Core Viewpoint - Covestro has signed an agreement to acquire Vencorex, a subsidiary of PTTGC, which includes production bases in Thailand and the USA, expected to be completed by the end of 2025, indicating confidence in the coatings and adhesives business despite recent performance pressures [2][5] Group 1: Acquisition Details - The acquisition involves Vencorex's production capacities of 79,000 tons/year of HDI monomer and 24,000 tons/year of HDI derivatives in France, along with 12,000 tons/year in both the USA and Thailand [2] - Vencorex is undergoing judicial reorganization due to challenges from the European energy crisis following the Russia-Ukraine conflict [2] Group 2: Competitive Landscape - Wanhua Chemical has also proposed to acquire Vencorex's specialty isocyanate business in France, with a transaction value of approximately €1.2 million and a commitment to invest €19 million by 2027 [4] - The acquisition of Vencorex by both Covestro and Wanhua indicates a strategic division of the company between the two chemical giants, with Wanhua focusing on Europe and Covestro on Asia [5] Group 3: Market Capacity and Trends - Wanhua Chemical's total HDI capacity is projected to reach 200,000 tons/year, while Covestro's capacity stands at 190,000 tons/year [6] - Emerging players like Meirui New Materials have rapidly ascended to become the third-largest in the HDI sector, with a capacity of 100,000 tons/year and plans for an additional 200,000 tons [6] - HDI is a critical component in polyurethane coatings, adhesives, and sealants, with significant applications in the automotive sector, which is the largest market [6]