Covestro and Wanhua Reshape Global HDI Market with Strategic Asset Split 190 Million Euro Investment and Major Capacity Race

Covestro has signed a landmark deal with PTTGC’s subsidiary Vencorex to acquire HDI derivative plants in Rayong, Thailand and Freeport, USA, with the transaction expected to close by end of 2025. This move comes right after Covestro’s challenging half-year results but underscores the company’s confidence in its coatings and adhesives portfolio. The new assets will complement Covestro’s existing production bases in the US, Germany, China, and India.

Meanwhile, Wanhua Chemical, through its Hungarian unit Borsodchem, secured approval from Lyon’s commercial court to acquire Vencorex’s French specialty isocyanate business for approximately 1.2 million euros, with a commitment to invest 19 million euros by 2027. Vencorex’s French plant includes Europe’s only HDI monomer production base.

With these twin deals, the two chemical giants have effectively split Vencorex’s assets: Wanhua expands its European footprint, while Covestro solidifies its position in Asia. Wanhua’s total HDI capacity will reach 300,000 tons per year after upgrades, Covestro stands at 190,000 tons, and other global competitors like Tosoh and Asahi Kasei continue to expand.

HDI is a crucial component in polyurethane coatings and adhesives, widely used in automotive, bridges, wind power, electronics, and furniture. As demand for ultra-durable coatings and new applications grows, these deals set the stage for fierce competition and rapid innovation in the global HDI market.