Iran's only mdi/tdi manufacturer attacked!

On June 8, 2026 local time, Israeli missiles struck the Karoon petrochemical complex in the Mahshahr Petrochemical Economic Zone in southwestern Iran, causing partial damage to one of the country’s important industrial chemical facilities. The attack caused no casualties, but marked a further escalation in the already tense conflict between Israel and Iran, with the target directly aimed at infrastructure closely tied to Iran’s overall economic system. Reports said that chlorine-related units and storage facilities within the Karoon petrochemical complex were damaged.

At around 7:30 a.m. local time on June 8, 2026, two missiles struck parts of the plant. After the attack, all personnel in the Mahshahr Petrochemical Special Economic Zone were evacuated.

The Karoon Petrochemical Complex is operated by Karoon Petrochemical Company, which is the only isocyanate producer in Iran and is part of the largest petrochemical holding group in Iran, the Persian Gulf Petrochemical Industries Company (PGPIC). Its products mainly include toluene diisocyanate (TDI) and methylene diphenyl diisocyanate (MDI). These products are the chemical raw materials for polyurethane foams, coatings, and adhesives, widely used in various products ranging from automotive seats to building insulation materials.

Karoon Petrochemical Company has a total isocyanate production capacity of 80,000 tons per year, including 40,000 tons per year each for MDI and TDI. The company also produces other petrochemical products such as hydrochloric acid, nitric acid, o-toluenediamine, m-toluenediamine, nitrobenzene, and aniline.

The Israeli military has also confirmed that they attacked multiple locations within the Mahshahr petrochemical economic zone in Iran. Similar attacks by Israel on Iranian military and industrial facilities occurred in April 2026, and this round of attacks represents a clear escalation. Each round of attacks targets infrastructure that Israel claims is related to Iran's missile capabilities, while Iran characterizes these attacks as unwarranted aggression against civilian economic assets. The Mahshahr petrochemical zone is located in Khuzestan province in southwestern Iran, which is rich in oil resources and borders Iraq.

In addition to the missile attack on Karoon Petrochemical, Sadara, another major MDI and TDI producer in the Middle East, confirmed on March 31, 2026, that its integrated production complex in Jubail, Saudi Arabia, had been temporarily shut down due to ongoing supply chain disruptions.

Sadara, a joint venture between Saudi Aramco, the Saudi Arabian oil giant, and the American chemical company Dow, is an important producer of polyurethane raw materials in the Middle East.

According to publicly disclosed information, Sadara’s integrated production complex in Jubail, Saudi Arabia has an annual production capacity of 1.5 million tonnes of ethylene and 400,000 tonnes of propylene, as well as supporting production capacities of 750,000 tonnes per year of LLDPE/HDPE, 350,000 tonnes per year of LDPE, 330,000 tonnes per year of propylene oxide, 360,000 tonnes per year of ethylene oxide, and 400,000 tonnes per year of polyether polyols. In addition, the integrated production complex also has production capacities of 200,000 tonnes per year of TDI and 400,000 tonnes per year of MDI.

The Karoon petrochemical complex was hit by a missile strike, and with the Sadara integrated production site still shut down, MDI and TDI production in the Middle East has been almost completely paralyzed.