Covestro AG (Leverkusen, Germany) has commenced production at its new thermoplastic polyurethanes (TPU) manufacturing site in Zhuhai, a coastal city in South China. The first phase, representing a mid-double-digit million-euro investment, will produce approximately 30,000 tons of TPU annually, meeting growing demand for this versatile material across industries including IT, automotive and footwear.
Aerial view of the new TPU site of Covestro in Zhuhai in southern China. (Source: Covestro)
The investment in this entirely new site, originally announced in 2023, marks a significant milestone in Covestro’s region-for-region strategy and its commitment to growth in its Solutions & Specialties business. The Zhuhai site will be developed in three phases across a 45,000-square-meter area, with maximum production capacity estimated to reach 120,000 tons a year upon completion of the final phase, expected in the 2030s. This will then make it the company’s largest TPU production facility globally.
“The inauguration of our Zhuhai site represents a pivotal moment in Covestro’s growth strategy. This investment demonstrates our commitment to meeting the evolving needs of our customers across Asia Pacific while strengthening our position in high-growth markets,” said Monique Buch, Chief Commercial Officer of Covestro. “The facility will enable us to deliver innovative TPU solutions closer to our customers, enhancing our service capabilities and responsiveness.”
The Zhuhai site will be strategically supported by a regional TPU R&D Center in Changhua and a new TPU application development (AD) center in nearby Guangzhou, which integrate technical acumen with innovative solutions and tailored services. Together, these facilities are expected to generate powerful regional synergies through collaborative and complementary strengths, positioning Covestro optimally to serve its customers throughout the region.
“The site as well as the nearby R&D and AD capacities are state-of-the-art. Our site in Zhuhai furthermore significantly expands our global TPU production network and reinforces our strong market position in TPU in the region,” said Dr. Andrea Maier-Richter, Head of TPU at Covestro. “With our integrated regional setup combining production, fundamental research and customer-focused application development, we’re well-positioned to drive innovation and deliver tailored solutions that meet the specific requirements of diverse industries located in south China, like automotive, consumer electronics to footwear.”
“The Zhuhai site underscores Covestro’s long-term commitment to China and aligns with the country’s high-quality development and sustainability agenda. This investment further establishes Guangdong, with a particular focus on the Greater Bay Area, as Covestro’s strategic hub in China along with Shanghai, enabling us to deliver innovative solutions locally while supporting customers throughout Asia. We’re proud to contribute to China’s industry transformation and development as a reliable partner,” said Covestro China President Holly Lei.
The Zhuhai site is capable of producing TPU with the label “CQ”. Covestro materials with this designation contain at least 25 percent alternative, non-fossil raw materials, supporting customers in reducing their carbon footprint in final products, especially important in sectors such as electronics where sustainability has become a global trend.