Covestro Expands Polycarbonate Production in Ohio to Meet Growing Demand in North America

Covestro Expands Polycarbonate Production in Ohio to Meet Growing Demand in North America

(IN BRIEF) Covestro is investing a low triple-digit million Euro sum to expand its operations in Hebron, Ohio, by adding multiple production lines for polycarbonate compounds and blends. This expansion will support the growing demand for high-quality materials in industries like automotive, electronics, and healthcare in North America. The move is part of Covestro’s “Sustainable Growth” strategy and reinforces the company’s commitment to regional production. The expansion will be backed by a closer collaboration between Covestro’s R&D center in Pittsburgh and the Hebron site, driving technology transfer and supporting key industry transformations. The new production lines are scheduled to begin construction in 2025 and start operations by 2026.

(PRESS RELEASE) LEVERKUSEN, 8-Jan-2025 — /EuropaWire/ — Covestro AG (ETR: 1COV), a German producer of polyurethane and polycarbonate based raw materials and one of world’s leading polymer companies, has announced a significant investment, amounting to a low triple-digit million Euro sum, to expand its operations at its Hebron, Ohio site in the United States. The expansion will involve the construction of several new production lines and infrastructure to produce specialized polycarbonate compounds and blends, bolstering the company’s capacity in the Solutions & Specialties business for the American market.

Thorsten Dreier, Chief Technology Officer at Covestro, emphasized the importance of this investment as part of the company’s broader “Sustainable Growth” strategy. “This expansion of our U.S. compounding plant is crucial in helping us meet the rising demand for specialized polycarbonate materials. It strengthens our position in North America and enables us to grow alongside our customers while ensuring we provide reliable supply close to the market,” Dreier said.

The decision to expand production in Ohio comes in response to the increasing need for high-performance materials, especially in industries such as automotive, electronics, and healthcare in North America. Lily Wang, Head of the Engineering Plastics Business Entity at Covestro, highlighted the significance of the expansion: “Success in these industries requires not only a comprehensive portfolio of materials but also consistent quality and supply reliability, coupled with technical expertise. The added capacity will enable us to address our customers’ complex requirements for tailored, high-tech materials.”

Covestro already has an established research and development center in Pittsburgh, and this new expansion will further strengthen its U.S.-based compounding capabilities. The R&D center and the Hebron site will collaborate more closely in the future, driving the transfer of technology from laboratory innovations to industrial-scale production. This partnership is expected to support significant industry transformations, including the electrification of mobility, sustainable development, and digitalization.

Samir Hifri, Chairman and President of Covestro LLC, remarked on the strategic importance of the U.S. market to Covestro: “This expansion, coming shortly after our nearly 40 million Euro investment in our Pittsburgh R&D capabilities, underscores the critical role that our U.S. sites play in Covestro’s global strategy. This expansion will not only enhance our ability to serve customers but also reinforce our commitment to the Hebron community, our employees, and the U.S. market.”

Construction of the new production lines is slated to begin in 2025, with operations expected to commence by the end of 2026.

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, telecommunications and health, as well as in the chemical industry itself.

The company is geared completely to the circular economy. In addition, Covestro aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group’s Scope 3 emissions are also set to be climate neutral by 2050. Covestro generated sales of EUR 14.4 billion in fiscal year 2023. At the end of 2023, the company had 48 production sites worldwide and employed approximately 17,500 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 contacts:

Svenja Paul
Global Media Relations
svenja.paul@covestro.com
+49 173 3056862

Tina Stockhausen
Corporate Messaging & Content, Covestro
tina.stockhausen@covestro.com
+49 172 130 6043

Russell Glorioso
Head of U.S. External Communications
russell.glorioso@covestro.com
+1 412 413 2051
+1 724 799 0321

SOURCE: Covestro AG