Covestro breaks ground on new TPU site in China
The new site will be built in three phases and is expected to achieve up to a maximum annual production capacity of 120,000 tons.
German materials specialist Covestro AG has broken ground on its new thermoplastic polyurethanes (TPU) production site in Zhuhai, China.
In a Sept. 27 news release, Covestro officials said the new site will be built in three phases and is expected to achieve up to a maximum annual production capacity of 120,000 tons of TPU after the final phase of expansion. The mechanical completion of the first phase is estimated for 2025, and will lead to a production capacity of about 30,000 tons per year. The initial investment for this first phase lies in the mid double-digit million Euro range, the release said, and the final phase of the site is expected to be completed in 2033.
TPU is a versatile plastic material used in a variety of applications such as sports shoes, IT devices such as sweepers, smart speakers, phone cases, automotive applications like paint protection film or for the protection of wind turbine blades.
“We are excited to announce that the construction on our new TPU site commences. It shows our commitment to strengthen our production network for our Solutions & Specialties business entities overall and for the TPU business in particular,” said Dr. Andrea Maier-Richter, head of TPU at Covestro. “It reinforces our position as one of the leading global suppliers of TPU and puts us right where important value chains are.”
Once completed, the site will span across 45,000 square meters. With its potential maximum capacity of up to 120,000 tons, it will be Covestro’s largest TPU site worldwide.
Covestro said the new TPU site will enable it to provide “high-performance yet sustainable solutions to its customers faster and more flexibly.” At the new site in Zhuhai, Covestro shall to that end eventually offer products with the label “CQ”. “Products labelled as such consist of at least 25 per cent alternative, non-fossil raw materials,” the release said.
The site will also utilize the most advanced production technologies and be run on 100 per cent renewable power