The agreement marks a significant evolution in the two companies’ relationship – moving beyond traditional supply towards collaboration across the value chain, driven by a shared conviction that the future of mobility, energy and intelligent systems demands deep co-innovation. For Covestro, the partnership directly supports its “Sustainable Future” strategy by advancing innovations that enable circular solutions and drive growth in industries where material performance is becoming an increasingly important source of competitive advantage.

“At Covestro, we believe in the power of material science and collaboration to drive industry transformation – and this partnership with BYD is a strong example of that," said Lily Wang, President of Engineering Plastics at Covestro. "BYD's expanding portfolio represents some of the most exciting and demanding material challenges of our time, and that is exactly where Covestro’s depth of expertise becomes most valuable. We look forward to translating that expertise into tangible solutions together with BYD.”

“Covestro has proven itself as a trusted material innovation partner, and this agreement reflects our confidence in taking that relationship to a new level,” said Head of Materials, BYD. “As we continue to push the boundaries of what is possible in future mobility and beyond, we look forward to co-innovating with Covestro to develop the advanced material solutions that will redefine future industries and accelerate our global ambitions.”

Material expertise complementing BYD's cutting-edge applications

Under the MoU, the two companies will deepen their collaboration across new energy vehicles, power batteries, public transportation, energy storage, and new technology applications. The partnership will include joint innovation initiatives, technology co-development and strategic investment opportunities.

Covestro will provide dedicated R&D resources to co-develop new material technologies, volume supply security, early access to new material innovations and customized technical support. BYD in turn commits to proactively engaging Covestro in new projects and technology roadmaps across its entire business portfolio.

Covestro’s world-class material expertise in polycarbonate and polyurethane solutions, backed by decades of experience in automotive and electronics application, complements BYD’s key application areas:

• New energy vehicles: Proven material solutions in lighting, premium interior and exterior, and intelligent electronic components, delivering both aesthetic and functional value for smart mobility.
• Power batteries & energy storage: Lightweight, high-performance materials that balance safety, thermal management, and cost efficiency across EV and residential applications.
• Next-generation technologies: High-performance polymer solutions engineered for extreme demands – combining lightweight construction, structural integrity, thermal and electrical management, and durability to enable complex technology platforms of the future. 

Building a more sustainable industrial future

Beyond product co-development, the two companies are committed to advancing low-carbon and circular material solutions that reduce the environmental footprint of next-generation mobility, energy and intelligent systems. Covestro’s CQ (Circular Intelligence) labeled materials, made with at least 25 percent alternative raw materials, form a key part of this commitment.

With the acquisition, Covestro expands its production footprint for HDI derivatives and reaffirms its commitment in two important regions, while strengthening its ability to serve customers in the coatings and adhesives industry with greater flexibility and reliability.

HDI derivatives are essential building blocks for high-performance polyurethane coatings, adhesives and sealants. They are used in a broad range of applications, including automotive coatings, protective coatings for infrastructure, marine coatings, wood furniture, electronics and other demanding industrial applications.

“By adding these sites in Thailand and the US, we are strengthening our regional production capabilities and improving our ability to supply customers from locations close to them,” said Thomas Roemer, Head of the Business Entity Coatings and Adhesives at Covestro. “Reliable supply, regional availability and technical expertise are critical for our customers, especially in a challenging market environment. This acquisition helps us deliver even better on those needs.”

The two sites complement Covestro’s existing production network for HDI derivatives in major regions including Europe, Asia and North America. The additional capacities will further enhance Covestro’s ability to respond to customer demand and support long-term growth in high-performance and more sustainable coatings and adhesives applications.

“Strong customer relationships are built on trust, reliability and the ability to deliver value over time,” said Monique Buch, Chief Commercial Officer of Covestro. “This acquisition strengthens our position in a business where customers count on us for consistent quality, regional supply and application expertise.”

The acquisition follows Covestro’s earlier acquisition of the Resins & Functional Materials business from DSM and continued investments in organic growth, underlining the company’s commitment to the coatings and adhesives industry.

ISCC PLUS-certified chlorine from Covestro is produced by using electricity from renewable sources, supporting a more sustainable production process and contributing to lower greenhouse gas emissions.

As of January 2026, the entire CR production of ARLANXEO is based on ISCC PLUS-certified chlorine, marking an important milestone in the company’s sustainability journey and its commitment to a more sustainable value chain. 
This transition is resulting in an average reduction in global warming potential (GWP) of approximately 20% compared to 2025 levels¹, depending on the specific product grade.

“Integrating ISCC PLUS-certified materials into our production is a key step in reducing the environmental footprint of our CR rubber products,” said Niels van der Aar, Head of Sustainability at ARLANXEO. “It underlines our commitment to supporting customers with more sustainable material solutions while advancing transparency along the value chain by supplying corresponding product environmental footprint data for ARLANXEO’s entire CR product portfolio.” 
As a key chemical supplier to ARLANXEO, Covestro plays a crucial role in enabling this transition by supporting the availability of ISCC PLUS-certified chlorine.

“At Covestro, we support our customers in reducing emissions along the value chain by supplying more sustainable basic chemical raw materials from our multiple ISCC PLUS-certified production sites,” said Moritz Winterstein, Head of Trading Cluster Basic Chemicals EMEA at Covestro. “Our collaboration with ARLANXEO demonstrates how certified raw materials and renewable electricity can contribute to lowering the product environmental footprint of downstream applications and support customers in achieving their sustainability targets.”

The introduction of ISCC PLUS-certified feedstock, like ISCC PLUS Chlorine, strengthens the position of ARLANXEO as a leading supplier of more sustainable elastomer solutions, particularly for industries with ambitious climate targets, such as automotive, construction, industrial and adhesive applications.

In addition, ARLANXEO can also offer Baypren® Eco grades combining ISCC PLUS-certified chlorine and ISCC PLUS-certified butadiene, enabling further reductions¹ in environmental impact and supporting customers in achieving their sustainability targets without any compromise in performance.

_{¹ Relative changes in Global Warming Potential – GWP100 incl. biogenic [kg CO₂e] 
Example of the relative change of the Global Warming Potential (GWP100 incl. biogenic [kg CO₂e] for Baypren^® 116 M45 as from January 2026. In the graph also the Baypren^® Eco 116 M45 is added as Eco option. A full Product Environmental Footprint report is available upon request.}

The successful implementation exemplifies how “The Material Effect” elevates materials into solutions that matter. This was achieved through an innovative partnership between Toyota Motor Corporation, Toyota Motor Kyushu, INC., parts supplier Kojima Industries Corporation, and Covestro. Together, the four companies conducted comprehensive testing and evaluation to ensure the recycled material met all performance requirements without compromising quality standards.

Integrating high levels of post-consumer recycled content into visible premium interior parts has typically been a high technical hurdle - making use in such areas difficult with many resins - yet the Bayblend® resin used in the LEXUS ES demonstrates that this barrier can be overcome. This marks one of the first integrations of 35% post-consumer mechanically recycled content in visible components within a premium automotive segment.

Meeting Performance Standards 

By fusing premium materials with specialized expertise, Bayblend® T85X R35 CQ delivers on all specifications for multiple Lexus ES interior parts while incorporating post-consumer recycled content. The material delivers essential performance characteristics including durability, surface quality, dimensional stability, and processability while integrating seamlessly into existing manufacturing processes.

"This collaboration demonstrates that more sustainable materials can meet the required standards of premium automotive applications," said Fumihiro Togashi, Global Strategic Account Manager, Toyota Group at Covestro. “By working closely with Kojima Industries Corporation, Toyota Motor Corporation, and Toyota Motor Kyushu, INC. throughout the development process, we've proven that environmental responsibility and product excellence can go hand in hand.”

The material's versatility extends beyond pre-colored applications to paintable components, enabling use in both visible interior areas and exterior parts. Covestro ensures consistent quality and supply reliability by utilizing one of the most dependable post-consumer recycled sources in the plastics industry. The company's global production footprint further enhances cross-regional supply stability and provides capacity to support anticipated volume increases as more sustainable automotive materials gain broader market adoption.

Advancing Circular Economy Goals

This adoption aligns with the four companies' sustainability strategies. Covestro positions the circular economy as a strategic pillar and continues expanding related product families. Toyota Group leads industry initiatives in environmental stewardship and resource circularity. In parallel, Kojima Industries Corporation and Kojima Group drive sustainability across manufacturing and supply chains, supporting circular material use and responsible sourcing.

The partially recycled plastic solution supports fulfilling expected quotas related to the ELV Regulation, demonstrating how more sustainable materials can simultaneously meet performance and regulatory requirements in the automotive industry.

Looking Ahead

Covestro continues expanding its circular economy solutions through “The Material Effect” approach, including the recently launched "RV line”, part of the post-consumer recycled R series – featuring recycled end-of-life vehicle materials such as headlamps, with third-party certification. These developments address critical automotive industry challenges amid tightening environmental pressures and regulatory requirements.

The innovations will contribute to EU ELV recycling targets toward 2032. Through its global production and supply network, Covestro supports decarbonization and resource circularity in mobility while enabling automotive manufacturers to meet evolving regulations without compromising product quality - truly elevating materials into solutions that matter.

Across modern football, materials play a role in helping enable speed, control, comfort, durability and reliable performance, from equipment and apparel to infrastructure and digital connectivity.

Covestro is highlighting this “material effect” behind football: the often unseen contribution of material science to the way the sport is played, experienced and connected around the world.

The athletes enabled by materials

Modern football has become faster, more precise and more connected. Players sprint more, press harder, change direction faster and perform under intense physical and mental pressure. Behind this evolution are better training methods and data analytics, but also materials that help make high performance more reliable.

The football itself is a good example. Modern balls use advanced materials, carefully engineered surfaces and precise construction methods to support consistent weight, shape, rebound and flight behavior, even under demanding weather conditions. Compared with traditional leather balls, today’s footballs are designed for greater reliability and more predictable performance.

Footwear has also changed fundamentally. Modern football boots combine lightweight uppers, flexible structures and high-performance sole plates to support grip, acceleration, agility and ball control. The contact between player, pitch and ball has become a highly engineered interface.

Sportswear plays its part as well. Lightweight, breathable and durable textiles can help manage moisture and comfort during high-intensity performance. Covestro’s INSQIN^® waterborne polyurethane technology enables high-performance textile coatings that can provide softness, water resistance and long-lasting performance while supporting more sustainable manufacturing approaches.

Materials beyond the pitch

The material effect extends beyond players and equipment. Stadiums, training facilities and broadcast infrastructure also depend on advanced materials.

Lightweight and durable polycarbonate solutions have been used in large-scale roofing applications. They can help create weather-resistant structures that protect spectators while reducing weight and maintenance requirements.

At the same time, football is becoming increasingly digital. From connected match technologies and live analytics to broadcast systems, streaming platforms and fan experiences, every match depends on the reliable flow of data. Advanced polymer materials help protect cables, connectors and electronic components and support the infrastructure that brings the game to fans around the world.

As sport becomes more connected, the infrastructure behind it becomes more demanding. Data centers, communication networks and electronic systems require materials that can support reliability, protection and performance at scale.

Innovation is a team sport

The evolution of football shows how performance is rarely the result of a single factor. It comes from the interaction of talent, preparation, technology and the right materials.

The same applies in business. As customer challenges become more complex and markets move faster, innovation increasingly depends on collaboration across disciplines, industries and value chains.

“Innovation today needs to be fast, focused and collaborative,” said Monique Buch, Chief Commercial Officer at Covestro. “Co-creation with customers works much like collaboration in a football team: different strengths come together around one shared goal, focusing their preparation to secure the win, and trust and speed making the difference.”

From the pitch to the stadium and from equipment to digital infrastructure, football shows how advanced materials can help shape performance where it matters most.

The Asia-Pacific TPU market, particularly in South China, continues to see strong demand from fast-growing sectors such as consumer electronics, automotive and specialty films. The Guangzhou AD Center strengthens the company’s ability to translate this demand into tailored material solutions through closer technical collaboration with customers.

“This new Application Development Center represents a strategic cornerstone in our global TPU strategy to grow in high-value and emerging segments in Asia-Pacific,” said Dr. Andrea Maier-Richter, Global Head of TPU at Covestro. “We will explore, pilot and upscale new application fields for TPU in robotics, healthcare and mobility solutions together with our customers – in close collaboration and at the heart of the market.”

Capabilities designed for speed and precision

The center is designed to help customers move faster. Its processing simulation lines replicate real production conditions in extrusion and injection molding, enabling rapid formulation adjustments and material modification. These capabilities help reduce trial cycles, shorten time-to-market, and deliver solutions tailored to specific application needs.

“Asia is home to some of the world’s most dynamic and fast-moving industries, and our customers here expect partners who can keep pace with them. This center is our answer to that, bringing together our cross-business capabilities under one roof right here in South China,” said Holly Lei, President Covestro China. “It also reflects our deep commitment to this market and our belief that true innovation happens when you are close to your customers and the industry.”

Unlocking value through cross-business synergies

A distinctive feature of the Guangzhou AD Center is its multi-business setup, with Engineering Plastics (EP) and Specialty Films (SF) teams co-located on the same site, enabling close collaboration and faster integration of capabilities. The EP unit brings compounding expertise and color competence, supporting in-house color matching for applications such as consumer electronics, footwear and paint protection films (PPF). The SF unit enables pilot production and finished product commissioning for high-performance films and other extrusion-based applications. This integrated approach brings together capabilities across business entities, creating added value for customers.

“Innovation at Covestro is led by our markets and always strives to combine our global strengths across the business entities for our customers,” said Dr. Christian Haessler, Head of Global Innovation TPU at Covestro. “TPU is a material for a more sustainable future, and the Guangzhou AD Center will enable the development of highly versatile and recyclable TPU material solutions in one of the most dynamic innovation ecosystems worldwide.”

The Guangzhou AD Center is now open for customer and partner collaboration across Asia-Pacific, offering end-to-end customer support from initial material consultation to pilot production and troubleshooting.

The initiative was launched in May 2024 and successfully certified by the end of 2025. Covestro Thailand’s Managing Director formally received the certification on April 1, 2026. Covestro achieved verification across all three emission scopes: Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (indirect emissions across the value chain). Notably, Scope 3 remains voluntary, and only a limited number of organizations in Thailand have been able to comprehensively collect and analyze carbon data from upstream to downstream operations.

