Shanghai – Covestro has announced it is exiting the formulated polyether polyols business for the appliances industry in the markets of China, India and the ASEAN region – excluding Japan – by the end of 2022. The adjustment in portfolio is in response to changing customer preferences in the region.
Covestro is currently offering two-component polyurethane as a system solution that combines formulated polyether polyols (PPG) and isocyanates (MDI) to its customer base in the appliance sector in the regional market. The portfolio adjustment in Asia Pacific will not impact its business in Europe and North America.
Covestro reiterated that the appliance industry will continue to remain a key segment for its business in Asia Pacific, and it will continue to sell MDI to the appliance industry in China, India, and ASEAN.
In Asia Pacific specifically, Covestro will continue to focus on customer needs in the PU system applications in automobiles, wind blades, pultrusion and reefer containers where tailored solutions and system supply are still valued by customers.
Earlier this month China-based multinational home appliances company Midea Group launched a range of ‘low-carbon-footprint green refrigerators’, using materials from Covestro, at Covestro’s stand at the fifth China International Import Expo (CIIE). The refrigerators are insulated with what the companies describe as ‘more sustainable polyurethanes’.
The two models of Midea’s ‘odourless series’ refrigerators (BCD-439WFPZM and BCD-516WFGPZMA) use low-carbon-footprint MDI through a mass balance approach from Covestro, a transparent certified solution based on the third-party International Sustainability and Carbon Certification (ISCC) PLUS standard. Through the mass balance approach, raw materials from biomass or waste are blended with fossil materials and then mathematically attributed to the final products to achieve greenhouse gas reductions. Since mass-balanced products have the same performance as fossil-based products, customers do not need to change their existing production process or equipment.
Covestro made the Asia-Pacific debut of its mass-balanced MDI at last year’s CIIE.