Covestro broke ground on its new Thermoplastic Polyurethanes (TPU) production site in Zhuhai, China. The new site, which will be built in three phases, is expected to produce up to 120,000 tons of TPU annually after the final phase of expansion.
The mechanical completion of the first phase is estimated for 2025. This 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 final phase 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,” commented 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.”
The site will span across 45,000 square meters upon completion. With its potential maximum capacity of up to 120,000 tons it will then also be Covestro’s largest TPU site worldwide.
With the new TPU site, Covestro aims to provide high-performance yet sustainable solutions to its customers faster and more flexibly. To that end, Covestro will eventually offer products with the label “CQ” at the new site in Zhuhai. Products labelled as such consist of at least 25 percent alternative, non-fossil raw materials. The site will also use the most advanced production technologies and be run on 100 percent renewable power.
