Covestro takes over Vencorex sites and expands Coating & Adhesive production

Covestro has signed an agreement with Vencorex Holding SAS, a subsidiary of the Thai chemical company PTT Global Chemical Public Company Limited, to acquire two companies with independent production sites for HDI (hexamethylene diisocyanate) derivatives in Rayong, Thailand and Freeport, USA. The companies and production sites were previously part of the French aliphatic specialist Vencorex. With this acquisition, Covestro is strategically expanding and improving its production network for aliphatic isocyanates in the USA and the Asia-Pacific region. The company is thus continuing to focus on growth in profitable and innovative business areas such as Coatings & Adhesives and is thus pursuing its "Sustainable Future" corporate strategy. "The acquisition of these two former Vencorex sites fits perfectly with our portfolio and our strategic goals," says Christian Baier, CFO of Covestro. "Through targeted investments such as these, we are strengthening our long-term competitiveness while continuing to focus on cost discipline in the short term."

HDI derivatives as a component of coatings, adhesives and sealants

Covestro is a renowned supplier of HDI derivatives. The material is a key component in polyurethane coatings, adhesives and sealants, for example. It can therefore be found in a variety of applications, such as coatings and adhesives for cars, trucks, bridges, ships, wooden furniture and electronics, to name but a few. Covestro already has capacity for this material, including in the US, Germany, China and India, which will be supplemented by the acquisition. "These new capacities in Thailand and the USA complement our existing, extensive production capacities in all key regions. They will enable us to produce and deliver even better according to our customers' requirements, especially during the current market conditions," says Thomas Roemer, Head of the Coatings & Adhesives business unit at Covestro. "This acquisition is a further sign of confidence in our business unit, following the acquisition of DSM's Resins & Functional Materials (RFM) business in 2020 and investments in organic growth. I look forward to welcoming the new colleagues soon!" The transaction is expected to be completed by the end of 2025, a purchase price has not been disclosed.