Emerging cockpit concepts include seats capable of sensing occupant body shape and adapting posture settings for enhanced comfort, as well as interior surfaces that can interpret touch inputs and deliver precise haptic feedback. Yet delivering these functions across increasingly complex three-dimensional designs remains a challenge, as conventional rigid materials and hard circuits often lack the flexibility, durability and integration capability required.

Under the MoU, Covestro will lead the R&D and industrialization of relevant thermoplastic polyurethane (TPU) film substrates. With outstanding flexibility, durability, processing versatility, ink adhesion and long-term stability, TPU films are a critical substrate for ultra-flexible printed electronics systems. This complements Genofort’s expertise in the development and industrialization of haptic interaction assembly systems, creating a fully integrated value chain.

The collaboration will focus on key automotive interior applications including center consoles, steering wheels, door panels, seats and headliners, with the ambition of integrating body-shape sensing, adaptive comfort, thermal regulation, health monitoring and responsive touch interaction into unified solutions that enhance both occupant comfort and cabin intelligence.

The two companies also plan to jointly support the development of relevant industry standards, helping accelerate commercialization and broader adoption of ultra-flexible haptic technologies across the automotive sector.

“The next generation of intelligent cockpits places entirely new demands on interior materials. They must not only conform to complex surfaces, but also enable sensing and interaction functions,” said Weihong Du, Head of Marketing and Development Asia-Pacific, Specialty Films, Covestro. “Through our collaboration with Genofort, we aim to bring material innovation and system integration closely together, helping advance flexible haptic interaction technology from the laboratory to large-scale production and delivering differentiated solutions for automotive customers.”

“Ultra-flexible haptic interaction systems represent a critical direction for the intelligent transformation of automotive interiors,” said Lingyao Lu, Chairman of Genofort. “Covestro’s leadership in high-performance film materials forms a powerful complement to our proprietary system integration technology. This collaboration will accelerate the global adoption of ultra-flexible printed electronics, enable us to enter the global premium supply chain, and together open new frontiers in this arena.”

Secure document personalization—the process of embedding personal information into secure identity documents such as passports, national identity cards and driver’s licenses—requires precise alignment between material performance and equipment.

Under their agreement, Covestro will leverage its deep technical expertise in polycarbonate films and specialty functional materials, while EMPTECH brings extensive experience in system integration and ID document equipment, engineering and supply. Together, the partners will address the growing technical demands of this sector.

“Demand for high-security documents in emerging markets is rising rapidly, alongside increasing expectations for innovative and adaptable solutions, as well as reliable deployment,” said Dr. Caroline Wolff, Head of Specialty Films Asia-Pacific at Covestro. “By combining our complementary strengths in technology, materials and innovation, we are well positioned to deliver proven, effective solutions to this very dynamic market and to provide even higher value to our customers.”

“Material performance plays a critical role in determining the security of document products,” said Sean Zheng, CEO of EMPTECH. “Through this partnership with Covestro, we are strengthening our technical capabilities and overall competitiveness in emerging market projects.”

“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.

“This recognition reflects our unwavering commitment to our people at a time of change and transformation,” said Holly Lei, President of Covestro China. “We continue to invest in creating an environment where our employees can thrive, innovate, and contribute to making the world a brighter place.”

The Top Employers Institute, a global authority in HR certification, benchmarking and advisory services, certifies organizations based on the results of its comprehensive HR Best Practices Survey. In the latest assessment, Covestro excelled in areas including work environment, wellbeing, diversity, equity and inclusion, as well as digital HR. The following examples highlight selected key HR practices that contributed to this recognition:

• Employee reward and recognition initiative: Launched in 2020, Covestro China’s Five-Star Employee and Team Awards recognize individuals and teams who exemplify the company’s core cultural behaviors. By 2025, more than 40 employees and about 80 teams had been honored, with their stories shared across internal channels to reinforce values-driven behaviors and boost morale.
• Personalized learning and development: Introduced in 2025, the C-Pro program connects employees with internal experts through informal one-on-one exchanges to support employees’ personal growth and strengthen the self-driven learning culture. Supported by an AI-powered matching assistant, the pilot engaged over 300 employees within six months and achieved an exceptional net promoter score of 98.
• AI-powered HR support: Covestro’s intelligent HR assistant, built on the company’s Covestro Virtual Assistant platform, provides employees with instant 24/7 access to HR solutions, process guidance and personalized career coaching—all through natural language conversations. For example, by simulating realistic workplace scenarios, this AI assistant enables employees to practice and prepare for challenging discussions with managers or colleagues. Such comprehensive support empowers employees to efficiently manage their HR needs and advance their careers, setting a new standard for workplace support.

Beyond China, Covestro was also recognized as a Top Employer for 2026 in Germany and the U.S., demonstrating the company’s global commitment to HR excellence.

"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.

“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.

"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}

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.

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 innovative low-carbon running shoe is produced using Covestro’s ISCC PLUS certified Desmodur^® CQ MDI and TDI – both key polyurethane precursors – and Desmopan^® CQ thermoplastic polyurethane (TPU). Compared to products using traditional fossil-based raw materials, each concept running shoe can reduce carbon emissions by more than 80 percent. The running shoe concept will be mass-produced and launched in 2023, and Xtep is further planning to apply Covestro mass-balanced materials to additional categories and products in 2024.

