Covestro Initiates Construction of TPU Manufacturing Plant in China

Covestro has taken a significant step forward in expanding its presence in China by breaking ground on a state-of-the-art thermoplastic polyurethane (TPU) production facility in Zhuhai. This strategic investment, initially announced in February, represents a pivotal moment for the company's commitment to growth and innovation in the region.

The TPU plant is designed to be developed in multiple phases, ultimately reaching an impressive annual production capacity of 120,000 tonnes, positioning it as Covestro's largest TPU production site worldwide. The first phase, capable of producing 30,000 tonnes per year, is scheduled for mechanical completion in 2025, with the final expansion phase expected to conclude in 2033.

TPU, a versatile thermoplastic material with a wide range of applications, serves industries such as sports footwear, consumer electronics (smart speakers and cellphone cases), automotive (including paint protection films), and the protection of wind turbine blades. Covestro's investment in this facility reflects its commitment to meeting the evolving demands of these industries with innovative and sustainable solutions.

Dr. Andrea Maier-Richter, the head of TPU at Covestro, conveyed her enthusiasm for this development by stating that they were excited to announce the commencement of construction at their new TPU site. She pointed out that it indicated their commitment to enhancing their production network for their Solutions & Specialties business entities as a whole and specifically for the TPU business. She mentioned that it would bolster their position as one of the leading global TPU suppliers and position them strategically within crucial value chains.

The establishment of this new TPU facility positions Covestro to provide high-performance, sustainable solutions to its customers with increased speed and flexibility. Under the Covestro CQ (Circular Intelligence) label, products manufactured at the Zhuhai site will consist of at least 25% alternative, non-fossil raw materials, including recycled and bio-based resins. This commitment to circularity aligns with Covestro's dedication to sustainability and reducing its environmental footprint. Furthermore, the production processes at the site will incorporate cutting-edge technologies and operate on 100% renewable energy sources, reinforcing the company's commitment to environmental responsibility.

Covestro China President Holly Lei emphasized the broader strategic implications of this investment, stating, "Together with recent investments in new plants for elastomers and polyurethane dispersions and a facility for the mechanical recycling of polycarbonates at the site on the outskirts of Shanghai, our new site for TPU in Guangdong Province in southern China aims to capture the robust growth of the core industries served by our Solutions & Specialties business entities in China, the region, and worldwide."