Covestro Initiates Recycled Polycarbonate Supply in Asia Pacific

Covestro, a leading provider of engineering materials, has inaugurated operations at its inaugural mechanical recycling (MCR) compounding line for polycarbonate (PC) at its integrated facility in Shanghai. This state-of-the-art line is poised to manufacture over 25,000 tonnes annually of premium-grade polycarbonates and blends, integrating mechanically recycled materials. The surge in demand for post-consumer-recycled (PCR) plastics, especially in sectors such as electrical and electronic products, automotive, and consumer goods, motivated this strategic move.

Covestro has set ambitious targets, aiming to supply more than 60,000 tonnes of recycled-content PC material annually in the Asia Pacific region by 2026. As part of this commitment, the company recently repurposed a compounding line at its Map Ta Phut site in Thailand for mechanically recycled PC.

Lily Wang, the Head of Covestro’s Business Entity Engineering Plastics, remarked that the investments would allow the company to address the increasing demand for PCR polycarbonates, thereby improving its capacity and efficiency. Operationalizing new or repurposed capacity positions Covestro to support downstream customers in their sustainability journey, thereby contributing to the transformation of industries towards a circular and climate-neutral future.

The global demand for PCR-content materials is witnessing a substantial uptick, driven by regulatory initiatives such as the European Union's proposed directive on end-of-life vehicles (ELV Directive), which establishes stringent benchmarks for recycled plastics utilization. Notably, industries like consumer electronics are anticipated to drive increased demand for recycled materials, underscoring the strategic importance of Covestro's initiatives in providing PCR polycarbonates.

Earlier this year, Covestro unveiled a groundbreaking polycarbonate with an impressive 90% recycled content. This innovative grade not only achieves remarkable whiteness and vivid colors but also boasts a sustainability feature—a 70% reduction in carbon footprint compared to its fossil-based virgin plastic counterpart. The achievement of such sustainability milestones involves a meticulous selection of high-quality recycled materials and precise optimization of material composition during the compounding process.

Covestro's ongoing program to enhance polycarbonate production capacity and capabilities across the Asia Pacific region is nearing completion. This initiative includes the addition of new production lines in Shanghai and Guangzhou, China, as well as Greater Noida, India, in recent times.These strategic projects, aimed at optimizing the regional production network, have been facilitated by the use of digital tools, contributing to cost reduction and efficiency improvements.

The upgrades in production capacity and capabilities are designed to meet the evolving market demands while simultaneously enhancing Covestro's ability to produce plastics with higher recycled content, aligning with sustainability goals and industry trends.