Covestro Expands Global Production Capacity with Acquisition of Two HDI Derivative Plants in Thailand and USA

July 12, 2026

Plastics Today Germany

Overview

Covestro has completed the acquisition of two former Vencorex HDI derivative production plants located in Rayong, Thailand, and Freeport, Texas, USA. This strategic acquisition significantly expands Covestro’s global production footprint for hexamethylene diisocyanate (HDI) derivatives, substantially enhancing its supply capabilities to customers in the coatings and adhesives industries. The investment demonstrates Covestro’s commitment to meeting growing global demand and ensuring stable supply to key markets.

In Depth

Key Findings

Covestro has announced the successful completion of its acquisition of two former Vencorex HDI (hexamethylene diisocyanate) derivative production facilities. These strategically located plants are in Rayong, Thailand, and Freeport, Texas, USA. This acquisition marks a significant expansion of Covestro’s global production capacity for HDI derivatives, specifically enhancing its ability to supply the burgeoning coatings and adhesives industries with crucial raw materials.

Technical/Clinical Details

HDI derivatives are essential intermediates in the manufacturing of high-quality polyurethane coatings and adhesives. These materials are utilized in a wide array of products across automotive, construction, furniture, and electronics sectors, where superior durability, weather resistance, and aesthetic appeal are demanded. By acquiring these facilities, Covestro geographically diversifies and increases its production sites for these vital materials, thereby enhancing the resilience of its global supply chain. This move ensures a more stable supply of raw materials, enabling customers to proceed with their product development and production without interruptions.

Background & Context

The coatings and adhesives markets continue to experience robust growth, driven by demands for sustainability, lightweighting trends, and the increasing need for high-performance materials. Particularly, stricter environmental regulations are accelerating the shift towards low-VOC (Volatile Organic Compound) and waterborne systems, for which HDI derivatives are key components in high-performance, environmentally compliant products. Against the backdrop of these market dynamics, Covestro aims to enhance its ability to support customer innovation and achieve sustainability goals by strengthening its global production network.

Strategic Significance & Outlook

This acquisition represents a critical step for Covestro in further solidifying its position as a global leader in polyurethane materials. The expansion and geographical diversification of its production base will increase its resilience against market fluctuations and improve its responsiveness to regional customer needs. Through this, Covestro aims to accelerate its long-term growth strategy and maintain its competitive advantage as a key supplier in the high-performance coatings and adhesives market. Ultimately, this move is expected to contribute to the improved quality and sustainability of end products in sectors such as automotive, construction, and furniture.

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