be affected, Covestro said in a press release this afternoon.
The decision was driven by the inability to secure a competitive supply of chlorine used in MDI production, the firm said. Covestro added it is “most likely [to] expand production at another existing European site where there is already a modern and reliable supply of chlorine.”
Joachim Wolff, head of the Covestro polyurethanes business unit said:“The planned closure of the MDI plant in Tarragona is a painful step that was not taken lightly. The chemical park will have new opportunities for development as a hydrochloric acid logistics centre for Spain. And with our infrastructure, it remains attractive to new tenants.”
The company plans to operate it as a hydrochloric acid hub Jesus Loma-Ossorio, head of Covestro in Iberia said: “The Tarragona site will be retained and is open to new external investments. With our two sites in Tarragona and Barcelona, Covestro will remain an important company in the Spanish chemical Industry.”