Covestro has started production at its new thermoplastic polyurethanes (TPU) manufacturing facility in Zhuhai, a coastal city in South China. In its first phase, the site—backed by a mid-double-digit million-euro investment—will deliver around 30,000 tonnes of TPU per year, addressing rising demand from industries such as IT, automotive, and footwear. With this commissioning, Covestro significantly strengthens its regional manufacturing footprint while improving supply proximity to key customers across Asia Pacific.
Phased Development Supports Long-Term Growth Strategy
Originally announced in 2023, the greenfield Zhuhai investment represents a major milestone in Covestro’s region-for-region strategy and its continued expansion of the Solutions & Specialties business. The site will be developed in three phases across a 45,000-square-metre area. Upon completion of the final phase—expected in the 2030s—total production capacity is projected to reach 120,000 tonnes per year, making Zhuhai Covestro’s largest TPU production site globally.
Strengthening Customer Proximity in Asia Pacific
Monique Buch, Chief Commercial Officer of Covestro, highlighted the strategic importance of the investment. “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 customers across Asia Pacific while strengthening our position in high-growth markets. The facility enables us to deliver innovative TPU solutions closer to our customers, enhancing both service capabilities and responsiveness.”
Leveraging Regional R&D and Application Development Synergies
To further strengthen its regional presence, Covestro supports the Zhuhai production site with a TPU R&D Center in Changhua and a new TPU Application Development (AD) Center in nearby Guangzhou. Together, these facilities integrate production, research, and customer-focused innovation. This closely connected ecosystem creates strong regional synergies, enabling Covestro to combine technical expertise with tailored solutions for local and regional customers.
Integrated Setup Drives Innovation Across Industries
According to Dr. Andrea Maier-Richter, Head of TPU at Covestro, the integrated regional setup significantly enhances Covestro’s competitive positioning. “The Zhuhai site, together with our nearby R&D and AD capacities, is state-of-the-art. It significantly expands our global TPU production network and reinforces our strong market position in the region. By combining production, fundamental research, and customer-focused application development, we are well positioned to drive innovation and deliver tailored solutions for industries ranging from automotive and consumer electronics to footwear.”
Reinforcing Long-Term Commitment to China and Sustainability
The investment also reflects Covestro’s long-term commitment to China’s high-quality development and sustainability agenda. According to Holly Lei, President of Covestro China, the Zhuhai site strengthens the company’s strategic footprint in the country. “The Zhuhai site underscores Covestro’s long-term commitment to China and aligns with the country’s development and sustainability goals. Alongside Shanghai, Guangdong—particularly the Greater Bay Area—has become a strategic hub for Covestro, enabling us to deliver innovative solutions locally while supporting customers across Asia.”
Supporting Low-Carbon Solutions with “CQ”-Labelled TPU
Importantly, the Zhuhai facility is capable of producing TPU under Covestro’s “CQ” label. Materials carrying this designation contain at least 25 percent alternative, non-fossil raw materials, helping customers reduce the carbon footprint of their final products. This capability is especially relevant for sustainability-driven sectors such as electronics, where demand for lower-carbon and circular material solutions continues to accelerate.
