Covestro builds new TPU production base in China

Covestro announced that it will invest hundreds of millions of euros in Zhuhai, Guangdong to build its largest thermoplastic polyurethane (TPU) production base, which will also be the largest investment project for Covestro's TPU business.

According to Covestro, TPU has many properties and is widely used. It can be used in electronic equipment such as sports shoe soles, sweeping robots, smart speakers and mobile phone casings, as well as various types of cars. The project reflects the company's continued commitment to invest in its Solutions and Specialty Chemicals business segments.

Lei Huanli, President of Covestro China, emphasized: "Through this major investment, Covestro will further expand its presence in China and seize the strong growth momentum of the global TPU market. The new base will have advanced production and innovation capabilities and is expected to Contribute to the high-quality development of China and the entire Asian market."

It is reported that the new base is located in Gaolan Port Economic Zone, Zhuhai, with a total area of about 45,000 square meters. After it is fully completed in 2033, it will have an annual production capacity of nearly 120,000 tons of TPU. The project will be constructed in three phases. The first phase plans to invest tens of millions of euros. It is expected to complete the mechanical completion by the end of 2025, achieve an annual production capacity of about 30,000 tons, and create about 80 jobs.

Lisa Ketelsen, head of Covestro's Thermoplastic Polyurethane Division Asia Pacific, said: "As a world-leading supplier of high-quality polymers, Covestro hopes to work with customers to create more innovative technologies and material solutions. By choosing Zhuhai, Covestro will continue to fully integrate into China's world-renowned IT, consumer electronics and footwear value chains, provide support to Asia-Pacific and global customers, and be able to provide more sustainable solutions faster and more flexibly."

Covestro believes that most of the current TPU market demand and growth prospects come from Asia, especially China. Andrea Maier-Richter, Global Head of Covestro's Thermoplastic Polyurethane Business Unit, said: "The new investment plan clearly shows that Covestro hopes to maintain long-term win-win cooperation with local customers and partners."

According to reports, the new investment project will include an innovation center, where resident researchers will be responsible for customizing material formulas or formula adjustments to quickly respond to customer needs. Developing sustainable and more circular solutions is one of its long-term core goals. In addition, the base will be equipped with advanced production technology and use 100% green electricity. The product line will cover injection-grade TPU grades for shoe materials and various electronic devices, as well as extrusion-grade grades for cables, hoses and pipes or automotive parts.