Achieving long-term profitable growth is the foremost goal of Covestro’s corporate strategy. The company wants to tap into the considerable growth potential expected in the future in the industries and segments in which it is active. At the same time, it is committed to sustainability and innovation, working continuously to improve its production and cost structures.
Exploiting growth opportunities
Independent experts project that the segments in the polymer industry in which Covestro is active will continue to grow in the years ahead by as much as four percent per year through 2020. Macro trends such as climate change, urbanization and increasing mobility, are seen as the main drivers of growth. Through its products and solutions, Covestro aims to help master these challenges in line with its vision: “To make the world a brighter place.”
Focus on sustainability
Sustainability is a central pillar of the Covestro strategy. Through its business activities, the company wants not only to create value, but also to help protect the environment and achieve progress in society. This holistic approach defines operations along the entire value chain, from procurement, production, logistics and sales to the use of Covestro products and their disposal and recycling. Its highest priorities are the safety of its processes and the health and well-being of its employees.
Specifically, Covestro has defined five long-term goals: It wants to align its research and development projects with the UN Sustainable Development Goals (SDG). In procurement, it wants to anchor its own sustainability requirements among all suppliers. In production, the objective is to continue to significantly reduce specific greenhouse gas emissions. With its products, the company hopes specifically to improve the lives of people in under-served markets. Furthermore, Covestro wants to exploit the key element carbon, the basis of all its products, as intelligently as possible, so as to draw the greatest benefit from it.
Innovation as a core element
Through focused research and development, Covestro seeks to maintain and expand its position in the global competitive arena. Its activities are aimed at enhancing the performance of existing products and developing related markets with new products. The company further strives to develop solutions for new applications and improve production and business processes. These objectives are rooted in an expanded understanding of innovation that goes beyond classical research and development to include identifying, promoting and using potentials throughout the organization and in all employees.
To improve profitability on a sustainable basis, Covestro works continuously to increase the efficiency of its sites, plants and equipment.To this end, Covestro regularly reviews the structure of its production base. For example, a resolution was made in 2016 to convert a plant for the flexible foam precursor TDI, which had already been shut down at the Brunsbüttel site in Germany, for the production of MDI, thus roughly doubling capacity at the site for this rigid foam component. Better utilization of existing capacities is another declared objective, because the better a plant is utilized, the more profitable the company can operate. In doing so, the company applies very high standards with regard to safety, reliability and environmental compatibility.
Covestro works continuously to improve efficiency and effectiveness throughout the company and thus ensure competitive cost structures. Its goal is to rank among the cost leaders in its industry sector. It aims to achieve this, for example, by further optimizing service functions and the IT infrastructure and by streamlining the sales organization at the segment level.