Covestro to build its “largest TPU site” in China

Leverkusen, Germany – Covestro AG has announced plans to build its largest production site for thermoplastic polyurethanes (TPUs), in Zhuhai, southern China.

The facility, to be built in three phases through to 2033, will have a production capacity to produce 120 kilotonnes per annum (ktpa) of TPUs once fully on-stream.

In a 23 Feb statement, the German polymers company said it is making an overall investment in the “low three-digit” million Euro range to establish the plant.

Located in the Zhuhai Gaolan port economic development zone in Guangdong province, the new site will eventually span across 45,000 square metres, according to Covestro.

Mechanical completion of the first phase, with the capacity to produce 30ktpa of TPUs, is estimated for the end of 2025.

The initial investment for the phase will be at a “mid double-digit” million Euro range.

"This investment shows our ongoing commitment to growth in our solutions & specialties business entities", said Covestro chief commercial officer Sucheta Govil.

The production site, he went on to say, will be able to serve both the growing Asian markets, as well as demand in Europe and North America.

Covestro did not provide further details on what types of TPUs will be manufactured at the site.

THe company did state that an innovation centre would be part of the investment, enabling researchers to design customised materials formulae on-site.