In the mass balance approach, raw materials derived from biomass or biogenic wastes or residues are introduced at an early stage of raw material extraction and mathematically attributed to the finished products. This process reduces the use of fossil-based raw materials, thereby reducing greenhouse gas emissions.

John Dou, Vice President of MDI sales for Asia Pacific at Covestro’s Performance Materials segment, said: “Mass-balanced polyurethane materials such as MDI, TDI, and TPU offer broad prospects for application. Covestro is committed to working with partners across all parts of the industry chain to explore applications in various fields and scenarios, while actively providing customers with low-carbon solutions that create value and promote the sustainable development of the industry.”

Edwin Wu, Head of Sales and Market Development of Covestro’s Thermoplastic Polyurethanes segment in Greater China, said: “The successful development of Xtep’s low-carbon running shoe demonstrates the excellent performance of mass-balanced Desmopan^® CQ TPU products when it comes to multifilament mesh fabrics, shoe uppers, midsoles, and supporting pieces. Covestro looks forward to working with more value chain partners to develop more sustainable TPU solutions.”

As one of the primary sports brand sponsors of marathon events in China, Xtep is dedicated to operating at “China Speed” in terms of its environmental protection strategy. Its low-carbon concept running shoes are lighter, more wear-resistant, and more breathable than competitors therefore ensuring comfort and performance, thanks to the use of Covestro’s ISCC PLUS verified TPU in the upper and midsole structure. This material application helps Xtep create its very first low-carbon marathon shoes and achieve goals towards sustainability.

“I am incredibly pleased to see that Xtep is working with Covestro and Silan to explore the field of low-carbon, and high-performance materials, which is consistent with the sustainable development goals of all parties involved,” said Tian Zhong, CEO of Xtep brand. “Xtep will continue to work on solutions that promote its carbon neutral ambitions and address consumers’ rising environmental awareness. The signing of this project agreement highlights our expectations for a brighter and more sustainable future.”

“Silan is proud to join hands with Covestro and Xtep Group to explore the innovative development and application of mass-balanced materials in the field of sports shoes,” said Ding Zongyin, Chairman of Silan Group. “This agreement has further deepened our 20-year strategic partnership with Covestro, and is significant in both promoting the development of a circular economy and achieving China’s carbon neutral ambitions.”

With the theme of “Together for a climate-neutral future”, Covestro’s exhibition at CIIE 2022 will demonstrate the company’s leadership in the circular economy through its advanced materials, solutions, technologies, and partnerships, as well as its commitment to promoting sustainability across multiple key industries.

The unveiling of the EcoFoam mattress at Covestro’s booth during the fifth China International Import Expo (CIIE) builds on a deal reached late last year, when Covestro signed its first commercial contract for supplying mass-balanced TDI to Hong Kong-based Sinomax.

“We are honored to stage the world debut of our new low-carbon sleep system products together with Covestro at the CIIE,” said 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 cooperation with Covestro on a global scale for more sustainable products.”

TDI is a key building block of flexible polyurethane foams, which are widely used in the furniture, automotive, and shoe industries. It can also be used in the production of polyurethane coatings and adhesives.

Under the mass balance method, bio-based or recycled raw materials are fed in at an early stage of extraction and mathematically assigned to the purchasers of downstream products. Mass-balanced products are in the same good quality as their fossil-based counterparts, and they can help customers reduce CO₂ emissions without the need to change their production procedures.

Covestro’s mass-balanced bio-attributed TDI can reduce the carbon footprint by 36 percent. For Sinomax, it means a reduction of about 10 kilograms of CO₂ equivalent emissions for a single EcoFoam mattress, without compromise to breathability, hardness and durability of the space cotton.

Lars Phillips, Head of Sales for TDI and Polyol in Asia Pacific at Covestro’s Performance Materials segment, said: “Covestro and Sinomax have invested in bio-based feedstock to offer more sustainable products to consumers. That shows that the upcoming mega trends of sustainability and carbon reduction play a gradually more important role for buying decisions and increasingly become a commercial reality.”

Mass-balanced products including TDI offered by Covestro are certified to the internationally recognized ISCC PLUS standard, which is already joined by many big multinational companies. Certified members can pass on certificates documenting the sustainable share of their products along the value chain.

Human Horizons, the Shanghai-based parent company of HiPhi, is an innovative technology enterprise targeting the global market. As a long-term partner of Human Horizons, Covestro has since 2018 been engaged in HiPhi’s R&D process in the model design stage – a breakthrough from tradtional way of collaboration along this value chain. 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. Advanced features such as facial recognition and display are embedded in the HiPhi X’s exterior B-pillar. These posts, connecting the vehicle’s roof to its body at the rear of the front door, are made possible by polycarbonates from Covestro, which enable a high-gloss appearance, dimensional stability and high-impact structure, and infrared transparency.