This project marks a significant milestone in the company’s sustainability journey. The path to success involved overcoming several challenges, including establishing carbon footprint data collection for the first time, where existing data formats and reports were not initially designed to support greenhouse gas calculations. Additionally, Scope 3 assessment presented considerable complexity, requiring extensive collaboration with external stakeholders and coordination across multiple internal departments.

Ms. Nisa Suttipornphaisankula, Managing Director of Covestro (Thailand) Co., Ltd., stated: “Developing our organizational carbon footprint is not merely about compliance—it is about building a critical foundation of data and management systems for the future of our business. We recognize the importance of starting today to prepare for evolving expectations from customers, partners, and global environmental regulations.” “Our ability to cover Scope 1 and 2, and the more complex Scope 3, which requires collaboration across the value chain, along with achieving both CFO and ISO 14064-1 certifications, reflects a robust system aligned with both national and international standards. We see this as a vital foundation for our future business operations”, she added.

Looking ahead, the company has outlined a roadmap toward its “Road to Net Zero” goal for Thailand. In 2026, the plan is to implement Phase 2 of its solar rooftop project, alongside ongoing energy conservation initiatives and systematic greenhouse gas management. The company is also aligning its emission reduction strategies with Covestro’s global targets and aims to maintain continuous CFO certification with TGO in the coming years to further strengthen sustainable carbon management practices.

In addition, this year, Covestro’s Map Ta Phut production site in Rayong was recognized by the Industrial Estate Authority of Thailand (IEAT) as a “Sustainability Network Factory” under the “Sustainability Network Factory Enhancement Project,” highlighting the company’s role in driving sustainability within the industrial sector.

“The circular economy must prove its value in markets. The global launch of this new suitcase shows recycled materials can meet expectations for both performance and design,” said Lily Wang, President of Engineering Plastics at Covestro. “We are pleased to deepen our long-standing collaboration with NINETYGO and to help more Chinese brands differentiate globally through sustainability.”

“NINETYGO is committed to advancing sustainable travel worldwide. Today’s consumers expect not only quality and design, but also environmental responsibility,” said Alisa Shang, CEO of Runmi Technology, which owns NINETYGO. “Together with Covestro, we are bringing to market a new generation of PCR-based luggage that combines performance with sustainability, while strengthening our global competitiveness.” 

Combining sustainability and durability

The suitcase shell is made from Makrolon® R90 with up to 90 percent recycled content, sourced from end-of-life water barrels. Since 2020, Covestro has collaborated with partners to recycle around 1 million 19-liter polycarbonate barrels annually, converting them into high-quality PCR material for use in consumer goods, electronics and home appliances.

For example, a 20-inch suitcase from the Coffee Journey Series reduces the shell carbon footprint by over 67 percent[1] compared to the previous version, thanks to a higher content of circular materials.

In terms of performance, the recycled material maintains strong impact resistance at room temperature and in extreme conditions down to -20°C. It also offers excellent color versatility, with this new Coffee Journey Series available in three colors: Flat White, Americano and Latte, reflecting the material’s natural aesthetic.

Enabling global reach through sustainability

NINETYGO first partnered with Covestro in 2021 to launch a limited-edition suitcase using PCR polycarbonate. The global debut of the Coffee Journey Series marks a deepening collaboration between the two companies and underscores the accelerating trend of sustainable material adoption in consumer products.

Environmental requirements in international markets have tightened in recent years. Regulations such as the EU’s Ecodesign for Sustainable Products Regulation (ESPR) and restrictions on per- and polyfluoroalkyl substances (PFAS) are raising the bar for market entry. The PCR polycarbonate used in the latest NINETYGO series contains non intentionally added PFAS (NIA-PFAS) and aligns with proposed EU PFAS restrictions. With strict raw material control and standardized production, it delivers performance comparable to virgin materials and is certified by third parties for PCR content.

Visit Covestro at CHINAPLAS 2026, Hall 7.2, Booth C38, National Exhibition and Convention Center (Shanghai), to discover how the Material Effect is shaping the future.

[1] Based on NINETYGO internal calculations.

Under the agreements, signed during CHINAPLAS 2026, Covestro and Hikrobot will co-develop solutions for parcel sorting, factory automation and related applications, with Hikrobot prioritizing Covestro’s material solutions and receiving full R&D support. The collaboration with Carthane will focus on commercializing advanced materials for critical robot components such as feet.

“Covestro is evolving from a material supplier to a strategic enabler across the robotics value chain,” said Lily Wang, President of Engineering Plastics at Covestro. “At a critical stage of industrial-scale deployment, we are deepening collaboration with industry pioneers to advance next-generation materials, accelerate scalable production, and embed sustainability from the start — supporting the robotics industry on a greener path.”

Partnering with Hikrobot for smart logistics

Hikrobot is a provider of machine vision, mobile robots and articulated robot products and solutions, focusing on industrial IoT, smart logistics and intelligent manufacturing. Covestro and Hikrobot are joining forces to develop products and system solutions for smart logistics and intelligent manufacturing.

“We are delighted to enter this strategic partnership with Covestro in high-performance materials and intelligent logistics. Covestro’s comprehensive material technology support will help Hikrobot enhance its product innovation capabilities and market competitiveness. We look forward to achieving more breakthroughs together at both the technology and product levels,” said Xie Mingqiang, Vice President and Head of Supply Chain at Hikrobot.

As the logistics industry accelerates its intelligent transformation, robots face increasing demands for precision, stability and service life. Under the MoU, the two companies will co-develop applications in express delivery, e-commerce and factory automation. Hikrobot will prioritize Covestro’s material solutions, while Covestro will provide comprehensive R&D and testing support.

Covestro addresses key challenges in smart logistics with advanced materials. For example, Bayblend® polycarbonate enables lightweight, impact-resistant housings and structural components, while Makrolon® polycarbonate offers high infrared transmittance for precise sensing and movement.

Partnering with Carthane: from automotive to robotics

Building on their established collaboration in elastomer materials for the automotive sector, Covestro and Carthane will expand into robotics, focusing on applications such as robot feet.

“Covestro is a long-trusted strategic partner of ours. Our successful collaboration in the automotive sector provides a solid foundation for this expansion into robotics. Covestro’s strengths in material innovation complement Carthane’s capabilities in value chain management and systems integration, and together we will drive the commercial adoption of advanced materials in the robotics sector,” said Hou Zhenkun, Director and General Manager of Carthane.

Robot feet and joints require high performance in shock absorption, noise reduction, impact resistance and durability. Covestro’s Vulkollan® elastomer, with its outstanding dynamic load-bearing capacity and fatigue resistance, as well as excellent wear and impact resistance, effectively protects critical robotic components, significantly extends the service life of robot feet, and enhances overall operational stability and reliability.

Visit Covestro at CHINAPLAS 2026, Hall 7.2, Booth C38, National Exhibition and Convention Center (Shanghai), to discover how the Material Effect is shaping the future.

“Technological innovation is advancing at an unprecedented pace, reshaping industries worldwide. The rapid rise of AI in particular is creating a wave of new applications,” said Lily Wang, President of Engineering Plastics at Covestro. “In response, Covestro continues to develop sustainable, high-performance solutions for customers, leveraging the ‘Material Effect’ to redefine industry boundaries and drive innovation in next-generation mobility, electrical and electronics, and healthcare, while advancing our commitment to a circular economy.”

Advancing Intelligence Frontiers

Advances in AI and intelligent technologies are reshaping industry boundaries, giving rise to sectors such as low-altitude aviation, embodied intelligence and smart energy. These emerging industries require lightweight design, long-term reliability and high system safety to scale commercially, creating new demands for advanced materials.  

At CHINAPLAS 2026, Covestro will showcase the AirCab flying car developed by Chinese partner GOVY, illustrating the material possibilities for electric vertical takeoff and landing (eVTOL) aircraft. From lightweight polycarbonate windshields and integrated roof sensor modules to polyurethane encapsulation foams for battery safety and sustainable coating solutions for lightweight aircraft bodies, Covestro’s portfolio addresses key material challenges of eVTOL aircraft, helping them fly farther and more safely. Covestro materials also support AI navigation systems and lightweight structures for drones, helping advance the next generation of logistics.

Covestro will also present its complete solutions for humanoid robots. Polycarbonate enhances robot structural components with outstanding impact resistance for safer operation in challenging environments; in chip and electronic control housings and support structures, it enables efficient heat dissipation and integration with precision components; in battery enclosures, its flame-retardant properties maintain even temperature distribution for long-term stable operation under high heat; and in sensor housings, its high infrared transmittance supports accurate environmental sensing. In addition, rigid polycarbonate films can support human–machine interaction through ambient lighting effects and touch functionality, while flexible TPU films enable tactile sensing in dexterous hands and electronic skin.

In the smart energy sector, the increasing integration of energy storage, charging infrastructure and grid systems places higher demands on long-term outdoor reliability. Covestro’s polycarbonate solutions for equipment enclosures deliver durable performance in demanding environments, supporting applications ranging from energy storage and EV charging stations to residential clean-energy systems and portable power solutions.

Elevating Smart Living

As AI reshapes industries and daily life, it is raising the bar for everyday devices and the infrastructure behind them. Data centers and supercomputers need materials that meet strict standards for flame retardancy, thermal management and structural strength under high-density computing loads. Covestro’s bio-circular attributed Makrolon® RE solutions can help ensure reliable operation while reducing carbon emissions by around 80 percent compared to conventional alternatives.[1] For consumer electronics such as gaming devices and AI-powered laptops, Covestro offers glass fiber-reinforced or carbon fiber-reinforced engineering plastics with high stiffness, high translucency and flame retardancy, enhancing product performance, design and user experience.

Connectivity is also evolving rapidly, with satellite broadband bringing reliable, high-speed internet directly to homes, even in remote areas. Covestro’s engineering plastics ensure high signal transmittance, impact resistance and mechanical durability for terminals, enabling stable operation around the clock in demanding environments.

Empowering Connected & Trusted Healthcare

As wearable devices, remote care and AI-assisted diagnostics become more widespread, healthcare is moving closer to the home. Covestro has developed medical-grade material solutions across wearable monitoring, molecular diagnostics and precision drug delivery, helping enable a more connected and trusted healthcare ecosystem.

In diagnostics, Covestro showcases its material solutions through the Maestro point-of-care demonstrator. Built around Makrolon® Dx polycarbonate, the device leverages its optical clarity and low fluorescence to improve signal accuracy, enabling more precise molecular diagnostics in connected devices. In drug delivery, Covestro’s all-polycarbonate injection pen demonstrator uses low-friction, glass fiber-reinforced medical-grade polycarbonates to ensure smooth delivery, structural strength and dimensional stability. Adhesive-free assembly also enables easier disassembly and recycling. For medical wearables designed for extended wear, Covestro’s TPU films offer skin-friendly softness and excellent elasticity, providing a barely-there fit.

Visit Covestro at CHINAPLAS 2026, Hall 7.2, Booth C38, National Exhibition and Convention Center (Shanghai), to discover how the Material Effect is shaping the future.

[1] The CO2 footprint reduction is based on a cradle-to-gate life cycle assessment comparing Makrolon® RE to conventional polycarbonate and considers biogenic carbon uptake. The certified bio-circular share is attributed through mass balance methodology according to ISCC PLUS.

“Our customers are under pressure to innovate faster in today’s dynamic markets, and product cycles are getting shorter,” said Dr. Caroline Wolff, Head of Specialty Films for Asia Pacific at Covestro. “The expanded Shanghai TCC allows us to move beyond supplying materials and become a true development partner. By strengthening our prototyping and simulation capabilities locally, we can serve customers across Asia Pacific with greater agility, accelerate development timelines, and advance exciting next-generation applications such as smart automotive surfaces and humanoid robots.”

Upgraded equipment with enhanced capabilities

The TCC has upgraded its Film Insert Molding (FIM) capabilities, a technology that enables one-step fabrication of plastic components with a decorated or functional surface. This creates smart surfaces such as automotive exteriors and interiors with built-in functionalities like lighting, heating and controls. The new equipment includes a larger screen printer that can handle polycarbonate films nearly twice the previous size. This allows the team to prototype larger components, such as automotive front grilles, where sensors and display elements can be directly integrated into the exterior surfaces.

The upgraded facility now provides integrated FIM support, from selecting suitable resins and films to screen printing, forming, trimming and final molding. Flexible tooling systems help reduce prototyping costs and shorten development cycles. Design feasibility simulation enables early validation of concepts before full production.

Flexible Printed Electronics for robots 

The expansion also includes specialized equipment for Flexible Printed Electronics (FPE), which are electronic circuits printed on flexible substrates like TPU films that can be used in wearable devices and robots. A dedicated screen printer designed for conductive inks ensures precise control during circuit printing, while a new thermal forming machine allows the team to test how circuits perform when shaped into complex 3D forms. Maintaining electrical performance during forming remains a key challenge in flexible electronics. This supports emerging applications such as tactile sensors in dexterous hands and electronic skin for humanoid robots. The TCC also advises customers on processing conditions and circuit design.

The Specialty Films TCC is part of Covestro’s Asia-Pacific Innovation Center, which brings together R&D capabilities from multiple business units and the central group innovation function, with shared technical and digital infrastructure. “Expanding the Specialty Films facility shows our commitment to building world-class innovation capabilities closer to customers in Asia Pacific,” said Dr. Guo Ruijing, Head of Group Innovation and Sustainability Asia Pacific, and Head of the Asia-Pacific Innovation Center, Covestro. “It will also foster closer collaboration across our businesses and functions within the Innovation Center.”

The capacity expansion at Covestro Integrated Site Shanghai (CISS) comes in response to growing customer demand for TDI, a key component used primarily in flexible foams for furniture, mattresses and automotive applications. The debottlenecking project was completed on schedule and will enable Covestro to provide more reliable supply to customers throughout the region.

Commitment to supporting customer growth

"This investment demonstrates our commitment to supporting our customers' growth in Asia Pacific, particularly in China and the broader region," said Xiaobin Zhong, Covestro's Head of Performance Materials Sales in the Asia Pacific region. "By expanding our TDI capacity in Shanghai, we ensure reliable supply to meet increasing market demand while reinforcing our position as a preferred partner for the furniture and automotive industries."

The site, located in the Shanghai Chemical Industry Park, is one of Covestro's largest production facilities worldwide. The successful debottlenecking project involved optimizing existing production processes and infrastructure rather than building new production lines, resulting in a more resource-efficient approach to capacity expansion.

Disciplined investments in growth areas

"This achievement reflects our strategy of growing through smart, efficient investments that deliver maximum value to our customers," said Hermann-Josef Doerholt, Head of Performance Materials at Covestro. “It also further strengthens Covestro's global TDI production network, which includes world-scale plants in Dormagen, Germany and Baytown, Texas, ensuring that we can reliably serve customers across all major regions.”

