I D
× COMMENTARYCOVER STORYIN THE NEWSNEWSFRONTSCHEMENTATOR + Show More
Chementator Briefs
Caprolactam Genomatica (San Diego, Calif.; www.genomatica.com) recently announced the production…
BUSINESS NEWSTECHNICAL & PRACTICALFEATURE REPORTFACTS AT YOUR FINGERTIPSTECHNOLOGY PROFILESOLIDS PROCESSINGEQUIPMENT & SERVICESFOCUSNEW PRODUCTS + Show More

Comment Business & Economics

Covestro raises stake in TPU joint venture

By Scott Jenkins |

Covestro (Leverkusen, Germany; www.covestro.com) accelerates the expansion of its thermoplastic polyurethanes (TPU) business by raising its stake in the joint venture DIC Covestro Polymer Ltd. (DCP) from 50 to 80%. DCP, established as a 50/50 joint venture in the year 2000, is a leading company in the Japanese TPU industry. The investment is part of Covestro’s expansion of its global TPU business. The total investment sums up to a low-double-digit million EUR. Both parties agreed to not disclose any further financial details of the transaction. Closing of the deal is planned for early second quarter 2019, subject to the approval from the relevant authority.

Covestro is a leading supplier of high-performance resins and globally a top 3 producer of TPU. The TPU business is part of the coatings, adhesives, specialties (CAS) segment and accounted for approximately 10% of the segment sales in FY 2017. The global TPU industry is estimated to grow at a long-term average of 6% p.a., while Covestro outgrew the industry with double-digit core volume growth per year in the past three years.

DIC Corporation (DIC) will continue to support the success of DCP with its industry network, strong brand name, and as a reliable local partner. Production and R&D by DCP will continue at Sakai plant located in the DIC facility in Sakai, Osaka Prefecture, getting support from DIC such as supplying feedstocks and providing services on site. DIC is also an important partner for Covestro in other coatings, adhesives and specialties business. The acquisition complements Covestro’s recent organic global capacity expansions of TPU sites in New Martinsville, W.Va. (USA) and Changhua (Taiwan), which raises the respective annual TPU production capacities by approximately 25% each.

Related Content
A new range of thermoplastic seals
VarioPur (photo) is a new product range that includes three high-performance materials based on thermoplastic polyurethanes (TPU/AU). Both abrasion and…

Chemical Engineering publishes FREE eletters that bring our original content to our readers in an easily accessible email format about once a week.
Subscribe Now
Improving chemical production processes with IIoT and AI technologies
New filtration technology for highly corrosive media
PTA production: Lowering OPEX without compromising on quality
Sure that zero means zero in your zero-liquid discharge (ZLD) process?
How separation processes profit from Industrial Internet of Things (IIoT) solutions

View More