Covestro and HiPhi are now deepening their partnership to create next-generation solutions. HiPhi will employ an array of Covestro products, including CO₂-reduced polycarbonates, bio-based clearcoat hardeners, and mass-balanced, bio-attributed adhesive solutions, following an agreement signed today at Covestro’s booth at the China International Import Expo (CIIE).

“We’re delighted to join HiPhi, a partner bringing forth more innovations. Together we will create more sustainable and circular solutions for the automotive industry, which is making intensive efforts in its decarbonization journey while going smart,” said Lily Wang, President of Business Entity Engineering Plastics at Covestro. “We at Covestro hope to collaborate with more like-minded companies, like HiPhi, to join us on this journey to the circular economy. Together, we can accelerate the decarbonization trend and smart technology development at the same time.”

For example, Covestro polycarbonate solutions have already contributed to a sustainable world by enabling lightweight cars. Today, Covestro also offers CO₂​​​​​​​-reduced polycarbonates, such as those with post-consumer recycled (PCR) content and grades of mass-balanced, renewable attributed products.

Ding Lei, Founder, Chairman and CEO of Human Horizons, said, “Human Horizons is committed to redifining future mobility. Covestro’s high-quality polymer materials and products are key boosters to achieving a sustainable future in the automotive industry. We hope to promote this innovative collaboration with Covestro as a benchmark to encourage the whole industry to introduce innovative technologies more efficiently. In the future, Human Horizons will work with Covestro to develop innovative technologies to provide consumers with luxury high-tech mobility experience.”

On display at Covestro’s booth at the CIIE is the HiPhi Z, the latest smart sports sedan that features Covestro materials, including polycarbonate grades for the touchpad switch on its steering wheel – enabling a futuristic interactive design – as well as super lightweight carbon fiber reinforced thermoplastic composites that are also recyclable in decoration trims, and high performance waterborne polyurethane adhesives for auto interiors.

“Under the surface of futuristic design, Covestro’s low carbon material solution plays an indispensable role. We are dedicated to bringing more sustainability and higher performance into the vehicle, and deliver products of choice with automotive manufacturers,” said Zhong Xiaobin, Senior Vice President of the Coatings and Adhesives segment of Covestro in the Asia Pacific region. “We will continue to enhance the local development and production of sustainable automotive coatings and adhesives solutions to meet diverse client needs and tap the growing trend of sustainability.”

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.

Thanks to China’s “carbon peaking and carbon neutrality” goal and related environmental protection policies, waterborne adhesives—as substitute for solvent-borne adhesives—have enjoyed rapid growth, effectively driving demand for waterborne polyurethane dispersion (PUD) applications. Hence, PUD-based coatings and adhesives are expected to be the preferred technologies for downstream fields of application such as automotive, construction, furniture, footwear and packaging.

To meet the ever-expanding market needs, Covestro invested in a new PUD plant and a production line of polyester resin—the raw material for PUD—at its integrated site in Shanghai in July, serving the need for high quality and sustainable development in both China and the overseas markets.

Waterborne adhesive solutions for the consumer electronics sector

Covestro’s waterborne polyurethane adhesive solution for consumer electronics can be applied in areas such as consumer electronic carrying cases, smart speaker covers, and tablet personal computer protective cases. In line with the national standard GB 33372-2020, Covestro’s waterborne solution effectively reduces VOC contents compared with traditional solvent-based adhesives. This solution satisfies environmental performance without compromising high adaptability, smooth application and good bonding strength. Covestro’s waterborne solution provides industry customers with a wider range of choices of materials and enables individualized 3D shape. In addition, high resistance to humidity and heat will ensure product reliability and address multiple scenarios of consumer electronics.

Waterborne one-component footwear adhesives solution empowers efficient production

The newly developed waterborne one-component footwear adhesives solution taps into unmet industry needs for efficient production process, while ensuring bonding strength, heat resistance and anti-hydrolysis resistance performance.

The athletic footwear industry is transforming from one featuring labor-intensive to smart manufacturing. Consequently, streamlined industrial processes and automated technologies are under spotlight. As Covestro's one-component waterborne polyurethane dispersion technology for shoe assembling, Dispercoll® U not only circumvents onsite adhesives-mixing but also reduces the risk of dead glues due to its unique properties, thus significantly improving process efficiency and reducing waste.

Shaping the future of circular product portfolios

In addition to new product launches, Covestro also showcased circular solutions for a variety of sectors, demonstrating its strategic approach of integrating business development with corporate social responsibilities and shaping the future of the industry.

• Desmodur® eco, the footwear adhesive hardener with approximately 70 percent bio-based content, enables the footwear industry to achieve lower carbon footprint and helps reduce carbon emissions. It allows for application of the material to the existing formulation without further adjustment.
• In response to sustainability calls, Covestro launched Dispercoll® U, the compostable laminating adhesive solution for flexible packaging. As per DIN EN 13432 (Europe) and ASTM D 6400-04 (USA) standards, it achieves a high (~90 percent) degradation rate under controlled aerobic conditions and is beneficial to the efficient degradation of packaging materials.
• Decovery®, the raw material of partially bio-based bottle label adhesives, is a waterborne alkali-soluble acrylic copolymer dispersion with a bio-based content of approximately 35 percent. Covestro estimates that every 1 kg of Decovery® can contribute to an overall carbon reduction of 0.3 kg. Meanwhile, the easy-to-remove label simplifies the recycling process and helps the packaging industry achieve comprehensive sustainable development.
• Desmocap®, a partially bio-based epoxy toughening agent developed from the extract of cashew nut shell oil, is mainly applied in the automotive, wind power, and rail transportation industries. This solution can effectively improve the flexibility and bonding strength of the epoxy system.

