Covestro supports Xinquan Group to go global

● The two parties signed a global strategic cooperation agreement at the CIIE.

● Collaborative R&D to promote the development of the automotive industry in North America, Europe and ASEAN

● Further develop lightweight, low-carbon, low-odor polyurethane interior and new energy vehicle solutions

At the 6th China International Import Expo, materials manufacturer Covestro and Xinquan signed a global strategic cooperation agreement. Both parties intend to expand global business based in China and support Xinquan’s business expansion in North America, Europe, ASEAN and other regions. Xinquan insists on innovation and aims to join the global automotive industry chain. Through this strategic cooperation, Xinquan will connect with Covestro’s global network and material technology expertise. As a result, both parties will focus more on the development of innovative technologies and sustainable solutions that meet the needs of the global automotive market.

Join hands to promote the development of the global automotive industry

Covestro provides a variety of solutions for the automotive industry. For example, polyurethane invented by Covestro is an important raw material for automotive interiors. In applications such as instrument panels, door panels and center consoles, polyurethane can provide a soft touch and improve driver and passenger comfort. Moreover, polyurethane is lightweight, has low odor, and has low volatile organic compound (VOC) content. It can create an environmentally friendly and comfortable interior space and meet the important demands of the industry.

In the past ten years of cooperation with Covestro, as business volume has increased year by year, Xinquan has a deep understanding of the needs of Chinese enterprises in the process of expanding overseas markets. Xinquan’s global expansion strategy is upgrading towards the localization of the trinity of “research, production and sales”. Its Mexican factory was put into production last year, and its North American technology center and new factories in Europe and ASEAN are also under planning. Covestro focuses on innovation and R&D, and has ten innovation centers in the Americas, Asia and Europe, which can effectively support Xinquan’s global expansion vision. Covestro has provided polyurethane materials for Xinquan’s new factory in Mexico through its production bases in the United States and Mexico. The cooperation between the two parties reflects the important role that globalization plays in promoting innovation, and also highlights Covestro’s commitment to continue its presence in key markets around the world.

Christine, Global Head of Customized Polyurethane Business Unit at Covestro
Bryant said: “Covestro collaborates and innovates through global partnerships to provide customized solutions for the automotive industry. We fully support our customers in going global and moving towards zero-carbon transformation. Covestro is customer-centric and strives for win-win cooperation. This is what drives us forward and is the key to our value creation.”

Joint development of low-carbon polyurethane interior and battery solutions

According to the strategic agreement, Covestro and Xinquan will further deepen their technical cooperation, use Covestro’s global R&D resources, and focus on application research and development in two aspects: First, use partially bio-based raw materials to develop green, low-carbon, lightweight and low-odor products. Polyurethane car interior applications; second, expand related new applications of polyurethane in the field of new energy vehicle battery packs. The two parties aim to help the automotive industry achieve its carbon reduction goals and practice circular economy through cooperation.

Tang Zhihua, chairman of Xinquan Co., Ltd., said: “In the global expansion of Xinquan, Xinquan and Covestro cooperate closely, share resources, and complement each other’s advantages. By improving production efficiency and product quality, reducing costs and risks, we have improved our core competitiveness. . The two parties will jointly promote the technological innovation and low-carbon application of polyurethane materials in the automotive industry and promote the sustainable development of the automotive industry.”