TDI is an essential component for producing flexible polyurethane foams, which provide comfort in furniture, mattresses, and car seat

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 tons a year upon completion of the final phase, expected in the 2030s. This will then make it the company’s largest TPU production facility globally.

“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 our customers across Asia Pacific while strengthening our position in high-growth markets,” said Monique Buch, Chief Commercial Officer of Covestro. “The facility will enable us to deliver innovative TPU solutions closer to our customers, enhancing our service capabilities and responsiveness.”

Regional synergies with nearby R&D and AD capacities

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

“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 to footwear.”

“The Zhuhai site underscores Covestro’s long-term commitment to China and aligns with the country’s high-quality development and sustainability agenda. This investment further establishes Guangdong, with a particular focus on the Greater Bay Area, as Covestro’s strategic hub in China along with Shanghai, enabling us to deliver innovative solutions locally while supporting customers throughout Asia. We’re proud to contribute to China’s industry transformation and development as a reliable partner,” said Covestro China President Holly Lei.

The Zhuhai site is capable of producing TPU with the label “CQ”. Covestro materials with this designation contain at least 25 percent 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.

The launch and signing ceremony took place at Covestro’s Map Ta Phut production site, attended by Covestro executives led by Nisa Suttipornphaisankula, Managing Director, and Chaiyut Changjenrob, Map Ta Phut Site Manager, along with school administrators, teacher from partner school, representatives from the Map Ta Phut Industrial Estate, tripartite committee members, and Covestro team members. A key highlight was the signing of a Memorandum of Understanding (MOU) between Covestro and five schools: Wat Chak Louk Ya School, Wat Ta Kuan School, Wat Krok Yai Cha School, Ban Nong Fab School, and Wat Map Chalut School, reaffirming the commitment to collaborate throughout the project. The event concluded with a group photo symbolizing the strong partnership and shared vision for sustainability.

This program is more than a CSR initiative— it reflects Covestro’s commitment to supporting the tripartite network and meeting Environmental Impact Assessment (EIA) requirements. At the same time, it helps strengthen trust and relationships with local communities. By working closely with schools, we create meaningful opportunities for engagement and demonstrate that Covestro is a responsible and caring neighbor. These efforts enhance the company’s reputation and reinforce our long-standing presence in the region.

For Covestro employees, Green Guardians is also an opportunity to volunteer, share expertise, and develop new skills—from project coordination and community engagement to sustainability education.

Samaporn Ubonban, Principal of Wat Chak Luk Ya School, added:
“With the collaboration of Covestro, teachers, students, and all stakeholders, we are confident that the ‘Green Guardians’ project will create positive and lasting impacts for our youth and community. We are ready to support every activity Covestro organizes to equip children with the knowledge, understanding, and skills they need to care for the environment responsibly. We sincerely thank Covestro for initiating this project.”

The Green Guardians project aligns with Covestro’s global vision “To make the world a brighter place” and supports the United Nations Sustainable Development Goals (SDGs):

• SDG 4: Quality Education – Enhancing environmental education and resource management skills
• SDG 11: Sustainable Cities and Communities - Building sustainable communities starting from schools and families, extending to the wider community.
• SDG 13: Climate Action – Promoting awareness and behaviors that help mitigate climate impact
• SDG 17: Partnerships for the Goals – Strengthening collaboration between business, schools, and communities for sustainable outcomes

Nisa Suttipornphaisankula, Managing Director of Covestro Thailand, shared:
“Covestro’s community engagement focuses on two key pillars: education and the environment, aiming to create lasting positive impact. Our approach emphasizes meaningful collaboration—not just assistance, but strong partnerships between the company, schools, and the community. We thank all stakeholders, including school teams, local authorities, and Covestro employees, for making this project a reality.”

This launch marks more than just a CSR activity—it is an investment in the future of youth and communities, working together to build a society that values environmental responsibility and is prepared to meet sustainability challenges ahead.

This initiative integrates academic knowledge with real-world industry experience through a variety of activities, including expert-led lectures, off-site field visits, and hands-on workshops. Covestro has supported the learning journey throughout the program, offering insights from its experts and organizing field trips to Covestro’s production center in Map Ta Phut and local communities in Rayong.

In addition, students were given the opportunity to showcase their potential through the Creative Design for Sustainability Contest 2025, which challenged participants to develop concepts based on circularity. Covestro sponsored a total of 60,000 THB in scholarships for the contest, which attracted over 50 submissions.     

A panel of esteemed judges, comprising faculty members and Covestro professionals, selected three outstanding projects based on creativity, practical feasibility, alignment with sustainability principles, and the effectiveness of their presentation and communication.

The Best Design Award – Winner was presented to “Coral Wave”, a project by architecture students inspired by marine life struggling with plastic pollution. The design features an experiential space with physical barriers that simulate the challenges sea creatures face in polluted environments. It aims to raise awareness about plastic waste and coral bleaching, while using recycled plastic bottles as the primary material—demonstrating circularity in action and contributing to waste reduction. The Design Excellence Award – 1st Runner-Up went to “Reform – Plastic Waste into Wearable Art”, created by students from the Communication Design program. This project transforms plastic waste into artistic accessories, reflecting the idea of turning discarded materials into meaningful, wearable design. The Distinction Award – 2nd Runner-Up was awarded to “Second Nature”, another project by architecture students. The design features a modular structure that can be folded and easily relocated, incorporating reused plastic bags that have been cut, woven, and reshaped into sunshades. Installed in the faculty’s central courtyard, the piece explores the relationship between nature and human impact through its interaction with wind and natural light.

All three winning projects received scholarships sponsored by Covestro, with prizes of 20,000 THB, 15,000 THB, and 10,000 THB respectively. In addition, several recognition awards were granted, each accompanied by a 5,000 THB scholarship.

“Sustainable design is a core focus of our faculty, as our students will one day shape the built environment. Through this collaboration with Covestro, they gained valuable insights into circular design, material selection, and carbon footprint reduction—skills essential for responsible architecture,” said Asst. Prof.Waraluk Pansuwan, the Dean of SOA+D, KMUTT. “we’re grateful to Covestro for their support in enriching our curriculum and inspiring our students to turn ideas into real-world solutions.”

Khawissara Wattanapisit, Head of Corporate Communications - Covestro Thailand added, “this collaboration is more than just a competition—it’s a platform to shape future leaders in sustainable design. By working closely with KMUTT, we’re helping students connect classroom knowledge with real-world impact, ensuring they’re equipped to drive change in their communities and industries.”

This initiative reflects Covestro’s global commitment to sustainability, which is embedded in its vision to become fully circular. Through innovation and collaboration, Covestro aims to reduce environmental impact across industries and empower future generations to build a more resilient and resource-efficient world. We believe that great design doesn’t just shape spaces — it inspires change, drives impact, and builds a better future.

Beyond Covestro's recycled polycarbonate roof, the charging station also features EGAT AshNova concrete flooring made from fly ash, a by-product from Mae Moh Power Plant in Lampang province. This reduces cement usage and cuts Covestro (Thailand) Co., Ltd. reinforces its leadership in sustainable innovative materials by collaborating with the Electricity Generating Authority of Thailand (EGAT) to develop an environmentally friendly Electric Vehicle (EV) charging station. The company has provided high-quality recycled polycarbonate solutions for the station's roof, demonstrating its commitment to driving the circular economy and reducing carbon emissions.

Located at the EGAT Learning Center in Thap Sakae, Prachuap Khiri Khan province, the charging station was designed under the "Enlightened EcoCharge" concept, aiming to be more than just an EV charging point but also a learning resource and model for clean energy. The station is equipped with two DC fast chargers of 180kW and 120kW capacity, accommodating up to four vehicles simultaneously. Users can access the service through the EleXA application, with future plans to connect with the Charge+ application and roaming system to support users from Singapore and Malaysia. The station was officially launched on September 26, 2025.

Innovative Recycled Polycarbonate from Covestro

One of the highlights of this charging station is its environmentally friendly and sustainable materials, particularly the roof made from Covestro's recycled polycarbonate, Makrolon® RE, produced at Covestro Map Ta Phut site in Rayong province. Covestro's RE Series polycarbonate is manufactured from bio-circular renewable raw materials that replace fossil-based resources, containing 72-89% bio-based content verified through ISCC PLUS certification. These materials can reduce carbon emissions by up to 100% in select grades, making it the world's first carbon-neutral polycarbonate. The RE Series offers identical properties to conventional fossil-based polycarbonates, allowing for direct substitution without modifying existing manufacturing processes. It is ideal for electronics, automotive, and medical industries seeking to reduce environmental impact while maintaining high performance.

Covestro leads in developing both mechanical and chemical recycling technologies for polycarbonate, enabling plastic reuse while maintaining properties equivalent to new materials, suitable for high-performance applications.

Collaboration for Sustainability

Beyond Covestro's recycled polycarbonate roof, the charging station also features EGAT AshNova concrete flooring made from fly ash, a by-product from Mae Moh Power Plant in Lampang province. This reduces cement usage and cuts carbon dioxide emissions from cement production by up to 58%. Additionally, the station uses low-VOC polyurethane paint from Nippon Paint (Thailand) Co., Ltd.

"This collaboration between Covestro and EGAT not only supports electric vehicle adoption in Thailand but also demonstrates the potential of high-quality recycled materials in practical applications, aligning with Covestro's goals of fully embracing the circular economy and becoming a carbon-neutral organization. Covestro is committed to expanding the use of recycled materials in various products and continuously developing recycling technologies to create a sustainable future for everyone," said Ms. Nisa Suttipornphaisankula, Managing Director of Covestro (Thailand) Co., Ltd.

“For ten years, our people have proven that breakthrough innovations happen when curious minds meet courageous hearts,” said Markus Steilemann, CEO of Covestro. “I'm incredibly proud of our global team. Their passion, creativity, and resilience have formed the foundation of our culture. Thanks to their dedication, we continue to overcome challenges, seize opportunities, and create solutions that make the world a brighter place.”

A decade of transformation

Over the past decade, Covestro has achieved major milestones on its journey toward becoming a more innovative, sustainable, and resilient company. Since 2015, Covestro has invested more than 4 billion euros in expanding and modernizing its global operations, with a clear focus on sustainable production technologies. A significant step was the successful integration of DSM’s Resins & Functional Materials business, which strengthened Covestro’s position in sustainable coating solutions and broadened its customer base.

The company has driven forward key technologies for renewable-based raw materials, pioneered new chemical recycling methods for high-performance plastics, and signed 11 power purchase agreements to significantly increase the share of renewable energy in its operations. In recognition of its commitment to innovation and people, Covestro has repeatedly been named a top employer in multiple regions, including Greater China, where the company operates 10 production sites alone.

People and values at the core

Covestro’s success over the past decade is rooted in its purpose “to make the world a brighter place” and a corporate culture defined by its C³ values: Curious, Courageous, and Colorful. These values shape how the company approaches innovation and collaboration. Curiosity drives Covestro to explore new solutions; courage empowers teams to make bold decisions; and diversity of perspectives fosters creativity and resilience.

The company’s “We Are 1” culture reflects this spirit of collaboration and shared purpose, connecting more than 17,000 employees across regions, functions, and backgrounds. It is this collective mindset that has allowed Covestro to evolve from a newcomer in 2015 into a trusted global partner shaping sustainable material solutions.

Celebrating a global community

To mark its 10th anniversary, Covestro is celebrating with employees around the world and launching initiatives that reflect the company’s deep appreciation for its people.

In Germany, large-format posters are being installed in and around production sites as a visible expression of thanks to employees. These posters complement small gatherings and celebrations taking place at the sites and within the plants. In addition, Covestro, together with the Works Council, is supporting local food banks at its German sites with donations – a way to also say thank you to the communities, with a special focus on those in need. In addition, a specially designed Covestro-branded bus is now on the road in Leverkusen – featuring materials produced by Covestro itself, including polycarbonates in the windows, polyurethanes in the seats, and special coatings for the exterior surfaces. 
In North America, Covestro has initiated the “10 for 10” corporate volunteering campaign, aiming to reach 10,000 volunteer hours by September 2025. For every recorded volunteer hour, Covestro donates 10 meals to local food banks, with a goal of up to 100,000 meals in total. This initiative reflects the company’s ongoing commitment to supporting the communities where it operates.

Across China and the Asia-Pacific region, the anniversary celebrations focus on employee recognition and community engagement. Highlights include a video campaign capturing personal stories from employees who have shaped Covestro’s first decade, a photo initiative where colleagues form “10” or “We Are 1” shapes, and the “Well Together” wellbeing program, which encourages employees to participate in activities such as running, cycling, and hiking to promote health, teamwork, and inclusion.

Looking ahead

As Covestro enters its second decade, the company remains committed to driving innovation and shaping a sustainable future. Strategic priorities include achieving full circularity, reaching climate neutrality across operations, accelerating the shift from fossil-based to renewable raw materials, and expanding digital capabilities, including the application of artificial intelligence to improve efficiency and develop new solutions.

Partnerships will play a central role in this transformation. Under this lens, the potential partnership with XRG also plays an important role, where we aim to jointly drive innovation, expand sustainable material solutions, and strengthen our position in global markets. By working closely with partners across value chains, Covestro is determined to enable next-generation materials that address global challenges while supporting sustainable growth.

This project replaces diesel vehicles with five new electric trucks in a first phase for the transportation between Covestro's facility and Katoen Natie warehouse in Rayong. With this, Covestro Map Ta Phut site becomes the first among Covestro sites in the Asia-Pacific region to use electric bulk trucks. Starting from July 2025, the shuttle trips, covering more than 200,000 kilometers annually will be performed by electric vehicles (EVs).  The transition is expected to reduce greenhouse gas emissions around 400 tons per year, equivalent to the environmental impact of planting 20,000 trees.

The initiative reflects Covestro’s and Katoen Natie’s long-term partnership and shared environmental goals. By integrating electric trucks into their daily operations, they are actively contributing to a cleaner, more sustainable future.

“The transition to clean energy is a cornerstone of our sustainability strategy,” stated Kenny Van der Beken, CEO at Katoen Natie Services (Thailand) Company Limited. “These EV trucks, combined with other initiatives such as solar panel expansion and electric forklifts, will help us achieve a 33% reduction in CO₂ emissions across our operations.”

