China: On February 23, Covestro made the official announcement on its site that it would invest hundreds of billions of euros in Zhuhai, Guangdong, to construct the largest production base for Thermoplastic Polyurethane Elastomer (TPU). This would be the largest investment the company would ever make in its Thermoplastic Elastomer business. Thermoplastic Elastomer is a very adaptable plastic material, a true multi-talent with a wide range of qualities for a variety of applications, including sports shoe soles, IT gadgets like sweepers, smart speakers, phone cases, or automotive applications.

The new site will eventually cover 45,000 square meters, be finished by 2033, and it will be able to produce nearly 120,000 Tons of TPU per year on an annual basis.

In addition, the site will run entirely on renewable energy and make use of the most cutting-edge manufacturing methods. It will produce extrusion grades for cables, hoses, and tubes or automotive applications, as well as injection molding grades for footwear and a wide range of IT gadgets.

With this new Thermoplastic Elastomer plant, Covestro anticipated a rapid and substantial expansion of the global Thermoplastic Elastomers market, particularly in China and Asia. The manufacturing facility will be able to meet demand in Europe and North America as well as the expanding Asian markets.

The investment will also include an innovation center that will allow researchers on-site to design individualized material formulas and adjust those formulas to meet customer demands in very short cycles.

During the week that ended on March 3, 2023, the price of TPU on a FOB Shanghai basis hovered around USD 3500 per MT.

This new plant will reduce the global demand for Thermoplastic Elastomer in the future and decline the emission level in Zhuhai because the plant will run on green energy. Moreover, this investment will create employment opportunities in the Chinese market.