Covestro: New TPU production site in Zhuhai goes into operation

Bird´s-eye view of Covestro´s new TPU production site in Zhuhai, southern China - (Image: Covestro).

Covestro has started production at a new site for thermoplastic polyurethanes (TPU) in Zhuhai, in the southern Chinese province of Guangdong. With the commissioning of the first construction phase, the company is strengthening its regional supply capabilities in China and the Asia-Pacific region.

The first expansion stage of the plant is designed for an annual capacity of around 30,000 tonnes of TPU. The investment, which was announced in 2023, amounts to a mid double-digit million euro figure. The facility is being developed on a total site area of 45,000 square meters and will be implemented in three phases. Once all construction phases are completed—planned for the 2030s—the site is expected to reach a total capacity of up to 120,000 tonnes per year. This will make Zhuhai Covestro’s largest TPU production site worldwide.

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With the new plant, Covestro is pursuing its strategy of manufacturing products as close as possible to the respective sales markets. The aim is to serve the growing demand for TPU—among others from the IT, automotive and footwear industries—in southern China and the surrounding region, while shortening supply chains. The site is part of the company’s growth strategy in the Solutions & Specialties segment.

The production facility is complemented by existing and newly established regional innovation capacities. A TPU research and development center in Changhua and an application development center in Guangzhou support the Zhuhai site. These facilities are intended to consolidate and accelerate product and process development as well as customer-specific application design in the region.

The Zhuhai site is also designed for the production of TPU bearing the “CQ” label. These products are manufactured using the certified mass balance approach and contain, on a calculated basis, at least 25 percent alternative, non-fossil raw materials. This enables customers to support their own sustainability targets and reduce their CO₂ footprint, which is becoming increasingly important, particularly in the electronics industry.

With this investment, Covestro is further expanding its presence in the Greater Bay Area of southern China. Alongside Shanghai, the Guangdong region is thus establishing itself as another strategic focal point for the company in China, with close integration of production, research and application-oriented development.

More information: www.covestro.com

Covestro AG, Leverkusen, Germany

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