South Korean chemical company OCI has announced that it will discontinue its TDI manufacturing and sales business, marking another change in the global polyurethane raw material market.
According to OCI's regulatory disclosure on September 29, 2026, the company's board decided to stop its TDI (Toluene Diisocyanate) manufacturing and sales business. The business is scheduled to officially cease operations on December 18, 2026. The stated reason is "restructuring non-core or marginal businesses" and improving profitability.
OCI currently operates a TDI production facility with an annual capacity of approximately 50,000 metric tons at its Gunsan plant in South Korea. OCI's own business materials list TDI as a basic polyurethane raw material with applications including furniture cushioning, automotive interiors, mattresses, coatings, adhesives, and other polyurethane products.
The financial contribution of the business is also significant. OCI reported that the TDI business generated approximately KRW 117.95 billion in sales in 2025, representing about 5.87% of the company's 2025 consolidated sales. The company expects the business restructuring to improve profitability through portfolio optimization.
Why has OCI decided to leave the TDI market?
Industry reports point to increasingly intense competition, particularly as Chinese producers have expanded TDI production capacity and increased exports. This has put pressure on producers in other regions. However, OCI's official reason for the business suspension is the restructuring of a marginal business rather than a specific announcement about Chinese competition. Therefore, the competitive pressure can be considered an important industry background, but should not be presented as OCI's sole officially stated reason.
The decision does not mean that TDI production is disappearing from the market. Instead, it removes approximately 50,000 tons per year of Korean production capacity from OCI's portfolio. The actual impact on regional supply will depend on how existing customers adjust their sourcing and how other producers respond.
For polyurethane manufacturers, the development is worth monitoring. TDI remains an important raw material for flexible polyurethane foam and is also used in coatings, adhesives, and other polyurethane applications. OCI has previously supplied TDI to customers in Korea, China, Turkey, and Southeast Asia.
The key question for the market is therefore not simply whether OCI is leaving TDI, but how customers previously supplied by OCI will adjust their sourcing after December 2026.
For buyers, this may lead to increased attention to alternative suppliers, qualification testing, supply stability, and long-term purchasing strategies. For TDI producers and polyurethane manufacturers, OCI's exit provides another signal that the global TDI market is undergoing structural changes driven by capacity, competition, production economics, and regional supply chains.
The full effect will become clearer after the December 18, 2026 shutdown and as customers and suppliers adjust their purchasing and production arrangements.