Giants Invest in Greater Bay Area: Covestro's Zhuhai TPU Base Starts Production, Aiming for Largest Global Production Capacity

Covestro officially announced today, as learned from Special Plastic Vision on January 22nd, that the first phase of its new thermoplastic polyurethane (TPU) production base in Zhuhai, Guangdong, has successfully commenced operations. This strategic project is not only a key step for Covestro to deepen its presence in the Asia-Pacific market and implement its localization strategy, but also will reshape the global TPU industry landscape and inject strong momentum into the industrial chain upgrade of the Guangdong-Hong Kong-Macao Greater Bay Area and the entire Asia-Pacific region.

Image source: Covestro

Strategic Move: 30,000-ton capacity commissioned to precisely meet diverse demands across the Asia-Pacific region.

As a significant milestone in Covestro's strategic layout in China, the construction plan for the Zhuhai TPU base demonstrates its long-term strategic vision. The project officially announced its investment plan in 2023, with an initial investment of tens of millions of euros. Upon completion of the first phase, the annual production capacity will reach 30,000 tons, precisely meeting the growing demand for high-performance TPU materials in core industries such as IT electronics, automotive manufacturing, and footwear. The base covers a total area of 45,000 square meters and is planned for construction in three phases. Upon full completion in the 2030s, the annual production capacity is expected to surge to 120,000 tons, making it Covestro's largest TPU production facility globally and further solidifying its leading position in the global TPU market.

Image: Covestro TPU Production Base in Zhuhai (Source: Adsale Plastics Network)

Deepening Presence in the Greater Bay Area: A Dual-Hub Pattern Takes Shape, Building a Collaborative Ecosystem of "Production + R&D + Application"

Covestro's decision to establish a presence in Zhuhai and take root in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) reflects its profound insight into the regional industrial ecosystem. Holly Lei, President of Covestro China, emphasized that through this investment, Covestro is further focusing on Guangdong and the GBA, transforming the region into another strategic business hub in China alongside Shanghai. This move aligns closely with China's high-quality development and sustainability agendas. Leveraging the GBA's robust industrial clusters, convenient logistics networks, and abundant market resources, the Zhuhai site enables close proximity to downstream customers. This significantly enhances service response speeds and the delivery efficiency of customized solutions, providing more effective localized support for customers across the entire Asia-Pacific region.

In terms of industrial coordinated layout, the Zhuhai base is not an isolated production node but has built a complete ecosystem of "production + R&D + application." Covestro has established a TPU Asia Pacific R&D Center in Changhua and a new TPU Application Development Center in Guangzhou, forming a strong regional synergy among the three locations. Dr. Andrea Maier-Richter, Global Head of Covestro's Thermoplastic Polyurethanes business, stated that this regional layout, integrating production, basic research, and customer-oriented application development, can better drive innovation and precisely meet the specific needs of industries such as automotive, consumer electronics, and footwear in the South China and even wider Asia Pacific markets by providing customized solutions.

Green Innovation: CQ Series Breaks the Mold, Leading Industrial Sustainable Transformation with Circular Materials

Green sustainability is at the core of Covestro's global strategy, and the Zhuhai site fully embodies this development philosophy. The site not only boasts advanced environmentally friendly production processes but also has the capability to produce "CQ (Circular Intelligence) Series" TPU products. Covestro materials with the CQ label contain at least 25% alternative non-fossil raw materials, helping customers reduce the carbon footprint of their end products through innovative technology. This is of great significance to industries that highly prioritize sustainable development, such as consumer electronics. This practice is also highly consistent with Covestro's clear carbon reduction roadmap – aiming for net-zero emissions for Scope 1 and Scope 2 by 2035, and achieving net-zero emissions for Scope 3 by 2050, continuously promoting the development of a circular economy.

Global Blueprint: Three-Phase Plan Aims for 120,000 Tons, Creating the World's Largest TPU Production Base

As a benchmark in high-quality polymers and components globally, Covestro's strength provides solid support for the successful operation of its Zhuhai site. As of the end of 2024, Covestro has 46 production sites worldwide, approximately 17,500 full-time employees, and sales of 14.2 billion euros in fiscal year 2024. Its business covers several core areas, including transportation, construction, electronics and electrical engineering, sports and leisure, and healthcare. Its TPU products, with their excellent abrasion resistance, elasticity, temperature resistance, and processing flexibility, hold a dominant position in numerous applications such as sports shoe midsoles, mobile phone cases, automotive paint protection films, and medical catheters, and fully comply with international standards such as REACH and RoHS.

Source: Covestro

Covestro Chief Commercial Officer Monique Buch sees the start of production as an important milestone in the Group's growth strategy: "The start-up of the Zhuhai site demonstrates our commitment to meeting the evolving needs of our customers in Asia Pacific and strengthens our position in a high-growth market."

Giants Empowering: Technology and Capacity Dual-Engine Driving, Reshaping the Asia-Pacific Petrochemical Industry Landscape

Industry analysts point out that the commissioning of the Zhuhai base will effectively alleviate the supply pressure of high-performance TPU in the Asia-Pacific region. Its advanced production technology, green development concept, and comprehensive industrial synergy model will set a benchmark for domestic plastic and chemical enterprises and promote the entire industrial chain to upgrade towards a more efficient and sustainable direction.

From its integrated production site in Shanghai to the world's largest TPU facility in Zhuhai, Covestro continues to deepen its strategic presence in China. At a critical juncture in the restructuring of the global plastics and chemicals industry, this foreign giant’s steadfast investment is not only a profound recognition of the Chinese market's potential, but also a catalyst for continuous momentum in the technological innovation and green transformation of China's plastics industry. As Phase II and Phase III progress, the full release of its 120,000-ton capacity will further empower the Asia-Pacific supply chain, composing a new chapter for industrial development under the vision of "Crafting the Uncertain, Creating the Sustainable."

(The above content is a compilation from Covestro, Chinaplas, etc.)