Germany: Covestro AG is making a major statement with their largest ever investment in thermoplastic Polyurethanes (TPUs). At an overall cost in the low three-digit-million-euro range, this investment will fund the construction of the company’s largest TPU site yet at Zhuhai, China. TPUs are a highly versatile type of plastic that have an array of properties and uses, from sports shoe soles to IT devices like sweepers, smart speakers, and phone cases, all the way to automotive applications.

“This investment shows our ongoing commitment to growth in our Solutions & Specialties business entities,” stated 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.”

A new TPU production site is being established in Guangdong, China. Located in the Zhuhai Gaolan Port Economic Development Zone, it will span an expansive 45,000 square meters when completed in 2033. With a capacity of nearly 120,000 tons of TPU per year, the project will be built in three phases.

The completion of the first phase of a project is projected to be finalized by the end of 2025, resulting in an estimated production capacity of 30,000 tons per year. This phase will also create approximately 80 new job opportunities. The total cost for this phase is expected to be in the mid double-digit million Euro range.

I’m delighted to share this important news for our Business Entity. This new plant will enable us to be near our customers and the value chains in the IT, consumer electronics, footwear and other industries”, stated 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.”

To support sustainable progress and a circular economy, an investment is being made to establish an innovation center. This will enable researchers to design custom material formulas and adjust quickly in order to meet customer demands. This initiative is focused on providing long-term solutions for a more circular world.

CQ, a new sustainable product line, is gaining more attention in the marketplace. Featuring at least 25% alternative, non-fossil raw materials and adopting advanced production technologies and running on 100% green power, CQ products can now be found in footwear and IT devices with extrusion grades for cables, hoses & tubes and automotive applications.