Covestro has commenced production at its new thermoplastic polyurethanes (TPU) manufacturing site in Zhuhai, China.

Covestro’s new TPU site in Zhuhai, in southern China.

(From left) Edwin Wu, Head of TPU Sales and Market Development South Korea, Southeast Asia and Greater China, Stephan Ehlers, Head of Operations TPU, Andrea Maier-Richter Global Head of TPU, Monique Buch, Chief Commercial Officer, Holly Lei, President of Covestro China, and Kevin Ho, Head of TPU Sales and Market Development APAC, at the opening celebration of the new plant.

The investment in this entirely new site, originally announced in 2023, marks a significant milestone in Covestro’s region-for-region strategy and its commitment to growth in its Solutions & Specialties business.

“The inauguration of our Zhuhai site represents a pivotal moment in Covestro’s growth strategy. This investment demonstrates our commitment to meeting the evolving needs of our customers across Asia Pacific while strengthening our position in high-growth markets,” said Monique Buch, Chief Commercial Officer of Covestro.

Covestro’s largest TPU production facility in the world

The Zhuhai site will be developed in three phases across a 45,000-square-meter area, with maximum production capacity estimated to reach 120,000 tons a year upon completion of the final phase, expected in the 2030s. This will then make it the company’s largest TPU production facility globally.

The first phase, representing a mid-double-digit million-euro investment, will produce approximately 30,000 tons of TPU annually, meeting growing demand for TPU material across industries including IT, automotive and footwear.

This Zhuhai site is capable of producing TPU with the label “CQ”. Covestro materials with this designation contain at least 25% alternative, non-fossil raw materials, supporting customers in reducing their carbon footprint in final products, especially important in sectors such as electronics where sustainability has become a global trend.

Regional synergies with nearby R&D and application development capacities

The Zhuhai site will be strategically supported by a regional TPU R&D Center in Changhua and a new TPU application development (AD) center in nearby Guangzhou, which integrate technical acumen with innovative solutions and tailored services.

Together, these facilities are expected to generate powerful regional synergies through collaborative and complementary strengths, positioning Covestro optimally to serve its customers throughout the region.