To bring new perspectives and technological breakthroughs to the industry, Covestro is committed to fostering innovation in all areas of daily life and relentlessly investing in the R&D of sustainability solutions.

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.

"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.

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."

"With this agreement, Covestro, Mitsui Chemicals, and Mitsui & Co., Ltd are taking their partnership to a new level, with the goal of supplying customers along the process chain with more sustainable raw materials from mass-balanced, renewable sources," says Sucheta Govil, Chief Commercial Officer of Covestro. "I am very pleased that we are now also gradually converting our production in Asia to products with renewable raw materials. In this way, we are helping customers achieve their sustainability goals and offering them a drop-in solution that they can use immediately without a major changeover."

Recently, the first shipment of mass-balanced phenol produced by Mitsui Chemicals, Inc., from its Osaka site arrived at the production site of Covestro in Caojing, Shanghai. Further shipments are to follow, also including bio-attributed acetone. Mitsui Chemicals uses bio-feedstock from waste and residues as raw material basis for its bio-attributed phenol and acetone products.

"We’re pursuing not only plastic recycling but also a switch to biomass in aim of realizing a circular economy," said Yoshino Tadashi, Senior Managing Executive Director and President of the Basic Materials Business Sector of Mitsui Chemicals. "So it’s a delight to have been able to make our first shipment and delivery of mass-balanced phenol based on bio-feedstock to Covestro. With our materiality contributing to the realization of a sustainable society, we look forward to working together with everyone to steadily promote the social implementation of biomass."

"Our long-term partnerships with Covestro and Mitsui Chemicals have enabled us to deliver the first renewable Phenol in Asia." said Takashi Furutani, Chief Operating Officer of the Basic Materials Business Unit of Mitsui & Co. "Mitsui is committed to providing solutions for customers who work towards a circular economy. This is just the beginning of our journey."

In mass balancing, bio-based raw materials are used at an early stage of production and mathematically allocated to finished products. This saves fossil raw materials and reduces greenhouse gas emissions, while the quality of mass-balanced products remains the same compared to purely fossil-based ones.

ISCC ("International Sustainability and Carbon Certification") is an internationally recognized system for sustainability certification of biomass and bioenergy, among others. ISCC Plus includes additional certification options e.g. for techno-chemical applications, including biomass-based plastics.

The first batch of the bio-attributed TDI via mass balance is expected to be delivered from Covestro Integrated Site Shanghai in the first quarter of 2022, and be applied to Sinomax’s medium and high-end product lines for mattresses, pillows and mattress toppers. Both partners signed an agreement to this effect at the Hong Kong office of Covestro on December 15. Covestro and Sinomax, based in Hong Kong, China, also agreed to extend their regional partnership to a global scale, with Sinomax scaling up their operations in the United States.

TDI (toluene diisocyanate) is a key building block of polyurethane flexible foams, which are widely used in the furniture, automotive, and shoe industries. It can also be used in the production of polyurethane coatings and adhesives.

Eric Cheung, President of Sinomax said, "We have been working hard to reduce carbon emissions, and Covestro’s mass-balanced TDI products can effectively help us meet emissions reduction goals. With a global footprint, Covestro has sufficient, stable and fast delivery capacity in major markets, which is crucial to our global development."

"With this mass-balanced lower-carbon-footprint TDI, we are further enriching our broad portfolio focused on the circular economy, in response to the rising demand for more sustainable products," said Sucheta Govil, Chief Commercial Officer of Covestro. "By helping an increasing number of customers and value chain partners across industries meet their sustainability targets, we are accelerating the transition to the circular economy together."

Mass balance is a chain of custody method that allows fossil and alternative feedstock to be mixed in production, but separated in bookkeeping. It is able to track materials through the value chains and allows attribution of alternative feedstock, like bio-based raw materials, to selected end products.

"With this new approach of incorporating sustainable raw materials into our TDI, the reduction of CO₂ footprints in the flexible foam industry can be accelerated immediately and also become easily scalable. We are excited to take this first step globally here in Asia Pacific with our partner Sinomax that shares our vision and commitment towards the circular economy," outlines Marius Wirtz, Head of Sales in the Performance Materials segment of Covestro in the Asia Pacific region.

Covestro earlier received the ISCC Plus certification for its Shanghai production site. Now the site is able to offer Asia Pacific customers large volumes of TDI, in addition to polycarbonate and MDI with alternative feedstock attributed via mass balance. These products are of the same good quality as their fossil-based counterparts and can be used as a drop-in solution, meaning they can be implemented in existing production processes without the need for technical modification.

