Material Insights · Understanding the Material World

Polyurethanes (MDI, TDI, polyols): Production

How Wanhua outran BASF and Covestro

What this tab covers Who makes it and how much: world capacity and output, utilisation, the top producing countries and companies globally and in India, concentration, new capacity coming, and each region's position.
MeasureFigureDetailSource
World capacityMDI about 11-12 Mt/yr and TDI about 4 Mt/yr (2025, indicative)indicative (basis: Wanhua 3.8 Mt MDI at about 30% of world capacity and 1.47 Mt TDI at over 35%, faxiangongchang 2026); the same report also cites 8.62 Mt as world MDI nominal capacity, which conflicts with its share figures
World outputMDI demand about 8.62 Mt (2025, up about 5%); TDI about 3.3 Mt (indicative); polyols about 11 Mt (indicative)faxiangongchang 2026; TDI and polyols indicative
Capacity utilisationMDI about 75-80% (2025), about 80% in Q1 2026MDI ran at about 85% in 2024. In 2025 Wanhua ran at about 90% while BASF and Covestro ran at about 70-75%.faxiangongchang 2026
ConcentrationTop five MDI producers over 90% of capacity; Wanhua about 30% (MDI) and over 35% (TDI)BASF holds about 17% of MDI and about 20% of TDI; Covestro about 17% of MDI. Huntsman and Dow form a third tier.faxiangongchang 2026
New capacityabout 1.2-1.9 Mt/yr of MDI to 2027-2030Wanhua Fujian 700 kt/yr MDI from Q2 2026 (faxiangongchang); Xinjiang Heshan Juli Yantai 0.4 Mt/yr (2027), BASF Geismar 0.3 Mt/yr (2026) and Tosoh Vietnam 0.13 Mt/yr (2026) (GlobalData). BorsodChem MDI-2 upgraded from 150 to 240 kt and TDI-2 at 160 kt (2025). No Indian MDI project was confirmed.faxiangongchang 2026; GlobalData via Offshore Technology, 2025

Top producing countries

China 50% · about half of MDI capacity and about 45% of TDI capacity United States 15% · BASF, Covestro, Dow and Huntsman MDI on the Gulf Coast; BASF adds 0.3 Mt in 2026 Germany and rest of EU 18% · BASF, Covestro, Dow and BorsodChem (Hungary, about 400 kt MDI and 250 kt TDI) Japan and South Korea 7% · Tosoh, Mitsui Chemicals (new 100 kt MDI in 2025), Kumho Mitsui Saudi Arabia 4% · Sadara (Dow-Aramco) MDI and TDI faxiangongchang 2026 (TDI); MDI share indicative (basis: Wanhua, BASF, Covestro, Huntsman and Juli plants); GlobalData via Offshore Technology; share indicative; faxiangongchang 2026; share indicative; Alchempro Nov 2025 (Sadara as exporter); share indicative

Largest producers: global

CompanyCountryVolumeYearSource
Wanhua Chemical rising to 4.5 Mt/yr MDI after Fujian expansion in 2026; owns BorsodChem in Hungary China3.8 Mt/yr MDI (plus 1.47 Mt/yr TDI) end-2025faxiangongchang 2026
BASF Geismar MDI 2 (0.3 Mt/yr) due 2026 (GlobalData) Germanynot published 2025faxiangongchang 2026
Covestro takeover by ADNOC agreed in 2024 (indicative) Germanynot published 2025faxiangongchang 2026
Huntsman not published in sources reached USnot published 2025faxiangongchang 2026
Dow (incl. Sadara JV with Aramco) not published in sources reached USnot published 2025faxiangongchang 2026; Alchempro Nov 2025
Tosoh Japanese plants reduced (faxiangongchang) Japan0.13 Mt/yr MDI (proposed Vietnam plant) 2026GlobalData via Offshore Technology

Largest producers: India

CompanyCountryVolumeYearSource
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) India's only TDI producer (indicative); protected by anti-dumping duty on TDI from the EU and Saudi Arabia Indianot published 2025indicative
Manali Petrochemicals also India's only PO maker (PO tile) Indianot published 2025PU Daily, 2025
Expanded Polyols SystemsIndianot published 2025PU Daily, 2025
Sheela Foam (Sleepwell) largest mattress foam maker (indicative); a TDI importer Indianot published 2025Alchempro Nov 2025 (named in TDI review)
Covestro India and Wanhua International (India) no isocyanate production in India Indianot published 2025Alchempro Nov 2025

India has no MDI plant and one TDI producer (indicative). Polyether polyol capacity is about 77 kt/yr, while imports were about 500 kt in 2024 and were projected at 550-600 kt in 2025, about 40% from China (PU Daily, 2025).

Position by region

RegionPosition
USLarge integrated MDI base on the Gulf Coast; BASF expanding Geismar.
EUBASF and Covestro ran at about 70-75% in 2025 on high energy costs and Chinese competition (faxiangongchang).
IndiaImports all MDI and most polyols; TDI protected by anti-dumping duty; demand driven by mattresses, appliances, cars and cold chain.
ChinaWanhua sets the global cost floor and adds capacity; China's PO and polyol self-sufficiency is above 97% (faxiangongchang).
JapanTosoh and Mitsui cutting or shifting capacity offshore.
Middle EastSadara exports MDI, TDI and polyols, much of it to India; Gulf shipping disruption in 2026 raised costs (MEG tile).