Coxtron suspended the world - class MDI factory investment project

The project needs to be reevaluated based on the current economic situation

MDI remains a market with long-term growth prospects

Cosco will continue to invest in areas with sustainable growth opportunities

Due to the energy crisis in Europe and continued weakness in the global economy, Cosco has decided to suspend its investment project for a new world-class MDI plant. This also means that no final decision has been made regarding the location of the MDI plant.

"The war in Ukraine, the energy crisis in Europe and rising inflation have severely disrupted the global economy," said Dr. Markus Steilemann, CEO of Coxtron. In the face of an increasingly volatile economic environment, we must ensure that we make the best decisions economically and strategically for our company. Therefore, we have temporarily suspended the project and will re-evaluate it later. In addition, over the long term, we are looking to capitalize on the significant growth in global demand for MDI driven by the energy efficient building trend, as a leading player in the global market, while continuing to invest in growth opportunities in all regions of the world."

In September 2021, Coxtron announced that it would resume the previously suspended investment project of the world-class MDI plant. In the case of location, Cosco reports that it is considering either the U.S. or China for the new plant.

"We are facing unprecedented challenges that are fundamentally changing the global economic landscape," said Dr. Thomas Toepfer, Cosco's Chief Financial Officer. That is why we have carefully studied this world-class project in light of our overall investment process and have decided to suspend it in light of the economic situation. At the same time, we will continue to invest in our transition to a circular economy and expanding Coxtron's capacity."

The suspension of global scale investment projects does not represent a change in Coxtron's long-term growth strategy. In the long run, China and the Asia-Pacific region in particular remain Cosco's major growth markets. As part of its "Sustainable Future" corporate strategy, Coxtron will continue to invest in areas where there are opportunities for sustainable growth and continue to move towards a full cycle.