Covestro to Build TPU Application Development Center in South China

TAGS:  Electrical & Electronics   

Covestro will begin constructing a new Thermoplastic Polyurethanes (TPU) APAC application development (AD) Center in Guangzhou, South China.

This is the second major investment in TPU in a short time. Last year, the company started building its largest TPU plant in Zhuhai, a nearby coastal city.

Focus on Films (PPF), Specialty Cables, Consumer Electronics and Footwear

The new AD center is designed to bring Covestro closer to its customers. It will combine technical expertise with innovative solutions and tailored services. These services will focus on key applications such as films (PPF), specialty cables, consumer electronics, footwear, and other extrusion and injection applications.

Construction is set to begin in late 2024, with the facility expected to become operational in 2025. The center will be equipped with advanced tools to meet complex market needs. It will also tap into local resources and networks to streamline talent and management.

“Establishing this new application development center in Guangzhou is a strategically important move for us to jointly with our customers leverage on the vibrant Asia-Pacific and especially the Chinese market. The center will also contribute to developing more sustainable TPU solutions, underscoring our dedication to innovation that benefits our esteemed customers and partners,” said Dr. Andrea Maier-Richter, EVP and global head of TPU at Covestro. “Together with the ongoing investment in our largest global TPU production site in Zhuhai, we will soon run two powerful engines in two major cities. This highlights our company’s ongoing commitment to growth and its commitment to the innovative capabilities of TPU in particular.”

With the existing regional R&D center in Changhua, the ongoing TPU plant construction in Zhuhai, and the upcoming AD center in Guangzhou, Covestro expects to create stronger synergies across these sites.

Strengthening Presence in APAC TPU Industry

“The new application development center in Guangzhou will play an instrumental role in engaging with major TPU industry clusters across China and APAC, particularly in consumer electronics and specialty extrusion applications,” said Kevin Ho, head of Sales & Market Development for TPU in APAC at Covestro. “We are not only close to these industry clusters, we are also at the forefront of listening to our customers, partners and the industry value chain. By bolstering our AD capacities, we ever better can sense and meet the nuances and changes and navigate our solutions and services with velocity, agility and customer centricity.”

Covestro is committed to offering sustainable and circular solutions that align with its long-term goals. The Desmopan® CQ TPU portfolio is a great example, utilizing alternative raw materials such as feedstocks from waste or biomass, attributed via mass balancing. The company also aims to be fully circular and achieve climate-neutral operations by 2035, relying entirely on renewable energy by that time. This lowers the carbon footprint of products like TPU even further. This dedication of the company is also reflected in the investments in its new TPU properties, where such developments shall be driven further.

Source: https://omnexus.specialchem.com/