Covestro Starts Work on New Polyurethane Plants

German materials manufacturer Covestro announced Friday that construction has commenced on two new production facilities at the Covestro Integrated Site Shanghai in Shanghai, China that will increase its capacity for polyurethane dispersions (PUDs) and elastomers.

“These projects will contribute to the high-quality and sustainable development in China and beyond,” Holly Lei, president of Covestro China, said in a company release. “They will also add to the scale and strength of our Shanghai site, which will be playing a key role in the quest of Covestro to becoming operational climate neutral by 2035.”

The new facility for PUDs and a line for polyester resins are slated to reach completion in 2024. PUDs are used in coatings and adhesives for automotive, construction, furniture, footwear, and packaging applications.

“With this new investment, we will be even better positioned to address the rising demand for more environmentally compatible coatings and adhesives across the globe,” said Zhong Xiabin, senior vice president of the Coatings and Adhesives segment of Covestro in the Asia Pacific region, in a statement. “As one of the global leaders in this segment, we will continue to tap the trend where our customers turn to more sustainable waterborne systems with equally good properties to replace solvent-based products.”

Covestro is investing “a mid-double-digit million euro amount” in the project.