Covestro Opens China TPU Manufacturing Site

Covestro has commenced production at its new thermoplastic polyurethane (TPU) manufacturing site in Zhuhai, a coastal city in South China. The first phase, representing an investment in the mid-double-digit-million euros, will produce approximately 30,000 tons of TPU annually, meeting growing demand for this versatile material across industries including IT, automotive, and footwear.

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

Regional synergies with adjacent R&D

The Zhuhai site will be supported by a regional TPU R&D Center in Changhua, Taiwan, and a new TPU application development center in Guangzhou, which will 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 to optimally serve its customers throughout the region.

At the opening celebration of the new plant (from left to right): 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.

“The site, as well as the nearby R&D and AD capacities, are state-of-the-art. Our site in Zhuhai furthermore significantly expands our global TPU production network and reinforces our strong market position in TPU in the region,” said Dr. Andrea Maier-Richter, head of TPU at Covestro. “With our integrated regional setup combining production, fundamental research, and customer-focused application development, we’re well-positioned to drive innovation and deliver tailored solutions that meet the specific requirements of diverse industries located in south China, like automotive, consumer electronics, and footwear.”

Non-fossil-derived grades

The Zhuhai site is capable of producing TPU with the CQ label. 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.