On October 13, Covestro issued an announcement stating that due to a sudden failure of the central pump of the 300,000-ton/year TDI device in Germany, the device had been shut down for maintenance on the 12th and officially declared force majeure on TDI related products.
Aerial view of Covestro's production site in Dormagen, Germany
It is understood that the 300,000 tons/year TDI plant of Covestro in Germany mainly supplies Europe, the Middle East and Africa. It is expected that the Shanghai plant of Covestro may transfer goods to the above regions, which can further support the Chinese domestic market and provide foreign TDI markets. In other words, the impact of the force majeure event at Covestro in Germany may only begin, and the market shortage will continue.
It is currently difficult for Covestro to estimate how long this failure will last, but it can be expected that this will have a great impact on the supply of its TDI-related products and cause significant delays in the shipment of related products.
In addition, since Covestro had just conducted an annual overhaul in early October (the central pump that had a problem this time was just out of the overhaul range.), the safety stock is low, and it may be difficult for the company to guarantee timely delivery during the period of force majeure. In extreme cases, it may be Not available. Covestro is studying related solutions and will notify relevant customers as early as possible
