Covestro Invests Millions in China to Boost Production Capacity

On February 25th, Covestro's subsidiary in China, Covestro Resin Manufacturing (Foshan) Co., Ltd., signed a significant investment and expansion agreement with the Shunde District People's Government. This agreement will see Covestro increase its investment in Shunde's existing production base by adding a new production line, thereby strengthening its local manufacturing capabilities and global supply chain.

This move reflects Covestro's long-term confidence in the Chinese market and serves as a benchmark case for Shunde's efforts to attract foreign investment through a high-quality business environment.

As a wholly-owned subsidiary of the German giant Covestro, Covestro Resin Manufacturing (Foshan) plays a crucial role in the company's global operations. With 48 production sites and approximately 17,500 employees worldwide, Covestro is a leading manufacturer of high-tech polymer materials. In 2023, the company reported total revenues of €14.762 billion, with €3.1 billion (21%) coming from the Chinese market, highlighting the significant contribution of this region to its global business.

Covestro's representatives stated that this expansion aims to meet the increasing demand for water-based environmentally friendly coatings, reduce reliance on imported products from Europe, and further support the strategic layout of product supply chains in Southeast Asia and globally.

The Shunde District boasts several advantages that make it an attractive investment destination. Covestro's leadership emphasized the area's superior location, comprehensive industrial support, efficient government services, and favorable business environment as key factors in their decision to continue investing in Shunde.

In 2021, Covestro acquired the Dutch Royal DSM's factory in Beijiao, Shunde, establishing its resin manufacturing base. Since then, Shunde has been a critical strategic hub for Covestro in China.

Looking ahead, Covestro aims to deepen its cooperation with Shunde, solidifying its leading position in the Chinese market while driving growth in its global operations and reinforcing its status as a leader in high-tech polymer materials.

Liu Jie, a member of the Foshan Municipal Committee and Executive Vice Mayor, expressed that in an era of rising global economic uncertainty, Covestro's continued investment in Shunde showcases their commitment as a "true friend." He assured that Foshan will do everything possible to support the implementation of projects, allowing companies to invest confidently and thrive, and welcomed Covestro to deepen its investment in Foshan to share in mutual benefits.