Covestro is set to establish a new thermoplastic polyurethanes (TPU) application development (AD) center in Guangzhou, South China. This marks the company’s second major TPU investment in quick succession, following the announcement and construction of its largest TPU plant in Zhuhai last year.
The new AD center will focus on integrating technical expertise with innovative solutions, offering tailored services for key applications such as protective films (PPF), specialty cables, consumer electronics, footwear, and other extrusion and injection applications. Covestro aims to meet the growing demands in these sectors by providing advanced TPU solutions.
Construction of the AD center is expected to commence in late 2024, with operations starting in 2025. The facility will be equipped with cutting-edge technology to address complex market needs while utilizing local resources to streamline talent and management processes.
Dr. Andrea Maier-Richter, EVP and Global Head of TPU at Covestro, emphasized the strategic importance of this new center, stating, “This new application development center in Guangzhou will enhance our ability to collaborate with customers in the Asia-Pacific market, particularly in China. It will also help develop more sustainable TPU solutions, reflecting our commitment to innovation that benefits our customers and partners.”
Dr. Maier-Richter further highlighted the synergy between the upcoming AD center and the ongoing construction of Covestro’s largest TPU production site in Zhuhai. Together with the existing regional R&D center in Changhua, these facilities will drive strong regional collaboration, enhancing TPU innovation across the Asia-Pacific region.
Kevin Ho, Head of Sales and Market Development for TPU in APAC at Covestro, added, “Being located close to key industry clusters in China and APAC, particularly in consumer electronics and specialty extrusion, the Guangzhou center will allow us to better understand and address market demands with greater agility and customer focus.”
Covestro is also committed to sustainability and circularity. Its Desmopan® CQ TPU portfolio uses alternative raw materials, including feedstocks from waste or biomass, attributed through mass balancing. The company aims to achieve climate neutrality by 2035, using only renewable energy for its operations, thus reducing the carbon footprint of its TPU products.
This investment in Guangzhou reinforces Covestro’s long-term strategy to expand its TPU capabilities while promoting sustainable and innovative solutions across the industry.