To achieve scope 3 greenhouse gas emissions goal - net zero tons of CO₂ by 2050, Covestro is scrutinizing every part of its supply chain. Cutting indirect emissions from both upstream and downstream activities is essential for this goal, as these sources account for approximately 80 percent of the company's overall emissions footprint.

"This partnership between Covestro and Katoen Naties demonstrates our tangible commitment to reducing emissions across our entire supply chain. The project aligns with Thailand's sustainability goals and creates a scalable solution that could be implemented across other Covestro operations globally", added Chaiyut Changjenrob, Site Manager - Covestro Map Ta Phut site, Covestro (Thailand) Co., Ltd.

As part of the next steps on green logistics journey, Covestro is exploring the feasibility of implementing a standalone electric pellet conveying system at the Covestro Map Ta Phut site to replace the current diesel-powered system.  This initiative, developed in close collaboration with Katoen Natie, represents a strategic move to reducing emissions across our logistics operations. Through dedicated partnership with Katoen Natie, Covestro is advancing its sustainability agenda while maintaining economic efficiency.

Desmopan® FLY features an advanced formulation that enables superior supercritical fluid dispersion during the molding process, resulting in uniform fine-cell structured foams with outstanding mechanical properties. For footwear applications, this translates into midsoles with superior cushioning and energy return properties, and long-lasting comfort performance. The absence of chemical blowing agents and crosslinking additives ensures recyclability of the midsole; when combined with soft TPU outsole, the whole sole system supports circular economy initiatives.

“Leading sports brands are driving unprecedented demand for materials that combine elite performance with strong environmental credentials,” says Wilson Chan, Head of Business Development TPU Asia Pacific at Covestro. “Desmopan® FLY brings exceptional lightweight and resilience properties while maintaining dimensional stability and durability throughout the product lifecycle. Its optimized processing enables efficient production through automated injection molding, allowing brands to create high-performance, recyclable footwear that meets demanding consumer expectations.”

In a pioneering industry move, Covestro has installed the advanced SCF injection foaming system at its TPU Asia-Pacific R&D Center in Taiwan. This state-of-the-art facility enables Covestro to provide comprehensive R&D support and rapid application services for customers’ specific requirements, demonstrating Covestro’s ongoing commitment to advancing footwear material solutions and supporting the industry’s evolution.

“Our investment in the SCF injection foaming system marks another milestone in Covestro’s continuous innovation journey,” explains Dr. Christian Haessler, Head of Global Innovation TPU at Covestro. “This in-house capability enables us to optimize TPU material properties with precise SCF processing parameters. By being among the first in the industry to integrate this advanced technology within our R&D center, we can effectively combine TPU material and SCF injection expertise to accelerate customers’ development from concepts to commercial production.”

The combination of SCF foaming technology and Desmopan® FLY delivers an energy-efficient manufacturing process that reduces the overall carbon footprint. The automated injection process integrates multiple components in a single step, enabling substantial production efficiency while maintaining consistent, high-quality output.

Desmopan® FLY is now commercially available, supported by Covestro’s comprehensive technical expertise and advanced in-house facilities. This integrated material and technology platform empowers sports brands in their journey toward advanced footwear solutions, combining performance, sustainability and production efficiency.

"This new line of polycarbonate represents a significant step in supporting the automotive industry's transformation towards a circular future," said Lily Wang, Global Head of the Engineering Plastics Business Entity at Covestro. "By offering high-quality PCR materials derived from end-of-life headlamps, we're enabling our customers to meet increasingly stringent regulatory requirements while contributing to closed-loop recycling of automotive plastics."

Under this initiative, Covestro has been collaborating with partners, including Chinese recycler Ausell and leading automakers, to establish closed-loop pathways for high-value plastics from end-of-life vehicles (ELVs). This program focuses on strengthening recycling processes and establishing reliable supply chains for high-quality recycled materials from automotive waste streams. Through this partnership, Covestro and its value chain allies have developed practical solutions for collecting and mechanically processing end-of-life headlamps into high-quality PCR grades suitable for a range of automotive applications.

"This partnership underscores the importance of cross-sector collaboration in driving the circular economy forward," said Martin Hansen, Regional Director of GIZ in East Asia. "By bringing together key industry players, we are not only creating viable solutions for recycling high-value plastics from end-of-life vehicles but also fostering innovation that supports a sustainable, closed-loop material flow in the automotive industry."

The introduction of these new PCR grades comes at a critical time as the automotive industry, one of the most resource-intensive sectors, faces increasing environmental challenges and regulatory pressures. The EU's End-of-Life Vehicle Directive, which sets recycling targets, along with China's Extended Producer Responsibility (EPR) program and growing sustainability requirements in key global markets, are pushing automotive manufacturers worldwide to seek innovative and sustainable material solutions that comply with evolving regulations.

Covestro’s new PCR grades meet the high-performance standards required for demanding automotive applications, offering excellent surface quality for superior aesthetics and adhering to strict Vehicle Interior Air Quality (VIAQ) requirements. This combination of sustainable content and premium performance empowers automotive manufacturers to meet both regulatory demands and environmental goals without compromising on product quality.

As part of its broader commitment to sustainability and the circular economy, Covestro continues to expand its portfolio of recycled-content materials. In recent years, the company has introduced PCR polycarbonates with up to 90 percent recycled content, and opened its first dedicated mechanical recycling compounding line for polycarbonates in Shanghai. Last year, it introduced a new range of polycarbonates based on chemically recycled, attributed material from post-consumer waste via mass balance for the first time.

"The new production facilities are equipped with state-of-the technology to enable an efficient production and thereby reduce our CO₂ emissions," says Thorsten Dreier, Chief Technology Officer of Covestro. “With the expanded capacity, we can meet our customers' growing demand for innovative specialty films, especially in medical technology, in the region Asia-Pacific and strengthen our Solutions & Specialties segment."

Covestro has been operating a production facility for Specialty Films in Thailand since 2007. The range comprises polycarbonate films from the Makrofol^® range and Bayfol^® products made from polycarbonate blends. These high-performance specialty films are used in many applications across multiple industries, such as healthcare, mobility and Identification Documents.

“The new production facilities are important to us because it enables faster time to market and at the same time expands our market access in Asia-Pacific.” says Aukje Doornbos, Global Head of the Specialty Films business entity. “With market-focused innovations and a stronger customer orientation we want to drive growth for Covestro.”

Since 2022, the Map Ta Phut site is ISCC PLUS certified, enabling it to manufacture and supply mass-balanced products. With the mass balance approach, bio-based or recycled raw materials are fed in at an early stage of raw material extraction and mathematically allocated to the finished products. This saves fossil raw materials and reduces CO₂ emissions, while the quality of the mass-balanced products remains identical to that of purely fossil-based products. With this drop-in solution, manufacturers can continue to use their proven formulations, equipment, and processes.

ISCC is an internationally recognized sustainability certification for biomass and bioenergy. The standard covers all stages of the value chain and is used worldwide. Customers can use these products in their established processes and apply them to meet their sustainability goals. In addition, Covestro already offers a range of films made partly with plant-based raw materials or partly from recycled plastics.

Desmophen^® CQ NH polyaspartics contain at least 25 percent bio-based content, contributing to a lower carbon footprint, and maintain the high performance of their fossil-based predecessors. These resins offer excellent chemical and weather resistance, ensuring long-lasting stability and protection across diverse environments. With rapid curing properties, they enhance construction efficiency for a quicker return to operations. Additionally, they are formulated to minimize VOC and odor emissions, supporting a reduced environmental impact. Key applications include wind turbine coatings, flooring coatings and grouts.

Notably, the Foshan site is entirely powered by renewable energy sourced from offshore wind farms in southern China, further reducing the cradle-to-gate carbon footprint of Desmophen^® CQ NH.

“Covestro is dedicated to promoting a circular economy, which includes expanding the use of alternative raw materials and transitioning to renewable energy in production,” said Anand Khot, Senior Vice President of Coatings and Adhesives for Asia Pacific at Covestro. “Our local production of partially bio-based Desmophen^® CQ NH demonstrates our commitment to building a stable and efficient supply network in Asia Pacific that quickly adapts to market needs, supporting our customers’ and end-users’ requirements for increased circularity.”  

Desmophen^® CQ NH is part of Covestro’s Pasquick^® fast-curing coating technology and can also be paired with other partially bio-based products, such as Desmodur^® CQ aliphatic polyisocyanates, within the Pasquick^® technology portfolio.

Currently, Covestro locally produces about 75 percent of its products sold in the coatings and adhesives industry across Asia Pacific, reinforcing the company’s commitment to strengthening manufacturing in the region.

"The Covestro Elite Industry-Academia-Research Network is a groundbreaking initiative that opens up exciting new possibilities for innovation” said Dr. Andre Rittermeier, Head of Group Innovation and Sustainability APAC. “By facilitating cross-disciplinary and cross-regional collaboration between industry and academia, it accelerates technological advancements while playing a pivotal role in nurturing local R&D talent. The Elite Network also showcases Covestro's strategic commitment to open innovation, sustainability-focused R&D collaborations, and building an ecosystem of partners to unlock circular business models in the Asia-Pacific region." 

“This collaboration between NCU and Covestro marks a new milestone in Germany-Taiwan cooperation,” said Dr. Jörg Polster, Director General of German Institute Taipei. “The cooperation between academia and private enterprise will foster innovation, sustainable development, and global perspectives, benefiting both Taiwan and Germany and contributing to a better future of both.” 

“Through our existing cooperation, we have jointly filed multiple patents in the field of UV-curable coatings. With the NCU joining the Asia Pacific Elite Industry-Academia-Research Network we expect to increase the diversity of Covestro's innovation ecosystem, allowing Taiwanese R&D talents the participation in materials development projects across the Asia Pacific region and globally. Finally we will accelerate the introduction of sustainable material solutions to Taiwan's electronics and electrical appliance industries." stated Dr. Carsten Wildebrand, Managing Director of Covestro Taiwan. 

“Covestro has established Taiwan's first foreign-invested R&D center located on a university campus, named the "Covestro Global Center for New Energy-Curing Technologies," said Jing-Yang Jou, President of National Central University. “This collaboration represents a close industry-academia partnership, with both parties hopeful for an expanded scope of cooperation in the future. The university's research technologies are expected to be applied to industry, creating a mutually beneficial model of collaboration.” 

“This collaboration between National Central University and Covestro aligns with Taiwan's innovation strategy, promotes sustainable development, and enhance the global competitiveness of industry-academia partnerships,” said Dr. Wang-Long Li, Director General of Department of International Cooperation & Science education of NSTC. 

In addition to its major R&D centers in Leverkusen (Germany), Pittsburgh (USA), and Shanghai, Covestro R&D centers located in Taiwan, Japan, and India focused on the development of specialty materials solution. Through the Asia Pacific Elite Industry-Academia-Research Network, Covestro aims to integrate broader open innovation resources across the Asia Pacific region, providing a pipeline of diverse talents to accelerate R&D processes for both regional and global projects. 

 

Construction is set to begin in late 2024, with the facility expected to become operational in 2025. The center will be outfitted with advanced equipment to address complex market demands and leverage local resources and networks to streamline talent and administrative management.

“Establishing this new application development center in Guangzhou is a strategically important move for us to jointly with our customers leverage on the vibrant Asia-Pacific and especially the Chinese market. The center will also contribute to developing more sustainable TPU solutions, underscoring our dedication to innovation that benefits our esteemed customers and partners,” said Dr. Andrea Maier-Richter, EVP and Global Head of TPU at Covestro. “Together with the ongoing investment in our largest global TPU production site in Zhuhai, we will soon run two powerful engines in two major cities. This highlights our company’s ongoing commitment to growth and its commitment to the innovative capabilities of TPU in particular.”

With the existing regional R&D center in Changhua, the ongoing construction of the largest global TPU production site in Zhuhai and the upcoming APAC application development center in Guangzhou, the collaborative and complementary strengths from the three sites are expected to drive even more powerful regional synergies.

“The new application development center in Guangzhou will play an instrumental role in engaging with major TPU industry clusters across China and APAC, particularly in consumer electronics and specialty extrusion applications,” said Kevin Ho, Head of Sales & Market Development for TPU in APAC at Covestro. “We are not only close to these industry clusters, we are also at the forefront of listening to our customers, partners and the industry value chain. By bolstering our AD capacities, we ever better can sense and meet the nuances and changes and navigate our solutions and services with velocity, agility and customer centricity.“

Covestro is committed to offering sustainable and circular solutions that align with its long-term goals. The Desmopan^® CQ TPU portfolio is a great example, utilizing alternative raw materials such as feedstocks from waste or biomass, attributed via mass balancing. The company as a whole furthermore aims to become fully circular and aims at becoming operationally climate neutrality by 2035, striving to utilize only renewable energy for its operations by then. This lowers the carbon footprint of products like TPU even further. This dedication of the company is also reflected in the investments in its new TPU properties, where such developments shall be driven further.

“We are excited to partner with Li Auto and support their pursuit of intelligence and electrification in automobiles,” said Guido Naberfeld, Senior Vice President, Head of Sales and Market Development Mobility at Covestro, during the MOU signing event at Covestro’s integrated production site in Shanghai. “By leveraging our expertise in engineering plastics and circular solutions, we aim to enable innovative future-oriented mobility solutions and reshape automotive material cycles, driving the industry towards a smarter and more circular economy.”

Under the MOU, Covestro and Li Auto will establish a “Joint Innovation Platform” to drive the development and application of more sustainable engineering plastics with alternative feedstocks, such as bio-waste and recycled sources, across various automotive components. Key initiatives will involve integrating materials attributed with bio-circular content through mass balancing into automotive lighting, functional interior and exterior parts, and smart system components. The two sides also agreed to explore innovative processes and business models for using recycled lighting materials in new automotive parts together with value chain partners.

Under the joint platform, the two sides also seek to deepen their collaboration in developing lighting, smart systems, and thermal management solutions. This will include high-performance optical-grade materials, smart surface technologies and thermally conductive solutions.

“Li Auto is dedicated to implementing the ‘Smart + Electric’ strategy with innovative materials and designs, aiming to offer users a safer, more comfortable, convenient and refined travel experience,” said Liao Mengjun, Vice President of R&D Operations at Li Auto. “Our partnership with Covestro will expedite our exploration in advanced materials, supporting the ongoing enhancement of user product demands.”

