Covestro and Xinquan Forge Global Partnership to Drive Automotive Innovation and Sustainability

Covestro and Xinquan Forge Global Partnership to Drive Automotive Innovation and Sustainability

(IN BRIEF) German materials manufacturer Covestro has announced a global partnership with Chinese automotive trim company Xinquan Automotive during the China International Import Expo in Shanghai. This strategic alliance aims to strengthen Xinquan’s presence in North America, Europe, and ASEAN countries while enhancing its global standing in the automotive industry. Covestro, known for its innovative solutions in the automotive sector, will leverage its expertise and extensive network to support Xinquan’s expansion efforts. The partnership focuses on pioneering technologies and sustainable solutions, catering to the evolving demands of the global automotive market. Additionally, the collaboration will explore low-carbon polyurethane solutions for vehicle interiors and electric vehicle battery packs, contributing to carbon reduction goals and circular economy practices in the automotive industry.

(PRESS RELEASE) LEVERKUSEN, 10-Nov-2023 — /EuropaWire/ — German materials manufacturer Covestro has forged a global partnership with Chinese automotive trim company Xinquan Automotive at the China International Import Expo in Shanghai. This alliance seeks to strengthen the China business and enhance international collaboration, supporting Xinquan’s expansion into North America, Europe, and ASEAN countries. The Chinese company is dedicated to innovation, aiming to establish itself as a global player in the automotive industry. Partnering with Covestro provides Xinquan access to Covestro’s wealth of expertise and extensive global network. This partnership is focused on pioneering technologies and sustainable solutions that align with the dynamic requirements of the global automotive market.

Joining forces for global automotive advancement

Covestro excels in offering a diverse array of solutions for the automotive industry. Polyurethane, invented by Otto Bayer at Covestro’s predecessor company Bayer, is the vital material for automotive interiors. Polyurethane-based automotive interior applications, such as instrument panels, door panels, and center armrests, offer a soft, tactile feel, enhancing the comfort of both drivers and passengers. Polyurethane materials are known for their lightweight properties, minimal odor, and low levels of volatile organic compounds. These attributes create a comfortable and environmentally compatible interior environment, answering key demands of the automotive industry.

Having cultivated a successful cooperation with Xinquan for ten years, Covestro possesses a deep understanding of the evolving requirements of Chinese enterprises striving to expand their global presence. Xinquan’s global expansion strategy involves localizing research, production, and sales, in the respective regions. Its plant in Mexico has already started production last year, and there are plans for a North American technical center along with new facilities in Europe and ASEAN.

Covestro is well-equipped to effectively support Xinquan’s global aspirations. With its focus on innovation and research, Covestro has established ten innovation hubs across America, Asia and Europe. Furthermore, Covestro operates production facilities in Mexico and the U.S., where they have delivered polyurethanes to Xinquan’s new plant in Mexico. The partnership exemplifies the effectiveness of globalization in driving innovation and highlights Covestro’s commitment to globalization and expanding its presence in key markets.

“Covestro thrives on dynamic global partnerships, fueling innovation and tailoring solutions for the automotive industry. Together, we power our customers’ global expansion and zero-carbon journey. At Covestro, customer centricity isn’t just a phrase – it’s our energizing force, creating unmatched value through vibrant collaborations,” said Christine Bryant, Head of the Tailored Urethanes Business Entity at Covestro.

Low-carbon polyurethane solutions for auto interiors and new energy vehicles

Expanding their technical collaboration, Covestro and Xinquan will harness Covestro’s global R&D capabilities to develop low-carbon polyurethane solutions for vehicle interiors by using partially bio-based raw materials. Besides, the cooperation extends to the development of polyurethane applications for electric vehicle battery packs. This partnership is intended to assist the automotive industry in attaining its carbon reduction objectives and embracing circular economic practices.

“During Xinquan’s global expansion, we have worked with Covestro closely to share resources and complementary advantages. By improving production efficiency and quality, reducing costs and risks, Xinquan has strengthened its core competitiveness,” said Zhihua Tang, Chairman of Xinquan. “With this new global partnership, we will jointly promote technological innovation and low-carbon applications of polyurethane materials to advance the sustainable development in the automobile industry.”

For a closer look at Covestro’s solutions for a fully circular future at the CIIE, visit us at booth 3B6-05, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2023.

About Xinquan Automotive:

Xinquan Automotive is a Shanghai main board listed company (stock code: 603179), which specializes in the design, manufacture, import and export of automotive interior and exterior trim system components and molds. The company was established on April 28, 2001, and currently has 25 domestic subsidiary companies, 3 overseas subsidiaries, 1 technical center, 1 national CNAS-certified experimental center. As an overall automotive trim solution provider, the company was awarded as one of China’s top 100 auto parts suppliers. With professional capabilities in R&D and services, the company provides automobile manufacturers with automotive trim assembly products, including instrumentation plate assembly, overhead filing cabinet assembly, door panel, column guard plate assembly, water trough cover assembly and bumper assembly.

About Covestro:

Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Covestro supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Covestro are also used in sectors such as sports and leisure, cosmetics and health, as well as in the chemical industry itself.

The company is committed to becoming fully circular and is striving to become climate neutral by 2035 (scope 1 and 2). Covestro generated sales of EUR 18 billion in fiscal 2022. At the end of 2022, the company had 50 production sites worldwide and employed approximately 18,000 people (calculated as full-time equivalents).

Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Media Contact:

Frank Rothbarth
Global Trade Media Relations – Covestro
mailto: frank.rothbarth@covestro.com
+49 175 3025363

Richard Fu
Corporate Communications, Covestro China
mailto: richard.fu@covestro.com
+86 21 80208452

SOURCE: Covestro AG