Covestro to Expand TPU Business in China with New Facility, Focusing on Sustainable Offerings

Shoe soles such as for these hiking boots are one of many end products in which TPU can be found – and which are manufactured in southern China, among other places. © VAUDE

(IN BRIEF) Covestro, a leading high-performance polymers manufacturer, has announced plans to build its largest Thermoplastic Polyurethanes (TPU) site in Zhuhai, China, with an overall investment in the low three-digit million Euro range. The new facility will eventually span across 45,000 square meters and is expected to achieve a production capacity of nearly 120,000 tons of TPU per year. The site will feature an innovation center, enabling researchers to design customized material formulas and focus on developing sustainable and circular solutions. The facility will be built in three phases, with the first phase set to be completed by the end of 2025, leading to the creation of about 80 new jobs. The new TPU site underscores Covestro’s commitment to innovation, sustainability, and growth in China.

(PRESS RELEASE) LEVERKUSEN, 23-Feb-2023 — /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 plans to build its largest Thermoplastic Polyurethanes (TPU) site in Zhuhai, China. This investment, in the low three-digit million Euro range, represents the company’s largest investment in its TPU business.

TPU is a highly versatile plastic material, suitable for a wide range of applications including sports shoe soles, IT devices such as smart speakers and phone cases, as well as automotive parts. The new facility will be located in the Zhuhai Gaolan Port Economic Development Zone in Guangdong province and will eventually span across 45,000 square meters.

Expected to achieve a production capacity of nearly 120,000 tons of TPU per year, the facility will be built in three phases, with the first phase set to be completed by the end of 2025. This will lead to a production capacity of about 30,000 tons per year and the creation of about 80 new jobs. The initial investment for this phase lies in the mid double-digit million Euro range.

In addition to production capabilities, the site will also feature an innovation center where researchers will be able to design customized material formulas and make formula adjustments to meet customer demands. The company’s goal is to develop sustainable and circular solutions, with a focus on the recently introduced, sustainable “CQ” product line. Products under this line consist of at least 25% alternative, non-fossil raw materials.

“This investment shows our ongoing commitment to growth in our Solutions & Specialties business entities”, said Covestro CCO Sucheta Govil. “With this new plant for TPU we want to capture the expected fast and high market growth of the TPU market globally, and especially in Asia and China. The production site will be able to serve both the growing Asian markets, as well as demand in Europe and North America.”

The new facility will leverage the most advanced production technologies and will be run on 100% green power, in line with Covestro’s commitment to sustainability. Injection molding grades for footwear and a wide range of IT devices, as well as extrusion grades for cables, hoses and tubes or automotive applications will be produced at the site.

Covestro’s investment in this new TPU facility underscores its commitment to innovation, sustainability and growth in China, one of the company’s key strategic markets.

“I’m delighted to share this important news for our Business Entity. This new plant will enable us to be in close proximity to our customers and the value chains in the IT, consumer electronics, footwear and other industries”, said Dr. Andrea Maier-Richter, Head of TPU at Covestro. “The majority of the TPU market and its growth prospects are in Asia and particularly in China. Our investment there shows our clear intention: We want to remain successful with our customers and partners in the long run.”

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 15.9 billion in fiscal 2021. At the end of 2021, the company had 50 production sites worldwide and employed approximately 17,900 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

Markus Kleine-Beck
Corporate Messaging & Content
markus.kleine-beck@covestro.com
+49 173 2320 686

SOURCE: Covestro AG