"With our broad portfolio focused on the circular economy in various industries, we are strategically well positioned to support China's sustainable development, particularly the country's ambitions to become carbon neutral," said Dr. Markus Steilemann, Covestro's CEO. "Our vision to become fully circular is in line with China's megatrends, as we recognize that China will play a key role in the transition to a circular economy."

Asia debut of mass-balanced MDI and polycarbonate

A key focus of Covestro's presence at CIIE is the use of alternative raw materials. This includes the Asian debut of two ISCC PLUS-certified mass-balanced products with a lower carbon footprint: these are MDI – a key raw material for polyurethanes (PU) – and the high-performance plastic polycarbonate, with imported raw materials. Both contain a significant proportion of alternative raw materials, including plant waste, residual fats and vegetable oils, which partially replace fossil resources. And both are used in a wide range of applications: polyurethanes in insulation, upholstered furniture and automotive manufacturing; polycarbonates in the electronics, automotive and healthcare industries. Covestro's mass-balanced products help make these end-use applications more sustainable, supporting the circular economy and, in some cases, climate neutrality.

Portfolio with diverse applications to enable circular economy

At CIIE, Covestro will be presenting even more technologies, products and solutions to this end. Here are a few examples:

• The company has developed a new technology for recycling flexible foam from polyurethane mattresses that enables the recovery of both key raw materials. This allows the carbon footprint to be reduced along the entire value chain for PU mattresses.
• Covestro is exhibiting its Triturn® CO₂ technology, which enables carbon dioxide to be reused as a valuable alternative raw material in polyol production, replacing up to 20 percent of fossil feedstock. It can be leveraged for many different types of applications and industries, such as flexible foam for mattresses and binders for sports flooring, as an answer to address consumer demands and the rising environmental awareness.
• In Electronics & Electrical, exhibits ranging from 5G infrastructure to smart devices show how Covestro's low carbon footprint material solutions can enable a new era of smart connectivity. The company's portfolio includes polycarbonates with high post-consumer recycled content and with mass-balanced renewable raw materials that can reduce carbon footprints by up to 80 percent.
• Renewable energy highlights include polyurethane resins that enable lighter wind rotor blades and improve the efficiency of their production, and various other material solutions for effective expansion of this renewable energy.
• In the green building sector, Covestro brings its polyurethane solutions for energy-saving pultrusion windows and as insulating foams for buildings, as well as partially bio-based polyurethane coatings for wood furniture.

To learn more about Covestro's solutions for a carbon-neutral future at CIIE, visit Covestro's booth, number 3B5-005, at the National Exhibition and Convention Center (Shanghai) from November 5-10, 2021.

CISS, the company’s biggest site worldwide, is the first Covestro site in the Asia Pacific region to have received the ISCC Plus certification, following in the footsteps of the two European sites Antwerp in Belgium and Uerdingen, Germany, at the end of last year. In the meantime, two local trading entities, Covestro (Shanghai) Investment Co., Ltd. and Covestro (Hong Kong) Ltd., have also been ISCC Plus certified.

This means that certified mass-balanced products can now be delivered seamlessly from Covestro’s production and trading units to downstream industries. The company will start delivering the first order for certified mass-balanced polycarbonates of the Makrolon® RE range to the electronics industry in September.

"It makes me proud that we’ve taken a big step forward towards our vision to be fully circular in order to meet the demand for more sustainable products," says Sucheta Govil, Chief Commercial Officer at Covestro. "With the mass balance certification, we are now able to directly support our customers in Asia Pacific to reduce carbon footprint with a drop-in solution that can be implemented in existing production processes without the need for technical modification."

Mass balance approach with alternative raw materials

Dr. Yun Chen, General Manager of Covestro Integrated Site Shanghai, says, "This is a critical step towards achieving climate neutrality and ultimately moving towards full circular economy: We are obtaining an external certification, advocating for the use of more sustainable raw materials, and truly bridging the goal of reducing the total carbon footprint to the production, distribution and sourcing of raw materials for our products."

Mass balance is a chain of custody method that allows fossil and alternative feedstock to be mixed in production but separated in bookkeeping. It is able to track materials through the value chains and allows attribution of alternative feedstock, like bio-based raw materials, to selected end products. Through the mass balance approach, alternative raw materials are introduced into the value chain while taking advantage of the existing chemical infrastructure with its high efficiency and economies of scale, accelerating the transition of the industry to a circular economy of plastics.

Up to 80 percent reduction in CO₂ footprint

Mass balanced products from Covestro with attributed alternative content have significantly lower CO₂ footprint compared to fossil-based alternatives while enjoying the same good quality and properties. Mass-balanced Makrolon® RE, for example, offers superior climate performance with up to 80 percent reduction in carbon footprint compared to standard virgin material already today. Covestro plans to make selected Makrolon® RE polycarbonates climate neutral by the use of renewable energy at its European sites by the end of this year, to be followed by other regions.