During the event, the two parties also unveiled two jointly-developed, industry-leading materials: innovative light-diffusing and infrared-transparent Makrolon® polycarbonates. The light-diffusing polycarbonate allows for a more refined and evenly-distributed illumination effect for smart headlights. Meanwhile, the new infrared-transparent polycarbonate achieves a high transmittance of over 85 percent in the near-infrared spectrum. Compared to conventional black polycarbonate, which absorbs solar energy across the entire spectrum, this new material significantly enhances the light aging resistance of components, contributing to greater durability for the smart headlights of Li Auto.

As part of this collaborative effort, the initial phase involves the introduction of the first electric heavy-duty truck to replace the existing diesel truck for transporting polymeric diphenylmethane diisocyanate (pMDI) from the Shanghai site to nearby warehouses. This transition is set to cover part of the annual pMDI shuttle volume at Covestro’s largest production site, resulting in a projected reduction of 43 tons of CO₂ equivalent in well-to-wheel emissions (CO₂ emissions over the entire life cycle of fuels) in 2024 compared to the 2022 baseline – a 22 percent decrease. The future use of green power to charge the trucks will further contribute to the goal of achieving net zero in logistics.

Both companies will consistently evaluate the electric truck’s performance and efficiency, aiming for continuous optimization of the total cost of ownership associated with the vehicle. Based on these evaluations, decisions will be made regarding potential scalability.

"As a pivotal route toward achieving net zero, green logistics is poised to deliver sustainable solutions for mitigating scope 3 emissions. We look forward to working with Covestro to advance the exploration and adoption of sustainable logistics solutions in the chemical industry and contribute to the ultimate goal of net-zero emissions from the logistics side," said Fu Peng, Executive Vice President of COSCO Shipping Logistics & Supply Chain Management.

"The supply chain plays a crucial role in the chemical industry’s journey to achieve climate neutrality, demanding collaboration beyond individual company boundaries. The commercial deployment of this groundbreaking electric truck for chemical shuttling is poised to act as a catalyst, propelling our site and company towards climate neutrality and a circular economy," stated Dr. Yun Chen, General Manager of CISS.

Contributing to scope 3 emissions reduction

Approximately 80 percent of Covestro’s total emissions stem from scope 3 emissions, or indirect emissions resulting from upstream and downstream processes, including supply chains, material transport, and raw material processing.

In the Asia Pacific region, where around 70 percent of Covestro’s products are transported by truck, concerted efforts to reduce emissions within the logistics framework are specifically targeted at trucks. In light of this, the green logistics program was launched last year with the objective of devising more sustainable methods for road transportation via trucks. Collaborators in this endeavor include customers, logistics solution and infrastructure partners, and industry organizations, with the network steadily expanding.

The program is designed to rigorously assess the viability of specific strategies under distinct scenarios. Among the explored solutions is the utilization of subsidized biodiesel in Shanghai for long-haul transport of dangerous goods, as well as the integration of hydrogen fuel cell-powered trucks.

"We are committed to expanding our network of partnerships to actively seek, pilot, and scale up sustainable, low-carbon logistics solutions that meet both environmental and commercial needs. We anticipate continued progress in introducing new solutions aimed at significantly reducing our scope 3 emissions, thereby propelling us towards a climate-neutral future," said Marius Wirtz, Senior Vice President, Supply Chain & Logistics Asia Pacific, Covestro.

Covestro has said that it is aiming to become operationally climate neutral – this includes reducing both direct emissions from its own operations (scope 1) as well as indirect emissions from purchased energy (scope 2) to net zero – by 2035. The company is poised to unveil its reduction targets for scope 3 emissions soon.

Thanks to its long history in polyurethanes chemistry, Covestro boasts a portfolio of insulation material solutions renowned for exceptional thermal and weather resistance. Initially used in refrigeration, they have great potential to enhance energy efficiency in construction.

“Covestro is devoted to becoming fully circular. At the same time, we help our customers and major industries to achieve climate neutrality through our material innovations.¹ The construction industry, particularly in China, is central to this mission. With our new partnerships we will expedite the adoption of more sustainable construction practices in China and jointly play a vital role in mitigating climate change,” said Dr. Markus Steilemann, CEO of Covestro, during the signing of agreements with named companies at the China International Import Expo (CIIE), an event dedicated to promoting imports and international trade.

One key collaboration involves PDG Group and insulation integration specialist Collodin, working on an innovative polyurethane exterior wall insulation system designed to be thinner and lighter than conventional alternatives. This system, named the ‘carbon-optimized composite wall insulation structural integration system’, combines polyurethane insulation with low thermal conductivity and a lightweight non-combustible layer, further reinforced by composite tie bars, ensuring superior insulation. A comprehensive study will evaluate its energy efficiency, safety, and economic viability before implementation on the developer’s future projects, provided it meets all compliance conditions.

“We look forward to partnering with sustainable material expert Covestro in promoting this innovative solution, which could also set new standards in the industry. We believe this collaboration will facilitate the transformation and upgrade of the construction sector, promoting low-carbon, high-quality development in line with China’s dual carbon goals,” emphasized Li Junlan, Chairman of PDG Group.

Another groundbreaking partnership involves Lujiazui Group and Chinese composite profile maker Deyilong. Together, they are developing a low-carbon, energy-efficient window and door system tailored to meet Shanghai’s requirements on ultra-low energy buildings. This system will leverage Covestro’s Baydur^® Pultrusion, a composite material with exceptional thermal insulation, mechanical strength, and durability. The whole window system thereby can be made thinner for better aesthetics.

“We look forward to working with partners including Covestro, which has a proven track record in the field of efficient insulation in windows and doors. We aim to leverage Lujiazui Group’s property development strengths in Pudong, Shanghai to promote these excellent window and door systems and help elevate the industry’s energy efficiency level,” said Xu Erjin, Chairman of Lujiazui Group.

“We are excited to be connected by the CIIE with Chinese property developers, which provides us with new opportunities that will last long. We intend to promote more sustainable and low-carbon solutions for the construction industry, enhance market penetration of energy-saving building solutions, and make efforts towards China’s infrastructure development and dual carbon goals,” said Holly Lei, President of Covestro China.

For a closer look at Covestro’s solutions for a fully circular future at the CIIE, visit us at booth 3B6-05, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2023.

^{1 Carbon neutrality of Covestro products is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (of Covestro), also known as cradle-to-gate assessment. The methodology of our LCA, for which an external audit and certification will soon be available, is based on the ISO 14040 and 14044 standards. The calculation takes into account biogenic carbon sequestration based on preliminary data from the supply chain. No compensation measures were applied.}

The joint lab will mainly focus on the commercialization of low-carbon material solutions in future EV models and the establishment of relevant standards, as well as the development of next-generation smart surface technologies and battery solutions. This initiative builds upon a cooperation agreement signed between the two companies at the CIIE last year.

"We’re delighted to deepen our collaboration with HiPhi," said Dr. Markus Steilemann, CEO of Covestro, during the unveiling ceremony at Covestro’s booth at the CIIE. "We set out to address the key challenges of future mobility with the launch of the joint lab. With our common commitment to pioneering low-carbon smart mobility and by combining our strengths and resources, we believe the lab will accelerate the automotive industry’s transformation towards a smarter and climate-neutral future."

"HiPhi aims to redefine the luxury brand in the new era. We are accelerating the adoption of intelligent and low-carbon technology in smart EVs to provide global users with a safe, efficient and sustainable travel experience, thereby changing the future of mobility and contributing to society," said David Ding, Founder and CEO of HiPhi. “Covestro’s advanced material expertise is key to helping us achieve this vision. The establishment of our joint laboratory stems from Covestro’s recognition of the innovative strength represented by HiPhi and other Chinese companies. We also aspire to empower our global partners and foster mutually beneficial relations through the CIIE.”

On display at Covestro’s booth at the CIIE is the HiPhi Y, the latest luxury SUV that incorporates advanced polycarbonate solutions from Covestro, most notably in the headlamp and LiDAR lenses. As EV becomes increasingly smarter, the headlamp presents new opportunities in digital communication beyond lighting. On the HiPhi Y, the headlamp lenses are turned into a projector to display signs and patterns in front of the vehicle, creating an interactive interface with pedestrians and other vehicles. Covestro’s high optical performance Makrolon^® AL solutions offer the needed dimensional stability, UV resistance and high transparency required for this application. In the LiDAR lenses, the Makrolon^® AX portfolio demonstrates superior performance compared to glass, including excellent infrared transmittance, shaping curved surfaces and impact resistance against stone chips. They can also endure the working environment of LiDAR at temperatures from 110 to 115 degrees Celsius for extended periods.

"As the mobility industry embarks on a journey towards carbon neutrality, the demand for circular, low-carbon footprint materials is growing rapidly and will only accelerate in the near future," said Lily Wang, President of the Engineering Plastics segment at Covestro. "We hope to collaborate with more like-minded companies, like HiPhi, to accelerate the decarbonization trend and pioneer smart technology development at the same time."

HiPhi has been a long-term partner of Covestro since 2018. Covestro’s material solutions have been applied to HiPhi’s flagship models, such as the polycarbonate solutions that enable a "smart" B-pillar equipped with complex functions in the all-electric SUV HiPhi X. HiPhi Z, a smart sports sedan, employs polycarbonate grades for the touchpad switch on its steering wheel – enabling a futuristic interactive design – as well as high performance waterborne polyurethane adhesives for auto interiors.

For a closer look at Covestro’s solutions for a fully circular future at the CIIE, visit us at booth 3B6-05, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2023.

“In the face of global challenges such as climate change, innovative materials like plastics are needed more than ever to drive progress towards a truly sustainable future ,” says Dr. Markus Steilemann, CEO of Covestro. “China, with its ambitious climate targets, is a leader in dynamic markets like electric vehicles and renewable energy. We are eager to contribute our material expertise to aid the nation’s transition, while driving fresh business momentum.”

Under the banner of “Becoming Fully Circular and Climate Neutral,” Covestro’s CIIE booth features dedicated areas, including “Beyond Mobility”, “Green Home”, “Renewable Energy” and “Fully Circular”. Several showcases will highlight the pivotal role of sustainable materials in these sectors. Additionally, a dedicated “Covestro Story” area shall engage visitors, particularly those outside the chemical industry.

Chemical recycling of polyurethane foams

The “Fully Circular” zone will for example demonstrate advancements in recycling technologies and in the use of alternative raw materials. Notably, it will showcase a recycled foam created through Covestro’s proprietary chemical recycling process. This groundbreaking process is capable of transforming end-of-life mattress foam directly into its core building blocks, breathing new life into old foam.

At the center of “Beyond Mobility” stands Chinese EV maker HiPhi’s latest luxury SUV – the HiPhi Y. It extensively incorporates Covestro’s advanced and sustainable material solutions in interior and exterior components. This includes the use of high optical performance polycarbonate in LiDAR lenses, taking advantage of the material’s temperature resistance up to 115 degrees Celsius along with its excellent infrared transmittance, ensuring the reliable and stable operation of the entire system. The strengthened partnership builds upon a cooperation agreement signed between the two sides at last year’s CIIE.

Covestro also aims to foster collaborations for ultra-low energy buildings (ULEB). The company’s materials can support making buildings more energy efficient and causing less emissions – key to the sector, which is one of the major contributors of global emissions. Covestro will for example show polyurethane pultrusion composites for window frames, and highly efficient building insulation solutions at the “Green Home” zone. At this year’s CIIE, the German materials manufacturer will sign agreements with Chinese real estate developers and value chain partners, forming multi-party business collaborations in this vital domain to expedite the adoption of sustainable solutions.

“The CIIE has consistently proven to be a highly rewarding endeavor for Covestro. It offers a unique platform to strengthen partnerships and promote our approach to becoming circular and how we can support downstream industries to do the same,” says Holly Lei, president of Covestro China. “We are committed to delivering versatile solutions and exploring innovative business models in collaboration with value chain partners both within and beyond the CIIE venue, in support of China’s sustainable development.”

The CIIE stands as the world’s first national-level import-themed exhibition, an annual event since 2018. This year, it draws over 3,400 international exhibitors and is expected to host hundreds of thousands of visitors. The CIIE serves as a platform that fosters international procurement, investment promotion, cultural exchange, and open cooperation. China’s ambitious climate goals, including reaching peak carbon emissions by 2030 and attaining carbon neutrality by 2060, carry global significance to meet the Paris’ agreement and remain a consistent focal point in the exhibits and activities at the CIIE.

For a closer look at Covestro’s solutions for a fully circular future at the CIIE, visit us at booth 3B6-05, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2023.

"The launch of our MCR production line marks another significant stride in our journey towards achieving a circular economy and operational climate neutrality by 2035," said Sucheta Govil, Chief Commercial Officer of Covestro. "Plastic waste recycling is pivotal in realizing this vision, and through the expansion of our recycled plastics production capacity, we aim to lead the way in driving sustainability across diverse industries."

Covestro is committed to supplying over 60,000 tons of recycled-content polycarbonates annually in the Asia Pacific region by 2026, in response to robust market demand. Recently, the company also transformed an existing compounding line at its Map Ta Phut site in Thailand for mechanically recycled polycarbonate.

"These investments enable us to meet the rising demand for PCR polycarbonates, enhancing our capacity and efficiency. With new or repurposed capacity now operational, we are better positioned to assist our downstream customers in their journey towards more sustainable products, expediting the transformation of industries towards a circular and climate-neutral future," said Lily Wang, Head of Covestro’s Business Entity Engineering Plastics.

A broad range of PCR portfolio

The demand for such materials is surging on a global scale, driven by regulatory initiatives like the European Union’s proposed Directive on end-of-life vehicles (ELV Directive), which sets strict benchmarks for the utilization of recycled plastics. Furthermore, industries like consumer electronics are poised for increased demand for recycled materials, especially those with a substantial recycled content.

These market dynamics underscore the significance of Covestro’s recent developments in providing PCR polycarbonates. Earlier this year, the company unveiled a polycarbonate boasting 90 percent recycled content. This grade not only attains outstanding whiteness and highly saturated colors but also touts a sustainable feature – a 70 percent reduction in carbon footprint compared to its fossil-based virgin plastic counterpart. Achieving this remarkable accomplishment requires a meticulous selection of high-quality recycled materials and precise optimization of material composition during the compounding process.

Furthermore, Covestro is actively engaged in pioneering the chemical recycling of polycarbonates. Having successfully developed an innovative process within the laboratory, the company is now embarking on the technical implementation of this breakthrough at a pilot scale.

