Groundbreaking for new TPU production site of Covestro in China

Covestro broke ground on its new thermoplastic polyurethanes (TPU) production site in Zhuhai, China. The investment had been announced in February. The new site will be built in three phases and is expected to achieve up to a maximum annual production capacity of 120,000 tons of TPU after the final phase of expansion. The mechanical completion of the first phase is estimated for 2025. This will lead to a production capacity of about 30,000 tons per year. The final phase is expected to be completed in 2033. Once completed, the site will span across 45,000 square meters. With its potential maximum capacity of up to 120,000 tons it will then also be Covestro’s largest TPU site worldwide.

The new TPU site will enable Covestro to provide high-performance yet sustainable solutions to its customers faster and more flexibly. At the new site in Zhuhai, Covestro shall to that end eventually offer products with the label "CQ". Products labelled as such consist of at least 25 percent alternative, non-fossil raw materials. The site will also utilize the most advanced production technologies and be run on 100 percent renewable power.

"We are excited to announce that the construction on our new TPU site commences. It shows our commitment to strengthen our production network for our Solutions & Specialties business entities overall and for the TPU business in particular," said Andrea Maier-Richter, Head of TPU at Covestro. "It reinforces our position as one of the leading global suppliers of TPU and puts us right where important value chains are."

"We are committed to working closely with our customers and partners," commented Lisa Ketelsen, Head of TPU in APAC at Covestro. "As Guangdong province is a major hub for the IT, consumer electronics, footwear and other industries, we believe that locating our production in close proximity enables us to collaborate optimally. To underline that, an innovation center will be part of the next phase of our investment, enabling our researchers to design customized material formulas and do formula adjustments to meet customer demands within very short cycles."

"Together with recent investments in new plants for Elastomers, Polyurethane Dispersions and a production line for the mechanical recycling of polycarbonates in our site on the outskirts of Shanghai, this new site for TPU in southern China shall capture the robust growth of the core industries served by our Solutions & Specialties business entities in China, the region and worldwide," concluded Holly Lei, President of Covestro in China.