Covestro breaks ground on major TPU production project in China

Leverkusen, Germany – Covestro AG has broken ground on its project to build a major production site for thermoplastic polyurethanes (TPUs), in Zhuhai, southern China.

To be built in three phases through to 2033, the site will have a capacity to produce 120 kilotonnes per annum (ktpa) of TPUs when fully on-stream.

As announced in September, the German polymers maker 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 site will eventually span 45,000 square metres, stated Covestro.

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

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

The production site, Govil 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 details about the types of TPUs to be made at Zhuhai, but listed target applications as including sport shoes, automotive parts, wind turbines and phone cases.

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

Another target for Covestro is for the unit to produce TPUs with enhanced sustainability, with products comprising at least 25% non-fossil raw materials.

Further highlighting its environmental credentials. Covestro said the Chinese facility would be operated using 100% renewable power.

Zhuhai is the latest in a series of investments by Covestro in China, including the start-up of a new elastomers plant in Shanghai (ERJ report).

These projects, Covestro expects, will “capture robust growth of the core industries” served by our the company in China and elsewhere.