Covestro starts production at new TPU site in China

Leverkusen, Germany – Covestro has started production at its new thermoplastic polyurethanes (TPU) manufacturing site in Zhuhai, a coastal city in south China, the company announced 22 Jan.

The first phase, representing a “mid-double-digit million-euro” investment, will produce 30 kilotonnes per annum (ktpa) of TPU to meet growing demand from industries such as IT, automotive and footwear.

Covestro announced the investment in the greenfield plant in 2023 as part of its broader “region-for-region strategy.”

The Zhuhai site will be developed in three phases with maximum production capacity estimated to reach 120ktpa in the 2030s.

Once completed, the site will be Covestro’s largest TPU production facility globally, said the German materials supplier 22 Jan.

“This investment demonstrates our commitment to meeting the evolving needs of our customers across Asia Pacific while strengthening our position in high-growth markets,” said Monique Buch, chief commercial officer.

The facility, she said, will enable the company to deliver “innovative TPU solutions closer to our customers,” and enhance its service capabilities and responsiveness.

The Zhuhai site will be supported by Covestro’s regional TPU R&D centre in Changhua and a new TPU application development (AD) centre in nearby Guangzhou.
Together, said Covestro, these facilities are expected to “generate powerful regional synergies” enabling the company to serve its customers throughout the region.

The Zhuhai site is capable of producing TPU with the label “CQ,” indicating that the material contains at least 25% alternative, non-fossil raw materials.