Daily Newsletter

28 September 2023

Daily Newsletter

28 September 2023

Covestro breaks ground on new TPU production facility in Zhuhai

The plant is being strategically established in Guangdong, which is seen as a major IT and consumer electronics hub.

Germany manufacturing company Covestro has commenced construction on its new thermoplastic polyurethanes (TPU) production facility in Zhuhai, China.

The construction project will be developed in three phases.

The first phase’s mechanical completion is scheduled for 2025 and is estimated to have a manufacturing capacity of 30,000 tons (t) annually.

The 45,000m² facility will have a production capacity of 120,000t of TPU annually.

This final phase is expected to be completed in 2033.

TPU is an adaptable plastic material used in sports shoes, IT devices, wind turbine blade protection and other applications.

Covestro Asia-Pacific TPU head Lisa Ketelsen stated: “As Guangdong province is a major hub for the IT, consumer electronics, footwear and other industries, we believe that locating our production in close proximity enables us to collaborate optimally.

“To underline that, an innovation centre will be part of the next phase of our investment, enabling our researchers to design customised material formulas and do formula adjustments to meet customer demands within very short cycles.”

The renewable energy-powered plant will utilise advanced manufacturing technologies.

Covestro China president Holly Lei added: “Together with recent investments in new plants for elastomers, polyurethane dispersions and a production line for the mechanical recycling of polycarbonates in our site on the outskirts of Shanghai, this new site for TPU in southern China shall capture the robust growth of the core industries served by our Solutions & Specialties business entities in China, the region and worldwide.”

South-East Asia Construction Market Dynamics

Per GlobalData analysis, the South-East Asia construction industry in 2023 is dominated by Indonesia, though the country will see a slowdown compared to 2022 due to elevated building material prices, weak commercial property demand, high interest rates and a softening of external demand. The construction industry in the Philippines is estimated to register a AAGR of 7.2% between 2024 and 2027, supported by the government’s focus on the development of the country’s rail and road transport and energy infrastructure.

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