Covestro officially breaks ground on Zhuhai TPU production base

● Will become the company’s largest TPU production base in the future

● Enhance high-performance TPU production network to cope with global demand growth

● Equipped with advanced production technology and completely using green electricity

On September 27, Covestro held a groundbreaking ceremony for a new thermoplastic polyurethane (TPU) production base in Zhuhai, Guangdong. The company officially announced the investment project in February this year. The new base will be constructed in three phases. Once completed, the maximum annual TPU production capacity will reach 120,000 tons. The investment in the first phase of the project is tens of millions of euros, and the machinery is expected to be completed in 2025, achieving an annual production capacity of approximately 30,000 tons. All projects are expected to be completed in 2033.

TPU is a multifunctional plastic material whose applications include sports shoes and electronic devices such as sweeping robots, smart speakers and mobile phone cases. It can also be used for car paint protection film or fan blade protection.

Andrea, Global Head of Thermoplastic Polyurethanes Division at Covestro
Dr. Maier-Richter said: “We are pleased to announce the official start of construction of the new TPU site. This further reflects our commitment to continuously strengthen our Solutions and Specialty Chemicals business and especially the TPU business production network. It also consolidates our reputation as a Our position as one of the world’s leading TPU suppliers brings us closer to important value chains.”

When fully completed, the Zhuhai base will cover an area of 45,000 square meters, with a maximum annual production capacity of 120,000 tons, making it Covestro’s largest TPU production base in the world.

“We are committed to working closely with our customers and partners.” Lisa, Head of Asia Pacific, Covestro’s Thermoplastic Polyurethanes Division
Ketelsen said, “Guangdong is a manufacturing center for industries such as IT, consumer electronics and shoemaking. We believe that choosing Zhuhai will allow us to be close to customers and enhance collaboration. To this end, the second phase of the investment project will also include the construction of an innovation center and R&D personnel.” Custom material formulations can be designed and adjusted on-site to respond quickly to customer needs.”

With the new TPU base, Covestro will provide customers with high-performance sustainable solutions more quickly and flexibly. The Zhuhai base will also produce “CQ” (Circular
Intelligence) series TPU products, CQ is used to identify Covestro products that contain at least 25% alternative non-fossil raw materials. The new base will be equipped with the most advanced production technology and use 100% green electricity.

Lei Huanli, President of Covestro China, said: “From the South China TPU base to our newly built elastomer and polyurethane dispersion factory in the Shanghai integrated base and the dedicated production line for physical recycling of polycarbonate, these investments will help us’ solve Solutions and Specialty Chemicals’ business units capture strong growth opportunities in its key customer industries in China, Asia Pacific and globally.”

Providing sustainable and more circular solutions is one of the long-term important goals of Covestro and its new Zhuhai base.
To this end, the company is working to broaden the sources of its raw materials to reduce the use of petroleum and its derivatives. For example, the company already has the ability to supply products with a share of alternative raw materials (such as biomass) based on a mass balance approach, and is also actively exploring the use of recycled materials. In addition to reducing its reliance on fossil raw materials, the company continues to introduce clean energy into its factories and production processes to help it achieve its goal of making its operations climate neutral by 2035. By the end of 2023, renewable energy is expected to meet approximately 16% to 18% of Covestro’s global electricity needs.

The groundbreaking ceremony of the new TPU base, from left: Liu Wenping, deputy secretary of the party committee and deputy general manager of Shanghai Huanqiu Engineering Co., Ltd., Feng Fengmei, deputy mayor of Jinwan District, Zhuhai City, Zhuhai Investment Promotion Yan Jun, deputy director of the Department of Commerce, Wu Yeli, deputy director and second-level researcher of the Zhuhai Municipal Commerce Bureau, Lei Huanli, president of Covestro China, Stephan, global production and operation leader of Covestro’s thermoplastic polyurethane business unit
Dr. Ehlers, Covestro Asia Pacific Engineering Department Head Gao Zuomin, Covestro Thermoplastic Polyurethane Business Unit Asia Pacific Head Lisa Ketelsen, Covestro Shenzhen and Zhuhai Base Managing Director He Yanfeng