Covestro is gradually converting to alternative raw material sources including renewables as part of a comprehensive program to drive forward the transition to a Circular Economy. The certification of the polycarbonate as well as the intermediate product MDI strengthens the use of alternative raw materials at Covestro. Polycarbonate is used in high-quality applications in the automotive and electronics industries, among others. MDI is used to produce rigid polyurethane foam, which has been providing efficient thermal insulation for refrigeration appliances and buildings for decades.

ISCC ("International Sustainability and Carbon Certification") is an internationally recognized system for the sustainability certification of biomass and bioenergy. The standard applies to all stages of the value chain and is recognized worldwide.

Energy supply partly from renewable sources

Separately, Covestro´s Integrated Site Shanghai has signed a contract to purchase 100 gigawatt-hours per year of solar power from Datang Wuzhong New Energy Co.’s solar farms in northwest China’s Ningxia region. This is another step on the road to using renewable energies in its production and thus realizing the company’s vision of becoming fully circular. This amount is equivalent to about 10 percent of the site’s annual electricity demand. This energy will increase the amount of renewable energy already used by CISS.

This application focuses on waterborne PU dispersions with up to 50 percent biomass-based carbon content, reducing the CO₂ footprint accordingly but offering the same good quality as fossil-based raw materials. The coating also features a premium look and feel – as befits the characteristic quality of these notebooks. Using INSQIN® technology, Moleskine® and Chinese PU synthetics material specialist Hexin are now able to produce partially bio-based coatings for hardcover and softcover notebooks.

On the path to more circularity

"We are partnering with Covestro to perfect these high-quality, low-solvent coatings for our classic Moleskine® notebook covers," says Daniela Riccardi, the company's Chief Executive Officer. "Covestro’s partially bio-based coating technology enables us to reduce our impact on the environment and improve our sustainability."

"Working with innovative partners like Moleskine® allows us to develop more sustainable materials," explains Dr. Torsten Pohl, global head of Textile Coating at Covestro. "With our new partially bio-based raw material, Covestro allows for a total of approximately 23 percent renewable carbon in this coating, which is in line with our vision to become fully circular."

The project is part of a global strategic program with which Covestro is fully committed to the circular economy. That’s why the company is focusing on the use of alternative raw materials and renewable energy, the development of innovative recycling technologies, and collaboration with partners along the value chains.

Meanwhile, the materials manufacturer unveiled plans to start offering the world’s first climate-neutral polycarbonates later this year, in a major step towards its vision to become fully circular while better supporting its customers to reach their sustainability goals.

"This is another milestone in pursuing our sustainability vision. We are committed to supporting our customers in mobility, electronics, electrical, healthcare and appliances industries to meet their challenges by providing products and solutions that provide excellent performance, cost efficiencies and sustainability," says Michelle Jou, President of the Polycarbonates segment at Covestro. "We are accompanying our clients in accelerating the transition to the Circular Economy, as well as helping to build an industrial ecology that favors circularity."

World’s first climate-neutral polycarbonate resin

These polycarbonate grades are climate neutral from cradle to gate¹, thanks to the introduction of raw materials coming from mass-balanced bio-waste and residues² and renewable energy into the production process. Covestro is already supplying ISCC PLUS certified polycarbonates based on renewable feedstock attributed via the mass balance approach, with a significant carbon footprint reduction. Mass balance is a chain of custody method to track materials through the value chains and allows allocation of renewable feedstock to selected end products.

"With the use of renewable energy, Covestro is expected to cut carbon emissions completely for these selected products from cradle to gate. These products have the same good quality and performance as fossil-based polycarbonates, and are a drop-in replacement without the need to modify existing processes or workflows," says Jimena Ruesta, Venture Manager, Sustainability Solutions at Covestro’s Polycarbonates segment. The first climate-neutral products are going to be delivered from the company’s European sites later this year, to be followed by sites in other regions including China, in agreement with market requirements.

Meanwhile, Covestro announced that it is now offering post-consumer recycled (PCR) polycarbonates on its flagship store at 1688.com, China’s leading B2B trading platform under the Alibaba Group, to better support its customers in reaching their sustainability targets with this digital approach. With 75 percent recycled content, the PCR grade offered on 1688.com reduces the carbon footprint by 50 percent compared to the virgin grade.

Advanced solutions for multiple industries

In the electrical, electronics and appliances industry, Covestro helps electrical and electronics brands obtain the EPEAT (Electronic Product Environmental Assessment Tool) ecolabel, resonate with global consumers in caring for the environment, and fulfill their commitments to low carbon and recycling with a diversified sustainable solution portfolio, together with rigorous supply chain and quality control processes. At CHINAPLAS, Covestro will also present a series of high-performance materials solutions that enable intelligent functions, connectivity, aesthetics, and circular design. Thin-wall, flame-retardant Makrolon^® and Bayblend^® polycarbonates cater to the design trends in the consumer electronics and smart home appliances sectors, while the thermal conductivity of Makrolon^® leads to enhanced heat dissipation in high-performance smart interconnected devices.

Themobility industry also has increasing requirements for materials. In response to the personalization and functionality trends, especially in the passenger vehicle market, Covestro provides integrated front grille materials solutions for distinctive exterior styling, while enabling effective combination with autonomous functions. The company’s DirectCoating process and transparent glass-fiber polycarbonates enable interior trims with visual aesthetics and processing efficiency. In addition, Covestro will present battery pack materials solutions for electric vehicles that cater to various battery module materials, reduce energy consumption by lowering vehicle weight, and guarantee vehicle safety.

