Kumho Mitsui Chemicals to Expand MDI Production Again with Additional 100,000 Tons Capacity

Plan to Establish Annual Production Capacity of 710,000 Tons by End of 2026
Largest in Korea... Expansion of High-Performance Insulation Materials

Kumho Mitsui Chemicals, an affiliate of Kumho Petrochemical Group, is once again increasing its production capacity for methylene diphenyl diisocyanate (MDI), a key raw material for polyurethane. Following a large-scale expansion in April, the company is continuing its phased expansion strategy by further boosting capacity through process optimization.

On December 15, Kumho Mitsui Chemicals announced that it had received final approval at a shareholders' meeting on December 2 for a debottlenecking investment plan worth 140 billion won to add 100,000 tons of MDI production capacity. Debottlenecking is a method of increasing output by resolving bottlenecks and improving existing processes, and is known for its higher investment efficiency compared to new plant construction.

Exterior view of Kumho Mitsui Chemicals Yeosu Plant. Photo by The Asia Business Daily

This decision comes just eight months after the company completed a large-scale expansion plant with a capacity of 200,000 tons in April, establishing an annual production system of 610,000 tons. At that time, Kumho Mitsui Chemicals invested approximately 570 billion won to increase its capacity from 410,000 tons to 610,000 tons, creating the largest MDI production base in Korea.

With this latest investment, Kumho Mitsui Chemicals will upgrade its facilities from 610,000 tons to 710,000 tons, expecting to generate approximately 250 billion won in additional annual sales and improve profitability by reducing manufacturing costs. In addition, the company plans to expand the production share of "high-viscosity polymeric MDI," which has excellent insulation performance, driven by this process optimization investment. Despite the global construction slowdown, the company believes that demand for high-performance insulation materials remains strong due to stricter energy efficiency regulations. Its strategy is to defend profitability by shifting its portfolio toward high value-added products in an increasingly competitive market for general-purpose products.

In April, Kumho Mitsui Chemicals became the first in Korea to introduce an eco-friendly recycling process at its newly completed 200,000-ton expansion plant, reusing by-products and wastewater generated during MDI production as raw materials. The company plans to select a construction contractor by January next year, begin main construction in February, and carry out the project over approximately 11 months. Commercial production of the expanded capacity is scheduled to begin at the end of December 2026, and related infrastructure such as wastewater treatment and logistics will be gradually established through the first half of 2027.

In 2021, Kumho Mitsui Chemicals confirmed an investment to expand MDI capacity by 200,000 tons. Kumho Petrochemical

Oh Yonghyun, CEO of Kumho Mitsui Chemicals, stated, "This debottlenecking investment is a strategic project to maximize investment efficiency by fully utilizing existing facilities. We will solidify our foundation to compete with global MDI manufacturers by achieving the planned schedule and targeted profitability."

Since beginning MDI production with an annual capacity of 20,000 tons in 1989, Kumho Mitsui Chemicals has repeatedly expanded its capacity in line with market growth. The company increased capacity to 200,000 tons in 2012, 350,000 tons in 2018, 410,000 tons in 2019, and 610,000 tons in 2025, and is projected to reach 710,000 tons in 2026.