Shanghai – Covestro announced in November it is to build a new plant for thermoplastic polyurethane (TPU) at its verbund site in Shanghai, slated to come on stream by 2023.
Investment for the new PU elastomers plant will be in double-digit millions of euro, the company told UTECH-polyurethane.com.
The facilities will significantly enhance Covestro’s capacity to serve customers in China and Asia Pacific, it said.
‘This investment represents a further vote of our confidence and commitment to the China market,’ said Holly Lei, president of Covestro China at the press conference. ‘We believe our elastomers and other high-tech materials solutions can contribute to the nation’s sustainable development and carbon neutral ambitions.’
According to Covestro, the market for polyurethane elastomers in China and in Asia Pacific is growing above the GDP, and is usually growing above the industry’s growth where it is used, such as solar power, wind power and materials handling.
The company also formed a strategic partnership with China’s Zhongtian Technology Marine Systems to promote the applications of elastomers, including those made with alternative materials, in offshore wind power, said the announcement.
In addition, Covestro signed contract on the same day to supply MDI with bio-based feedstock attributed via mass balance to polyurethane heavyweight Huafon. This is Covestro’s first commercial order on this material in Asia Pacific.
Covestro to build Shanghai elastomer plant; starts supplying greener MDI to Huafon