As healthcare patients increasingly self-administer medicines, they rely on drug delivery devices using low-friction components for accurate dosing. To enable faster recovery, patients demand minimally invasive surgeries, where strong and reliable surgical tools are needed. Therefore, Covestro introduces a new glass-fiber reinforced medical polycarbonate portfolio for surgical and drug delivery applications, such as internal components for delivery devices and handles for surgical tools. It also introduces a new low-friction medical polycarbonate portfolio used in moving components for delivery devices, eliminating the need for external lubricants. Both scenarios will be displayed at CHINAPLAS 2021 to showcase how Covestro leverages these new materials and beyond to meet healthcare needs of today and the future.

Design aesthetics increase value

Also on display is Covestro’s CMF (color, material, finish) expertise. Covestro’s CMF Team aims to provide clients with unique solutions by considering aesthetic value, design trends, and composition materials. The artwork ´garden´ to be exhibited at the booth consists of recycled Nongfu Spring water barrels in combination with Covestro’s latest CMF trend colors, forming the "Beautiful Recycling Flower".

Additionally, Covestro will present the Circular Design Guidebook for the electrical, electronics and home appliance industries. The guide, jointly authored with consultancy REnato lab, is designed to help designers, developers and other players in the value chain to consider the Circular Economy from an early stage of product design, as well as providing instructions on how to select materials.

Visitors can visit Covestro’s booth at 17P71-1, Hall 17, Shenzhen World Exhibition & Convention Center. Covestro’s CHINAPLAS digital showroom will be launched simultaneously.

¹ Cradle-to-gate is an assessment of a partial product life cycle from resource extraction (cradle) to the factory gate. Based on Covestro internal calculation, external review is ongoing.
² Biogenic carbon uptake is considered in the carbon footprint calculation.

“The rollout of the 5G network in particular, will take the industry to a whole new level, but will also lead to higher consumer expectations regarding device performance,” says Dr. Miya Ma, Industrial Marketing and Business Development Manager for 5G Applications in the Coatings, Adhesives, Specialties segment in the Asia-Pacific region at Covestro. “That's why we are working with partners and customers to develop innovative material solutions to bring trendy products to the market faster.”

Intelligent accessory

One current example is the functional Smart Mirror from the Chinese manufacturer MINE Technologies. The mirror cover is coated with AkzoNobel's waterborne soft-touch coating, which gives it a silky feel and a luxurious matte effect. It is highly resistant to abrasion and scratching and is based on the polyurethane raw materials Bayhydrol® and Bayhydur® from Covestro. The water-based coating is characterized by only low emission of volatile organic compounds (VOCs) contributing to a more sustainable manufacturing process.

The mirror also features compelling new electronic functions. If you swipe its edge, it begins to glow. The brightness can also be adjusted via swiping. The Smart Mirror can also connect to WiFi networks and is capable of recharging wirelessly. The product received an “iF Design Award” and an “International Design Excellence Award (IDEA)” in 2018.

Versatile material solutions

With pilot projects like this, Covestro is positioning itself in the growing consumer electronics devices market. In doing so, the company is supporting customers along the value chains in accordance with principles of CMF design (Color, Material, Finishing). In addition to the variant presented here, silk, velvet, and leather-like product surfaces with various degrees of matte and gloss can also be produced.

The mirror's back panel and light ring are made of Makrolon® polycarbonate from Covestro, which is characterized by its impact strength, heat resistance, flame retardancy and transparency. The company also offers post consumer recycled solutions and polycarbonate material with renewable contents to help consumer electronics customers achieve their sustainability goal. The mirror also includes a bag made by the Shanghai-based company Huafon Microfibre. It employs a microfiber leather solution for this purpose, using the polyurethane raw material Desmodur®.

Press Releases:

• Closing the loop for polyurethane mattresses
• Covestro and REnato lab launch Circular Design Guidebook for EEA industry

Photos:

Infographic:

Videos:

More and more consumers are focusing on comfort and aesthetics in the interior of automobiles. As a result, interior materials, haptics and even the perception of lighting are playing an increasingly important role in purchasing decisions. As part of its cooperation with GAC Design's Advanced Design Team, Covestro's global Color & Design (CMF) team in the Polycarbonates segment developed a series of tailored design themes and solutions. They are based on systematic studies of automotive interior trends in China and insights from consumer surveys. The results include the China Automotive Interior Design Trend Report, China Future Consumer Research Report, 2022-2023 Automotive Interior CMF Design Plan and CMF Materials Display Walls.

Transforming CMF design trends into solutions

"The consulting services we provide to GAC Design's Advanced Design team mark another new milestone for Covestro in CMF," said Dr. Christopher Stillings, Vice President and Global Head of Color & Design (CMF) at Covestro's Polycarbonates segment. "In addition to our innovation capabilities in cutting-edge materials and processing technologies, Covestro has gained the expertise to transform CMF design trends into innovative color material finishing solutions that can be mass produced, creating more value for our customers through color and aesthetics. It is our goal to further expand our collaboration and service offering – in particular with our customers' designers and CMF experts."

