On July 31, 2026, documents disclosed by the U.S. District Court for the Western District of Pennsylvania showed that Wanhua Chemical US Operations LLC had reached a settlement agreement with the plaintiffs in the MDI/TDI antitrust class action, with a settlement amount of $7.75 million (approximately RMB 52.3 million). The agreement is still subject to court approval before it can take effect.
This is the third company to choose a settlement in the antitrust case. BASF reached a $3 million settlement with the plaintiffs in May 2026. Subsequently, Covestro LLC, the U.S. subsidiary of Covestro, also settled for $7 million. To date, the total settlement amount from the three companies has reached $17.75 million (approximately RMB 120 million).
The Eight-Year MDI/TDI Antitrust Litigation
In June 2018, a number of downstream polyurethane purchasing companies filed a class action lawsuit in U.S. court, naming major global MDI and TDI producers including BASF, Dow Chemical, Huntsman, Covestro, and Wanhua Chemical as defendants.
The plaintiffs alleged that the companies had jointly pushed up MDI and TDI market prices through measures such as production shutdowns for maintenance and supply controls, in violation of U.S. antitrust laws.
All defendant companies denied the allegations and noted that although the U.S. Department of Justice had previously conducted investigations related to the industry, it ultimately did not file any antitrust charges.
In 2020, the U.S. court rejected the defendants’ motion to dismiss, holding that the plaintiffs’ evidence was sufficient to support continued proceedings, and the litigation moved into subsequent phases.
Parent Companies Dismissed, U.S. Subsidiaries Continue to Defend
In January 2026, the U.S. court ruled that China-based Wanhua Chemical Group Co., Ltd. and Germany-based Covestro’s parent company were outside the court’s personal jurisdiction and were dismissed from the case as defendants.
However, this ruling did not affect the litigation status of the two companies’ U.S. subsidiaries. Wanhua Chemical US Operations LLC and Covestro LLC continued to participate in the proceedings and subsequently reached settlements with the plaintiffs.
Dow, Huntsman, and Others Still Face Litigation
With the settlements, BASF, Covestro LLC, and Wanhua US Operations LLC have formally withdrawn from the case.
Nevertheless, the eight-year antitrust litigation has not yet concluded. The remaining defendants, including Dow Chemical and Huntsman, have not yet reached settlements with the plaintiffs, and the relevant proceedings continue.
Wanhua Yantai 110,000-ton MDI Unit to Undergo 45-Day Maintenance
Wanhua Chemical announced on August 4 that the 110,000-ton/year MDI unit and related supporting facilities at its Yantai industrial park will begin a scheduled production shutdown for maintenance on August 10, 2026, with an expected duration of about 45 days.
The maintenance is part of the annual planned turnaround, aimed at ensuring the safe and effective operation of the production facilities.
Wanhua Chemical stated in the announcement that the shutdown will not have a material impact on the company’s production and operations.
