Covestro has officially commenced production at its new thermoplastic polyurethane (TPU) manufacturing site in Zhuhai, a key coastal city in South China. The first phase of the project represents a mid-double-digit million-euro investment and is designed to deliver an annual capacity of approximately 30,000 tons of TPU, addressing rising demand across industries such as automotive, consumer electronics, IT, and footwear.
This milestone marks a significant step in Covestro’s region-for-region strategy and highlights the company’s continued expansion within its Solutions & Specialties business segment.
A Long-Term Investment Supporting Regional Growth
First announced in 2023, the Zhuhai TPU site is being developed on a 45,000-square-meter site and will be constructed in three phases. Upon completion of the final phase in the 2030s, the facility is expected to reach a maximum annual capacity of up to 120,000 tons, making it Covestro’s largest TPU production site globally.
The investment reflects Covestro’s commitment to strengthening local production capabilities and improving supply reliability for customers in Asia Pacific’s high-growth markets.
Strengthening Customer Proximity and Service Capabilities
Covestro emphasized that the Zhuhai site plays a key role in enhancing customer responsiveness and service flexibility across the region. By producing TPU closer to end markets, the company can better support customers with shorter lead times, localized solutions, and closer technical collaboration.
The new facility enables Covestro to deliver innovative TPU solutions that meet evolving market requirements while reinforcing its competitive position in specialty materials.
Integrated Regional Network of Production, R&D, and Application Development
The Zhuhai production site is strategically supported by a regional TPU R&D Center in Changhua and a TPU Application Development (AD) Center in Guangzhou. Together, these facilities form an integrated regional network combining manufacturing, fundamental research, and customer-oriented application development.
This setup is expected to generate strong regional synergies, allowing Covestro to provide tailored TPU solutions for industries located in South China, including automotive, consumer electronics, and footwear, while accelerating innovation through close collaboration with customers.
Commitment to China and the Greater Bay Area
The Zhuhai site further underscores Covestro’s long-term commitment to China and aligns with the country’s goals for high-quality growth and sustainable development. With Guangdong—particularly the Greater Bay Area—emerging as a strategic hub alongside Shanghai, Covestro continues to expand its localized manufacturing and innovation footprint.
This investment strengthens Covestro’s role as a reliable partner supporting China’s industrial transformation while serving customers across the broader Asia Pacific region.
Sustainable TPU Solutions with Reduced Carbon Footprint
The Zhuhai facility is capable of producing TPU products labeled “CQ”, indicating that the materials contain at least 25% alternative, non-fossil raw materials. These solutions help customers reduce the carbon footprint of their final products, a growing priority in industries such as electronics, automotive, and consumer goods.
By integrating sustainability into production from the outset, the new site supports Covestro’s broader sustainability strategy and responds to increasing global demand for low-carbon, high-performance materials.
0 comments