Expansion of polycarbonate production capacity in Asia Pacific

After debottlenecking multiple production lines at the Map Ta Phut site in Thailand, Covestro is nearing the final stages of a program to enhance polycarbonate production capacity and capabilities across the Asia-Pacific region. This program also includes the addition of new production lines at sites in Shanghai and Guangzhou, China, as well as Greater Noida, India, in recent times. The combined additional capacity now exceeds 100,000 metric tons annually. These strategic projects, aimed at optimizing the regional production network, have been supported by using digital tools, which also reduced investment costs.

"In this way, we aim not only to meet the growing demand for polycarbonate in Asia, but also to offer our customers there an improved product quality," says Dr. Nicolas Stoeckel, Head of Operations in the Business Entity Engineering Plastics. "Depending on demand, the upgrades can be used for compounding recycled or conventionally produced polycarbonate." Therefore, both projects are also about improving Covestro´s ability to produce more plastics with higher recycled content.
 

“We provide materials that help to facilitate a more climate-neutral and circular world. The products to be manufactured at our new plant in Shanghai are an excellent illustration of this, as they will assist our customers in meeting the increasing demand for renewable energy solutions,” says Sucheta Govil, Chief Commercial Officer at Covestro. “In doing so, we are supporting the growth of an industry that is vital for preserving our climate. Furthermore, we are promoting sustainability in various industries by supplying materials containing renewable attributes.”

The polyurethane elastomers systems produced in the site can be used for a variety of end products. For offshore windpower, the protection of subsea cables is a core application area. The material is also used in the manufacturing process of photovoltaic panels or in screening medias in the mining industry. In all of the above, it is designed for purpose in close collaboration with customers to withstand even the harshest of conditions thanks to its excellent wear, tear and abrasion resistance.

“We want to support the growth of our customers and partake in the growth of key industries. As we expect the Elastomers market to grow above China’s gross domestic product, we want to enable our customers to capture it. That is what we do with our overall investments into our Elastomer business, and with this investment in our new plant in Shanghai right now,” said Dr. Thomas Braig, Head of the Business Entity Elastomers.

The new plant is the latest addition to the Covestro Integrated Site Shanghai (CISS), Covestro’s single largest production site worldwide. CISS is now home to twelve plants. Since 2001, the company has invested about 3.7 billion Euro into the site as of the end of 2022.

Holly Lei, President of Covestro in China, said, “Our company’s vision of becoming fully circular and our target of being operationally climate neutral by 2035 are perfectly aligned with China’s ambitions to be carbon neutral before 2060. The products we produce in CISS and this addition of polyurethane elastomers systems position us to make meaningful contributions to sustainability efforts in China and in the entire region, for example in the area of renewable energy generation.”

CISS is also among Covestro’s ISCC PLUS (International Sustainability and Carbon Certification) certified sites. This means it is capable of supplying customers with drop-in, mass-balanced materials derived from renewable attributed products, thereby helping customers to reduce their carbon footprint. To make more sustainable products easier to distinguish, Covestro introduced the suffix “CQ”. CQ stands for “Circular Intelligence” and identifies products containing a minimum of 25 percent alternative raw materials.

At the inauguration of the new line, the company also launched its new Desmopan^®UP TPU series. UP stands for “Ultimate Protection”. The series offers high durability, adaptability and aesthetics, protecting automotive surface coatings from harsh environmental conditions. The material can also be used to protect wind blades or screens of smart devices.

“We are convinced that our customers and the TPU market enquire not just materials suppliers, but partners to jointly develop solutions. We at Covestro have the capabilities to be such a partner,” says Dr. Andrea Maier-Richter, Head of TPU at Covestro. “We strive to collaborate with our customers and along the value chain to unlock the potential of Desmopan^®UP and meet the growth ambitions of core industries such as automotive and wind.”

The global PPF market is projected to grow steadily until 2030, with the Asia-Pacific region accounting for the largest share of the overall market. The expected growth in that region in turn is driven in large part by the growth of the chinese market. At the same time, North America and Europe are showing solid growth projections as well.

The high interest in the material stems mostly from increasing attention of vehicle owners to the aesthetic condition of vehicles and particularly their surfaces. TPU is a performance benchmark in PPF for quality, long-term aesthetics and surface integrity. Covestro is one of the biggest international suppliers of TPU resins for PPF production.

"We are really excited to start our new production line and launch the new Desmopan^®UP series to meet the increasing demand for high-performance PPF in the Asia-Pacific region and around the world," says Lisa Ketelsen, Head of TPU in the Asia-Pacific region. "This is a perfect example of how Covestro is committed to providing our customers with innovative, high-performance solutions to meet emerging challenges. In addition to this, we can also further develop our product range together with our customers thanks to our local R&D capabilities."

In PPF, the choice of materials and its formulation play a decisive role. Covestro has put years of research into formulation and advanced manufacturing technologies to build the basis for the Desmopan^®UP-based TPUs for PPF. It provides superior UV durability, excellent hydrolysis and chemical resistance, as well as outstanding optical clarity. This ensures long-lasting performance, weather resistance, and impact resistance. In addition, Desmopan^®UP allows PPF to adapt to the complex designs and surfaces of different vehicles quickly and easily.

"We are very proud of this breakthrough solution as it will enable our customers to achieve their sustainability goals faster. This is especially true for industries such as consumer electronics and audio and networking equipment manufacturers, which have ambitious sustainability goals of their own," said Lily Wang, Global Head of the Engineering Plastics segment at Covestro. "This is another step toward our vision of becoming fully circular, and an important contribution to accelerating the transformation of industries toward a recyclable and carbon-neutral future."

This type of plastic can achieve exceptional whiteness and highly saturated colors, which is typically a challenge for PCR plastics with high recycled content. This is made possible by selecting high-quality recyclates and optimizing the material composition during the compounding process. The PCR grade is manufactured with halogen-free flame retardants that meet performance requirements without increasing environmental impact. It also meets the highest V-0 rating of Underwriters Laboratories' UL 94 flammability standards.

Partnership with Jabra

Covestro's Bayblend^® FR3010 R75 polycarbonate blend is used, for example, in the ear cups of Danish brand Jabra's latest Evolve2 headset series for audio equipment and video conferencing systems. This type is made of 75 percent recycled material and has a 50 percent lower carbon footprint² compared to its conventional fossil-based counterpart, but still meets performance requirements well.

To meet rising demand, Covestro is currently building a dedicated compounding plant for PCR polycarbonates at its integrated site in Shanghai. Once commissioned, which is scheduled for later this year, it will be able to supply more than 25,000 metric tons of high-quality PCR polycarbonates annually.

Climate-neutral¹ solutions through mass balancing

In addition to PCR grades produced through mechanical recycling, Covestro is also making progress with polycarbonates attributed with raw materials produced using a mass balance approach derived from bio waste and residual materials and certified to the internationally recognized ISCC PLUS standard.

The company now regularly supplies Makrolon^® RE polycarbonates with a renewable attributed raw material content of up to 89 percent³. Selected products, including climate-neutral¹ polycarbonates, are supplied with 100 percent renewable electricity under a TÜV-certified system⁴. Already at the end of 2021, Covestro supplied customers in Europe with the world's first climate-neutral¹ polycarbonates. Also the RE series is part of the CQ portfolio of circular solutions at Covestro.

The mass-balanced products demonstrate an identical good quality and performance as fossil-based polycarbonates and offer an out-of-the-box solution for customers with a significantly lower carbon footprint.

^{1 Climate neutral according to a verified life cycle assessment based on ISO standards 14040/14044. Climate neutrality is demonstrated by assessing a partial product life cycle from resource extraction (cradle) to factory gate, also known as cradle-to-gate assessment. The calculation takes into account biogenic carbon sequestration rather than first "life" pollution. It is based on preliminary data from the supply chain and replaces the electricity grid mix with renewable electricity used in the Covestro manufacturing process. No compensation measures were applied. The LCA methodology developed by Covestro AG is scientifically sound and corresponds to the state of the art. ID no. 0000083440: Covestro AG - Certipedia} 

^{2 According to an internal calculation by Covestro based on the TÜV reviewed EcoPAss LCA method (ID No. 0000083440: Covestro AG – Certipedia)}

^{3 According to the newly published ISCC PLUS system document V3.4, oxygen atoms from ambient air that react with ISCC-certified raw materials are counted towards the sustainable fraction. ISCC PLUS (www.iscc-system.org)}

^{4 Certified management system: ID no. 0000084999: Covestro AG – Certipedia}

"With this investment, we are strengthening our Solutions & Specialties segment and are committed to further expanding our growth businesses," says Sucheta Govil, Chief Commercial Officer of Covestro. "At the same time, we are responding to an increasing demand and supporting the expansion of future technologies and industries."

"We want to drive growth in the polycarbonate films business with innovation and a strong customer focus," says Aleta Richards, Global Head of the Specialty Films segment. “In doing so, we aim to intensify our collaboration with customers in the Asia-Pacific region and expand our product portfolio for the circular economy.”

Expanded range of films made from alternative raw materials

Covestro already offers a whole range of more sustainable PC films, for example mass-balanced grades certified to the internationally recognized ISCC PLUS standard. Raw materials for these films are produced using biowaste and residual materials, which are taken into account in the value chain and in production and attributed to the products.

Since 2022, the Map Ta Phut site has also been ISCC PLUS certified, enabling it to manufacture and supply mass-balanced products. Customers can use these products in their established processes and apply them to meet their sustainability goals. In addition, Covestro already offers a range of films made partly with plant-based raw materials or recycled plastics.

Currently, two of its own ships and two additional chartered ships belong to Tailwind Shipping Lines. In addition to the non-food products from and for Lidl, Tailwind offers space on these ships also for interested companies. Covestro uses this now to also become more independent from the busy main routes and shipping companies and to increase the speed and punctuality of its own deliveries.

"Ocean shipments have been severely disrupted since the pandemic began, and the scheduling accuracy of large shipowners has fallen from 70 to 20 percent," says Sucheta Govil, Chief Commercial Officer at Covestro. "To increase our reliability and punctuality, we are therefore actively looking for alternatives. With Tailwind, we have found a partner to navigate the direct route from Asia to Europe with its ships - and who is therefore exactly where it helps us."

Smaller vessels, more flexibility and punctuality

The Tailwind ships have a capacity of around 5,000 "Twenty Foot Equivalent Units", or TEU, per month. TEU is a standard measure for shipping containers. Large ships from the big shipping companies can hold three to five times more. However, those mega ships can also only discharge at large ports and travel rather fixed routes with pre-determined stops, which increases the susceptibility to delays.

"We now determine the route ourselves. And because our ships are smaller, we can also have them sail to and discharge at smaller ports. This gives us a great advantage in terms of flexibility, speed and thus also punctuality," says Wolf Tiedemann, CEO of Sales, Logistics and Central Divisions of Lidl Stiftung & Co. KG. "This allows us to import our own goods reliably from Asia - but at the same time we still have room that we can offer. We are pleased to have found a first interested customer and partner with Covestro and hope to be able to expand the cooperation further and find other interested parties."

A first container of Covestro materials successfully completed the route from the company's largest production site near Shanghai to Europe. Currently Covestro ships a good 8,000 containers a year on that route alone. How many of these will be transported by Tailwind in the future is currently being negotiated.

"Covestro aims to become climate-neutral by 2035 and is systematically converting its production worldwide to renewable energies to achieve this goal," says CEO Dr. Markus Steilemann. “On the way to achieving this, we have reached a new milestone with this agreement. At the same time, we are contributing to the further expansion of the entire market for renewable energies with our investments and our commitment.”

Under the PPA, the Covestro Integrated Site Shanghai will purchase approximately 300 gigawatt hours of green power annually from CGN's wind and solar farms in the town of Lenghu in northwest China's Qinghai province. The agreement will reduce Covestro's carbon emissions in China by around 126,000 metric tons of CO₂ per year. This is equivalent to the emissions of around 60,000 gasoline-powered cars annually. The PPA is scheduled to take effect in January 2023.

"We are delighted to support leading chemical companies like Covestro in converting their production sites to renewable electricity. We look forward to our further cooperation with Covestro, and together we will also contribute to China's dual carbon targets and sustainable development," says Qi Fang, Deputy General Manager of CGN New Energy.

The Shanghai site is already partly supplied by renewable energy. For example, in 2022 alone, it is expected to use more than 300 gigawatt hours of solar power generated in northwest China.

"This new contract is a milestone in the Shanghai site's journey to net-zero emissions. We have increased energy efficiency and significantly reduced emissions over the years, and the use of green power and alternative raw materials will be a key focus as we strive for carbon-neutral production in the next decade," says Holly Lei, President of Covestro China.

Meanwhile, Covestro's Guangzhou and Foshan sites in south China will be powered with 100 percent renewable electricity. Starting next year, both sites will be using power generated from CGN’s offshore wind farms in Guangdong province.

The latest PPAs in China follow purchase agreements Covestro had already signed with energy suppliers in Europe. Under one agreement, utility Ørsted will supply offshore wind energy starting in 2025, which is expected to meet 10 percent of the electricity needs of Covestro's sites in Germany. Under another, ENGIE, Belgium's largest renewable energy producer, will provide onshore wind energy to meet 45 percent of the electricity demand of Covestro's Antwerp production site in Belgium.

PU in wind-blade production is a transformative innovation delivered by Covestro teams around the globe. With better mechanical properties, an efficient production process, and a more cost-effective production solution than conventional fiberglass-reinforced epoxy blades, PU blades are opening a new chapter in the wind blade industry.

Commercial success

Covestro and TMT signed a memorandum of cooperation about a year ago, based on which significant commercialization results have been achieved. PU wind turbines are now being used in commercial wind farms throughout China.

Dr. Binbin Hou, General Manager of Wind Business at TMT, said, "PU wind blades cater to the growing demand for longer wind blade designs. We hope to further collaborate with Covestro to improve the competitiveness of wind energy through continuous technology innovation."

"We are very pleased to reach the important milestone of the launch of the 1000th blade with TMT," said Christine Bryant, Global Head of the Tailored Urethanes Business Entity at Covestro. "We believe that industrial collaboration is fundamental to addressing global warming and energy shortage issues, and it is also an important part of Covestro’s commitment to a circular economy."

TMT produces PU wind blades ranging from 59.5 meters to 94 meters in length with different blade designs and layup structures to meet the growing demand for longer and larger wind blades. The 94-meter wind turbine blade, capable of generating 8 MW of energy, is the largest PU application for Covestro so far. Multiple TMT factories manufacture these blades under different temperatures, humidity, and altitude, proving the wide applicability of PU resin in the manufacturing process.

Dr. Xuebin Feng, R&D Director of Wind Business at TMT, said, "We overcame many technical challenges to accelerate the production process of large polyurethane resin wind blades and achieve mass production."

