Covestro will build its largest Thermoplastic Polyurethanes (TPU) site in Zhuhai, China. With an overall investment in the low three-digit million Euro range it will also be the company’s largest investment in its TPU business. TPU is a highly versatile plastic material, a real multi-talent that offers a broad range of properties for a diverse set of applications like sports shoe soles, IT devices such as sweepers, smart speakers and phonecases or automotive applications. The investment shows the company’s ongoing commitment to growth in its Solutions & Specialties business entities.
“With this new major investment, we will further expand our footprint in China, as we hope to capture the robust growth potential in the TPU market around the globe,” said Holly Lei, President of Covestro China. “The new site with cutting-edge manufacturing and innovation capabilities is also expected to contribute to the high-quality development of the markets in China and all of Asia.”
Located in the Zhuhai Gaolan Port Economic Development Zone in Guangdong province, the new site will eventually span across 45 000 square meters. It shall be completed by 2033 and is expected to achieve a production capacity of nearly 120 000 tons of TPU per year. It will be built in three phases. The mechanical completion of the first phase is estimated for the end of 2025. This will lead to a production capacity of about 30 000 tons per year and the creation of about 80 new jobs. The initial investment for this phase lies in the mid double-digit million Euro range.
“As a world-leading supplier of high-quality polymer materials, we hope to create more innovative technology and material solutions together with our customers,” said Lisa Ketelsen, Head of Covestro TPU APAC. “By locating the site in Zhuhai, we will continue to be fully integrated into China’s world-renowned IT, consumer electronics, and footwear value chains, while also supporting our Asia-Pacific and global customers. We will be faster and more flexible in providing more sustainable solutions.”