Further collaboration

In addition to wind turbine development, Covestro and TMT have jointly developed PU railway sleepers, which are more durable and cost-effective in maintenance than traditional wood and concrete sleepers. Covestro, an integrated PU solution provider, will cooperate with TMT to provide various PU resins, coatings, and PU machinery solutions.

“We believe in the growth of the cast elastomers market and want to meet the increasing demand. With this new production plant, we achieve a significant improvement of our global infrastructure and strengthen our presence for high-performance elastomers in the Asia-Pacific region,” says Sucheta Govil, Chief Commercial Officer at Covestro. “This investment also allows us to better serve our customers, improve our customer service and it supports the growth of applications and industries with high-end performance requirements.”

“The start up of our Map Ta Phut plant is the latest step of several investments in our Elastomers business to support the Vulkollan^® brand,” explains Thomas Braig, Head of the Business Entity Elastomers. “We firmly believe in the strong potential of this historic and well-known brand and are prepared, with this investment, for its future growth and the development of its customers.”

“Our Map Ta Phut site in Thailand has been well prepared to grow and is now proud and ready to contribute to the Elastomers business while supporting Covestro's overall strategy to strengthen its Solutions & Specialties segment," added Dr. Timo Slawinski, Site Manager Map Ta Phut.

The new plant in Thailand now employs more than 25 people. The elastomers produced from the raw material are suitable for a diverse range of applications: from forklift wheels, roller coaster wheels to couplings and seals for the engineering industry, among many others. The product is one of the most powerful elastomers on the market. Its superior durability, stability and thereby lowered maintenance requirements are among the key features of the material and make it a material of choice for ever more customers and applications.

According to a memorandum of understanding (MoU) signed at Covestro’s booth at the China International Import Expo, the company will work with customers like Sherwin-Williams and Changzhou Changtu Chemical Co. Ltd, logistics solution and infrastructure partners such as Sinotrans Chemical International Logistics and Harbour New Energy Technology Shenzhen, as well as industry organizations such as Smart Freight Center China to devise new green logistics solutions to further reduce greenhouse gas (GHG) emissions across the industry ecosystem.

Truck transport in focus

In the Asia-Pacific region, around 70 percent of Covestro's goods are transported by truck, while in Europe and North America only around one-third is transported by road in each case, with inland waterways and railroads otherwise being used more frequently.

As such, the new partnership will focus on designing more sustainable means of road transportation by truck, and evaluate the viability of certain solutions under specific scenarios.

This includes the experiment of using electric trucks, which are prohibited for the road transport of dangerous goods under Chinese and European laws, for the short-distance shuttling of non-dangerous chemicals – free of limitations regarding the range. The team is also trying biodiesel, whose prices are subsidized in Shanghai, in long-haul transport of dangerous goods. Other solutions the program is looking at include hydrogen fuel cell-powered trucks. Some of the experiments will be adopted in real cases with cost and benefit estimation in the first half of 2023 under the partnership.

"The idea is to pilot, adopt and scale up low-emission fuels, vehicles and more sustainable logistics solutions with optimal costs and even financial benefits through an open platform," says Samir Hifri, Senior Vice President, Supply Chain & Logistics Asia Pacific, Covestro. "We believe the supply chain could be an essential part for the chemical industry to achieve climate neutrality, and it’s crucial for us to find a balance between economics and emission reductions through such collaboration."

Under the partnership, efforts will also be made to standardize calculations and reporting of GHG emissions. Through these efforts, Covestro and its partners hope to create a transparent and reliable certification mechanism that promotes green logistics as a widely applicable business model in the industry.

Jason You, Senior Supply Chain Director of Sherwin-Williams Asia, said: "Sherwin-Williams is committed to satisfying customer needs through quality products, excellent service and a highly trained and professional workforce and is constantly seeking ways to become more sustainable. We are excited to work with Covestro and other leading partners on this challenge. We look forward to continuing to innovate and introduce more sustainably advantaged product solutions to our customers in China and across the globe."

Key to scope 3 emissions target

Earlier this year, Covestro announced that it is aiming to become operationally climate neutral – this includes reducing both direct emissions from its own operations (scope 1) as well as indirect emissions from purchased energy (scope 2) to net zero – by 2035. The company will be reporting its scope 3 emissions target next year.

"The MoU marks an essential step in Covestro’s planned announcement of the scope 3 emission target in 2023," says Zhong Xiaobin, Senior Vice President of the Coatings and Adhesives segment of Covestro in Asia Pacific. "We expect to provide an integrated offering that combines more sustainable products and logistics services, thus supporting our customers to meet their sustainability and climate-neutrality targets and moving towards a circular economy."

The largest import themed expo in the world, the CIIE gathers a myriad of companies from across industries every year. This is Covestro’s second appearance following its debut in 2021.

"The world is increasingly facing enormous challenges. It is in our hands to meet them and set the course for a green, smart and safe future. Many ideas, concepts and technologies are there, they now need to be realized with determination," says Dr. Markus Steilemann, CEO of Covestro. "At CIIE, we want to raise awareness for building a circular economy and for climate neutrality by presenting particularly innovative and sustainable material solutions. At the same time, we want to strengthen relationships with our partners in China and around the world."

A leading example of Covestro’s successful partnerships comes from Hong Kong-based Sinomax, a manufacturer of polyurethane-based comfort products, which will make the global debut of its first low-carbon mattress at the Covestro booth.

"We are honored to stage the world debut of our new low-carbon sleep system products together with Covestro at the CIIE," says Sinomax President Eric Cheung. "This marks a major step towards sustainable development at Sinomax Group, amid growing market demand for low-carbon products in China and around the globe. We look forward to further cooperating with Covestro on a global scale for more sustainable products."

The mattress uses bio-attributed mass-balanced TDI (toluylene diisocyanate), a key component for the production of flexible foams, purchased from Covestro. This can reduce CO₂ equivalent emissions by about 10 kilograms for a single mattress.

Materials with lower carbon footprint

Covestro offers renewable TDI, among other materials, using the mass-balanced method, under which alternative raw materials are allocated to the products as certified by ISCC PLUS. They uphold the same high quality as their fossil-based counterparts without customers having to change their processing operations, while enabling them to reduce CO₂ emissions.

Other solutions featuring the mass-balanced method at CIIE include low-carbon coatings applied to the wood structure on Covestro’s booth. The coatings, made by Chinese company Baichuan, are based on the Desmodur^® CQ hardener from Covestro. The hardener contains more than 30 percent of biomass according to ISCC PLUS and reduces CO₂ emissions by more than 20 percent from cradle to Covestro’s factory gate.

"We believe mass-balanced solutions, among other low-carbon materials, are crucial to support the sustainable development and climate-neutral future of various industries and society. But to broaden this impact, we rely on the strength of more partnerships, and that’s why we are here at the CIIE," says Covestro China President Holly Lei.

In another example, Covestro and Chinese premium smart EV brand HiPhi are deepening their partnership to create next-generation solutions to make mobility smarter and greener. Under a new agreement to be inked during the CIIE, an array of Covestro’s CO₂-reduced polycarbonates, coating and adhesive solutions are expected to be applied in HiPhi’s future models, enabling new functions while reducing their carbon footprint.

Broad portfolio to promote circular economy

Covestro will showcase its cutting-edge materials, solutions, technologies and collaborative ties at several exhibition areas: Future Mobility, Clean Energy, Green Building and Sustainable Living, on top of a Branding & Culture corner designed to improve visitor engagement.

"We look forward to further advancing our sustainable development agenda in China through advocacy and collaboration with our customers, partners and other key stakeholders here," Lei adds.

To learn more about Covestro’s solutions for a climate-neutral future at the CIIE, visit its booth, 3C3-01, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2022.

¹ Renewable TDI is produced using the mass balance approach using renewable feedstocks – from virgin biomass as well as biowaste and residuals – which are mathematically assigned to the product.

Polyurethane is an important thermal insulation material for refrigerators and cooling devices. Covestro is currently providing customers in the appliance industry with two-component polyurethane as a system solution that combines formulated polyether polyols (PET) and isocyanates (MDI).

Recent market analysis shows that most regional appliance customers now tend to buy the two components PET and MDI separately. Based on the changing needs of the appliance industry, the company has decided to exit the PET portion of the business in Asia Pacific (except Japan) by the end of 2022. The company’s approach towards appliance industry in Asia Pacific will not affect the business in Europe and North America.

The appliance industry will continue to remain a key segment for Covestro’s business in Asia Pacific. Following the portfolio optimization, Covestro, as a reliable supplier, will continue to sell the MDI component to the appliance industry in China, India and ASEAN.

Globally, Covestro continues to stay committed to other customer segments in polyurethanes with its system solution approach. In Asia Pacific specifically, Covestro will continue to focus on customer needs in the polyurethane system applications in automobiles, wind blades, pultrusion and reefer containers where tailored solutions and system supply are still valued by customers.

"We are very pleased that Map Ta Phut is another major Covestro production site to be certified according to ISCC PLUS," says Timo Slawinski, Managing Director and Head of the site. "With this, we are continuing to drive forward the replacement of fossil raw materials with alternative precursors." The company received its first shipment of the mass-balanced raw materials phenol and acetone from an Asian supplier in August, producing its first batch of biocircular ISCC PLUS-certified polycarbonate in Map Ta Phut very recently.

The certificate enables Covestro to supply a wide range of mass-balanced products such as Makrolon^® RE plastics and Makrofol^® films at the cross-segment site, which have a significantly lower carbon footprint than fossil-based products. The first-mentioned plastics are part of the CQ family of circular intelligent solutions from Covestro. With the new CQ concept, the company is highlighting the alternative raw material base in its products, giving a clear indication to customers looking for such products.

In the mass balance approach, for example, bio-based or recycled raw materials are fed in at an early stage of raw material extraction and mathematically assigned to the finished products. This saves fossil raw materials and reduces CO₂ emissions, while the quality of the mass-balanced products remains identical compared to purely fossil-based ones. With the drop-in solution, customers can continue to use their proven formulations, equipment, processes and specifications. At the same time, Covestro supports them in meeting their sustainability goals.

In addition to Map Ta Phut, Covestro's sites in Shanghai, Changhua, Leverkusen, Dormagen, Krefeld-Uerdingen, Antwerp and Filago have already been certified to the ISCC PLUS standard.

The line, which represents an investment of more than EUR 27 million, will be capable of delivering more than 25,000 tons of high-quality polycarbonates and blends containing mechanically recycled content annually when it is planned to be commissioned in 2023. Overall, the company aims to be capable to deliver more than 60,000 tons of polycarbonates with recycled content in Asia Pacific per year until 2026.

"The MCR production line is another exciting step we have taken to fulfill our commitment toward a circular economy and achieve our goal to become operational climate neutral by 2035," said Sucheta Govil, Chief Commercial Officer of Covestro. "Recycling plastic waste is absolutely essential to the circular economy, and addresses one of the major global challenges we face together as a society. We will continue to invest in expanding and improving our capacity for recycled plastics, and leading the industry to create materials with higher recycled content." 

"To meet the rapid growth in demand for more sustainable and circular solutions from our downstream customers, we will continue to invest in expanding our capabilities," said Lily Wang, Head of Covestro’s Engineering Plastics segment, at the groundbreaking event. "This MCR production line is the latest example of our efforts in this regard and signals our commitment to driving the transition to more sustainable products in this region, especially in China."

Repurposing a compounding facility in Thailand for the ASEAN market

Covestro will also be repurposing an existing compounding line at its Map Ta Phut site in Thailand to a plant for mechanical recycling. The conversion of the plant is scheduled to be accomplished by the end of 2022 and continue to pave the way and meet market demand for polycarbonates from post-consumer recycled (PCR) content across multiple industries in the ASEAN region. Based on the current forecast, the unit will supply up to 10 percent PCR based product of its annual production volume by 2030.

Dr. Nicolas Stoeckel, Head of Operations in the Engineering Plastics segment, said: "The new developments in China and Thailand are not only about investing in capacity increase, but also about improving our capability to produce more products with higher recycled content and more consistent quality. These developments will further strengthen Asia’s reputation as the world’s leading producer of polycarbonate PCR grades."

The two facilities in Shanghai and Map Ta Phut will boost Covestro’s output of PCR polycarbonates Makrolon^® R and Bayblend^® R, which contain up to 75 percent recycled content and can contribute to a carbon footprint reduction of up to 50 percent while meeting performance and eco-labels’ requirements.

Dr. Timo Slawinski, Managing Director of Covestro (Thailand) said, “Covestro’s mission is to promote innovation and growth with profitable products and technologies that benefit society while reducing the impact on the environment. We would like to pass over value and sustainability to our future generation, therefore, we make every effort to align our vision on the direction of circular economy. By creating new ideas and innovations that benefits to reserving and making most use of the natural resources that is being scarce, bringing them back to the loop, reducing impact from plastic wastes and promoting reduction of greenhouse gas emission throughout the value chain.

In March, Covestro announced our 2035 Climate Neutrality Target, therefore, our campaign, “Hands for a Brighter World” shares a common vision and goal with the “Bangkok Magic Hands” project. This initiative comprises two of Covestro’s core values together: commitment to safety and sustainability, enabling us to turn waste into value. The results are road sweeper personal safety devices – high-visibility suits made from recycled plastic bottles - for the BMA and the Map Ta Phut Municipality.”

Ms. Khawissara Wattanapisit, Head of Communication ASEAN Covestro (Thailand), said, “The Hands for a Brighter World project is one of the latest social activities to reiterate Covestro vision for sustainable business operations under the circular economy concept to protect our limited resources. We are committed to minimizing our carbon footprint seriously to reduce the impact on climate change which, in turn, creates opportunities for future generations in the long term. This project is an outstanding example of collaboration among multiple stakeholders who are aware of the problems and working together to reduce the plastic waste problem. This collaboration not only promotes sustainability at the community level but also contributes to national and global levels. To achieve our common targets, one hand or party cannot succeed on its own, but collaboration is needed – this is where the project name stems from."

Mr. Wirat Manassanitwong, Director of the Department of Environment, BMA, revealed, “The BMA top environmental policy is to achieve Net Zero greenhouse emissions and this is well supported by the private sector, hence the creation of this network. The BMA currently encourages the private sector to collaborate on 4 types of activities: renewable energy, green zone expansion by tree planting, waste reduction & management, and traffic management. Recently we organized Earth Hour in March as 1 of 190 countries around the world to switch to electricity at night to raise awareness of energy conservation. We are also campaigning waste pollution prevention with 17 districts on the Chao Phraya river, aiming to reduce littering in the river, and have so far held activities in 3 districts.

At present, a number of corporations have volunteered to plant trees in BMA public areas or requested the BMA to arrange for areas in support of the BMA Governor's 1 Million Tree Planting Policy. The "Bangkok Magic Hands" project" is a collaboration of several parties with the BMA acting as the middleman in arranging for locations where donors can contribute. We are pleased that Covestro offer plastic waste sorting stations that are attractive and interesting to the public which helps promote actual waste sorting from all. We plan to use some of the collected PET bottles, upcycle them into PPE, and if they are can achieve existing safety standards and comfort requirements, then we will offer them to our road sweepers."

Covestro is among the leading global polymers manufacturers with a vision to create a better world by driving a circular economy and optimizing the utilization of resources. We produce plastics sustainably, drawing on the benefits of alternative raw materials and renewable energies. To realize our vision we are committed to reducing plastic wastes and airborne emissions, as well as improving waste management. Moreover, we strive to innovate new technologies to recycle discarded products and materials and turn them into raw materials once again.

Covestro in Thailand is committed to raising environmental protection awareness among the youth through the regular organization of educational activities and the publication of educational materials. This includes the booklet series titled "Bright Minds for a Brighter World" for primary schools in Thailand to educate the importance of waste sorting under the circular economy concept. We also organize workshops for teachers on environmental management both in Bangkok and Rayong.

In this project, Covestro, one of 13 awardees, will support 100,000 low-income people in Vietnam, Lao People Democratic Republic and Cambodia to enhance their income though the use of Covestro polycarbonate solar dryer domes in the post-harvest processes. Key interventions are holistic:  partial seeding fund for communities for solar dryer dome construction, training for farmers in food processing and handling, finally linking smallholder production with value-added food markets. By reducing post-harvest losses and improving added-value into agro-products, the project will foster benefit sharing for farmers.  The goal is to contribute to the transformation of smallholder farms from subsistence operations into profitable, commercially oriented businesses as well as strengthening their links to growing food markets. 

In May 2022, Covestro Inclusive Business Development Manager Mai Pham Phuong (Ms.)  participated in the first Bootcamp in Bangkok, together with the other South and South East Asia grantees from the two cohorts, the hub team and USAID Secretariat, gathering as a tight-knit group to share ideas, engage in value-based discussions and build new skills to create lasting change. The three-day Bootcamp include ‘unconferenced’ session exploring how to impact more farmers, improve operation and access investment, and included an interactive session on investment readiness, KPIs, gender equality and sustainability. All participants shared and promoted innovative techniques to increase their visibility and meet other grantees sharing the same vision and like-minded in the region. The last day was for exploring partnerships that can catalyze investment, increase impact for smallholder farmers and improve access to climate – resilient innovations.

During the Bootcamp, Covestro also shared the Inclusive Business mission and our way to realize toward the People, Planet, Profit value.  B Veeralakshmanan, Head – IB India and SEA is proud of the achievement.  “Winning this important grant testifies to how the cooperation between sustainability stakeholders can benefit the underserved community.  Our key to success in reaching our sustainable social transformation goals is the alignment we strive for between organizations in benefiting the people and planet.  Inclusive Business is well on track to keep our date with 2025 on impacting 10 million underserved people.”

Among the rich talent seen across the winners, it was heartening to see many Indian grantees, including our partner S4S Technologies.  We are thus able to step up our visibility and credibility in this domain, as well as seek out new partners on our onward journey of expansion in width and depth.  In the coming months, India and Vietnam will be working closely to successfully implement the project with WE4F and expect to increase our handprint in new arenas of under-represented farmer communities.  We are indeed 1 for the good of the people!

Diversity and Inclusion Empowered by Science 
 

Diversity, Equity, Inclusion (DEI) are essential elements in the Covestro culture, and form the concept from which the “Covestro MagicMaterial School” originated. The concept helps to protect the science-related human rights of hearing-impaired students whose schools face a great shortage of scientific teaching resources. Additionally, the various different inclusion activities are designed to allow young children and adults from different populations to have fun and play with science, while intangibly learning how to know and respect each other’s differences, as well as how to understand the infinite potential every person has.

 “I’m really so grateful for the effort and encouragement by Covestro over the years,” said Fang-duo Lee, a student at the Taipei School For The Hearing Impaired, who was also a three-time science theater play actress and one-time science teacher’s assistant for the Covestro MagicMaterial School. “I didn’t use to be very confident when I studied in a regular elementary school. Over these past years, the stage provided by Covestro not only allowed me to prove my talent in front of hearing students with ease, but also allowed other children without hearing impairments to discover that the capabilities of hearing-impaired students can exceed their imagination. Due to these opportunities, I can also socialize with hearing students comfortably and confidently now!”

Tung-liang Chen, who was the lead actor of the first-ever science play with complete hearing loss at MagicMaterial School, was admitted into a the science and engineering department at the National United University after his graduation from the hearing-impaired school. This also wrote a new chapter in the school’s history. Chen indicates, “As long as we can equally receive scientific education resources, children with hearing loss or no hearing can also shine in the field of science and engineering. I want to thank Covestro, which not only made me more confident in science and myself, but also helped me to feel comfortable when studing and living with hearing peers at university.  Every hearing-impaired child has infinite potential!”

“We are pleased to see our ESG, Sustainability and DEI initiatives in Taiwan be recognized by Gartner,” said Matthias Poth, Global Head of Corporate Communications & Public Relations of Covestro. “We firmly believe that chemical reactions exist not only in science, but can also change the minds of people, as long as we can find fun ways to involve children to see with their own eyes that the capabilities demonstrated by different groups of people can go beyond their imagination. And then we’ll have a chance to make an postive impact on their values and attitudes throughout their entire lives, and on the future of society.”

2022 Gartner Communications Award nominees and winners list:

https://www.gartner.com/en/about/awards/marketing-and-communications-awards#:~:text=Since%202011%2C%20the%20Gartner%20Communications%20Awards%20has%20been,achieved%20real%2C%20measurable%20business%20outcomes%20in%20their%20organizations

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"These projects will contribute to the high-quality and sustainable development in China and beyond," said Holly Lei, President of Covestro China. "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."

A leading supplier for sustainable solutions

The new plant for PUDs, as well as a further line for polyester resins, from which PUDs are produced, are due to be completed in 2024. PUDs are used in more environmentally compatible coatings and adhesives for a wide range of applications, including automotive, construction, furniture, footwear and packaging. For instance, Covestro’s Bayhydrol^® and Bayhytherm^® raw materials are used in basecoats for automotive OEM and refinish coatings, as well as in wood and furniture coatings and robust floor coatings, while adhesives formulated with Dispercoll^® U are used in furniture and shoe manufacturing as well as in the automotive industry. Independent of the investment of Covestro in Shanghai, its large portfolio of waterborne polyurethane coating raw materials based on PUDs for various applications also includes products of the Baybond^®, Impranil^®, NeoPac^® and NeoRez^® series. 

"With the 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 Xiaobin, Senior Vice President of the Coatings and Adhesives segment of Covestro in the Asia Pacific region. "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."

High performance elastomers to drive sustainable growth

The new facility for polyurethane elastomers, which are widely used in industries ranging from offshore wind to solar energy as well as material handling, is expected to become operational already in 2023. The market for these flexible and durable materials in China and the Asia-Pacific region is growing faster than both gross domestic product and downstream industries.

"The new facility for polyurethane elastomers will ensure that we have a strong capacity to meet the needs of our customers," said Simon Chen, Head of Covestro’s Elastomers segment in Asia Pacific. "Our Desmodur^® based polyurethane elastomers will serve a wider range of applications as they boast excellent performance, particularly in the field of sustainable energy."

Since 2001, Covestro has invested EUR 3.6 billion into building the Shanghai integrated site, which comprises 11 plants and is the company’s largest site in the world. In the past year, the Shanghai site obtained the ISCC PLUS mass balance certification, meaning it can supply customers with larger product volumes from renewably attributed raw materials.

JFC, which has a long history as a joint venture between European and Japanese companies, is one of the leading suppliers of optical fiber coatings. The Tsukuba plant focuses on the manufacturing of UV-curable resins supporting the optical fiber market through safe and stable operations. This year JCIA awarded the Tsukuba plant with the ‘Safety Award Grand Prize’ in recognition of its excellent safety track record of more than 20 years without a recordable incident since the start of its operations as a result of integrating and nurturing a European-Japanese culture of safety.

"We have steadily carried out in-depth safety activities such as safety morning meetings and on-the-job training based on Japanese safety culture to pass on and to deepen our knowledge, skills and culture on safety. On top of that, we succeeded in integrating European-Japanese safety cultures by introducing global safety tools such as the ‘Safe Start Program’ , which analyzes mental conditions in the event of an accident and near miss," explains Takahiko Kurosawa, site manager of the Tsukuba plant. "In terms of equipment, we are implementing safety upgrades including the introduction of safety instrumented systems (SIS), which takes automated action in case of abnormalities, and a bar code system to prevent the erroneous handling of raw materials. We are very honored that our daily efforts have resulted in achieving more than 20 years without a recordable incident, and that our efforts have been recognized with this award."

JCIA is the leading association representing the chemical  industry in Japan, which includes approx. 4,700 chemical sites. The Safety award is a practice to award business establishments which engage in outstanding safety activities that promote security, safety, and health in the chemical industry on their own initiative serving as a golden standard for others. The safety award has a history of nearly half a century since its inception in 1977. Award-winners in the past included leading Japanese chemical companies, but this is the first time that a foreign-affiliated company receives the ‘Safety Award Grand Prize’.

"We are very honored that this is the second award for the Covestro Group after the ‘Safety Award Special Prize’ for the Niihama Plant of Sumika Covestro Urethane Co.,Ltd. in 2017. Covestro’s global motto towards safety, ‘Nothing we do is worth getting hurt for’ clearly shows that safety is the highest priority. We will engage in continued operational safety based on our current corporate safety culture," explains Kimiyasu Yonemaru, President of Covestro Japan.

For Covestro, offering renewable TDI via mass balance is only a logical next step of making this important chemical raw material even more sustainable, as Dr. Klaus Schäfer, Chief Technology Officer of Covestro, explains: "Already years ago, our unique gas phase technology was a milestone towards more energy efficiency in the production of TDI. After that we committed ourselves to ensure a further reduction in emissions from our production by switching to green electricity. This additional improvement now makes it clear how consistently we are pursuing our path to climate-neutral production³ and the circular economy: By using mass-balanced renewable raw materials, we are now also striving to significantly reduce our indirect emissions in the supply chain and to offer products with a reduced carbon footprint."

"With our shift to mass-balanced products, we are helping customers in various industries achieve their climate targets and drive the transition to a circular economy," says Sucheta Govil, Chief Commercial Officer of Covestro. "At the same time, we are strengthening the use of alternative raw materials and reducing CO₂ emissions along various value chains." Customers can use this TDI as a drop-in solution, meaning it can be implemented rapidly and easily in existing production processes without the need for technical modification.

Flexible PU foams made with TDI and long-chain polyols are important materials in the manufacture of seat cushions and mattresses. Renewable TDI meets demands for more sustainable production while ensuring the good quality, optimal comfort and high breathability known from fossil-based TDI. It also meets the expectations of the automotive industry, which is looking for alternative raw materials for car seat cushions with a lower carbon footprint.

Sinomax as pioneer for more sustainability

Only late last year, Covestro signed its first commercial supply contract with Sinomax, a global manufacturer and distributor of polyurethane comfort products based in China. Both companies share a clear commitment toward the circular economy, and Sinomax wants to be the first customer to use the new TDI to reduce its CO₂ emissions. The mass-balanced TDI required for this is supplied by the ISCC PLUS-certified Shanghai site of Covestro. Thanks to its global presence, the company can also supply larger amounts of mass-balanced TDI.

In this mass balance approach, raw materials derived from biomass or waste are fed in at an early stage of raw material extraction and mathematically attributed to the finished products. This saves fossil raw materials and reduces greenhouse gas emissions, while the quality of the mass-balanced products remains the same compared to purely fossil-based ones. Manufacturers can continue to use their proven formulations, equipment and processes, meanwhile gradually transforming their product portfolio towards a more sustainable one and achieving their climate targets.

_{¹ The renewable TDI is produced with the help of the mass balance approach using renewable raw materials - from virgin biomass and bio waste and residues - which are mathematically attributed to the product.}

_{² According to an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (of Covestro), also known as cradle-to-gate assessment. The methodology of our LCA is based on the ISO 14040 and 14044 standards. The calculation takes into account the biological origin of the carbon based on preliminary data from the supply chain. No compensation measures were applied.}

_{³ The term “climate-neutral production” refers to the Covestro target of reducing scope 1 and scope 2 emissions to zero by 2035.}

"This is good news for anyone who wants to maintain an athletically active, healthy lifestyle in the most environmentally friendly way possible," says Tony Wu, Global Marketing Manager, Textile Coatings, Covestro. He emphasizes that the increased sustainability achieved does not compromise the durability, appearance or comfort of the footwear upper. In combination with Huafeng HAPTIC® printing technology, 3D shapes can be applied to textile fabrics creating trendy designs and high performance in athletic footwear. 
 

Impranil® eco DLS, as a partially bio-based binder, is part of the INSQIN® range of waterborne textile coating resins. Its use contributes to reduced greenhouse gas emissions with around 60 grams of CO₂ equivalents per pair of shoes. The value comes from internal calculations verified by independent external experts. It is obvious that the difference in the CO₂ footprint becomes even greater when solvent-based PU textile coatings are used for comparison. The use of fabric based on recycled PET yarns mitigates greenhouse gas emissions by about 170 grams of CO₂ equivalent per pair of shoes.

To share the experience and findings with the industry, Covestro, Huafeng and Cyclone jointly hosted a webinar globally to introduce the three technologies and the synergy created from this co-development. The recorded webinar can be accessed here.

"Sustainability is key to our market success at Huafeng. With the help of the partially bio-based PU dispersion of Covestro, we were able to introduce more renewable ingredients into our HAPTIC® coatings, further improving their sustainability," says Dr. Thomas Schmidt, Director of Innovation at Huafeng. Dr. Torsten Pohl, Head of Global Textile Coatings at Covestro, adds, "The combination of our partially bio-based INSQIN® PU coating binder with Huafeng HAPTIC® printing on recycled PET fabric shows how partners in the value chain can work together creating more sustainable products."