"A reasonable selection of colors, materials and finishes for automotive interiors is key to improving comfort and aesthetics," says Stephen Chen, Advanced Chief Designer at GAC Design. "Materials need to cater to the increasingly diversified interior designs for cars. Covestro's expertise in materials and CMF can not only provide us with the most appropriate materials, but also help us showcase their aesthetic value."

Previously, Covestro has collaborated with GAC to leverage its thermoplastic composites to produce lightweight seat backs for the automaker's electric concept cars. "We are pleased to be working with GAC again, this time with their design team. In addition to their R&D and CMF teams, we have also collaborated extensively with design companies and academic institutions. We have strong expertise and a good track record in providing customers with integrated solutions and making their products more attractive," said Terence Yau, Vice President of Covestro's Polycarbonates segment in China.

The global Color & Design (CMF) team at Covestro's Polycarbonates segment was established in late 2018 to provide customers with globally consistent polycarbonate color development and matching services through its six Color & Design Centers around the world. Polycarbonate-based color palettes and popular colors aligned with CMF trends have been released since 2020. The Shanghai-based CMF team can be reached at cmf_design@covestro.com.

"With these investments, we are preparing for the continued growth in demand for these products and expanding our leading global position," says Michael Friede, Global Head of the Coatings, Adhesives, Specialties segment at Covestro. "In the future, customers will continue to rely on replacing solvent-based products with more sustainable waterborne systems with equally good properties. Thanks to our versatile production, we are at the same time flexible and can satisfy many different requirements."

Covestro develops tailor-made PUDs for a wide range of industries, thereby creating new growth opportunities. The company is a leader in research and development of products and process technologies and supports customers around the globe with technical service.

Wide range of applications

The areas of application for polyurethane dispersions are highly diversified. For instance, Covestro raw materials from the Bayhydrol® UH, U and UV series and Bayhytherm® are used in basecoats for automotive primary and refinish coatings, as well as in wood and furniture coatings and robust floor coatings. Adhesives formulated with Dispercoll® U are used in furniture and shoe manufacturing as well as in the automotive industry.

The low-solvent components also play an important role in the production of coated textiles and fiber-reinforced plastics.

For this purpose Covestro, one of the world leading companies in high performance polyurethane solutions, provided the leading wind turbine blade manufacturer Goldwind with a special Baulé^® infusion machine for processing its high performance polyurethane resin. Goldwind and Covestro achieved a major breakthrough with the development and production of a 64.2 m long polyurethane turbine blade.

“Covestro Elastomers developed a tailor-made Baulé^® machine for the direct infusion of polyurethane rotor blades,” said Philippe Jeantin, Global Head of Machines Division, Business Segment Elastomers at Covestro. “We designed this machine to solve various challenges involved in this manufacturing process, e.g. process under vacuum, high volume casting and speed of resin infusion. This machine is therefore combining a very accurate dosing, a large variable output controlled by in-mold pressure and a real time data management to ensure a high quality direct infusion process for these large rotor blades.”

New vacuum infusion equipment for polyurethane resin processing

“Today, as the wind energy market is growing, we are faced with the challenge of producing ever-larger wind blades,” says Liu Baofeng, Professor-level Senior Engineer, Head of Windblade Material Development at Goldwind. “We were therefore looking for a reliable partner to provide us with the dispensing equipment which is suitable for processing the PU resin especially developed for larger wind blades. Our manufacture was successful thanks to the machine that Covestro engineered for the production of a 64.2 meter turbine blade. It will allow us to propel the whole industry to make sustainable and innovating progress towards such large blades. In the future, both sides will strengthen the cooperation in materials and related equipment, for promoting a continuous innovation and upgrading of materials for rotor blades.”

“The successful trail of this such long rotor blade manufacture using polyurethane resin proved that our Baulé^® machine is qualified for the direct infusion process,” adds Simon Chen, Head of Covestro Elastomers in the Asia-Pacific region. “Our local machine team in China will support our partners to achieve rapid growth and technical upgrading of the wind power industry.

”With the rapid development of the wind power industry, larger wind turbine blades have become increasingly popular in the industry. Covestro has been committed to providing innovative and sustainable products and cost-effective integrated solutions for the wind power industry to cope with market requirements and to support the expansion of renewable energy. In cooperation with industry partners such as Goldwind, Covestro will continue to contribute to the efficient development of the wind power industry.

The polyurethane wind turbine blade, from the spar cap to the shear web and the shell, is made entirely of polyurethane infusion resin, making it the first of its kind in the global wind power industry. Extensive static and dynamic fatigue tests are being carried out to evaluate the durability of the wind turbine blade before small-scale production commences in 2020.

“In the course of our R&D cooperation with Goldwind and LZ Blades, the superior properties of polyurethane resin were further proven through this trial production. We believe that Covestro’s solution can greatly contribute to the sustainable development of the wind power industry,” said Dr. Irene Li, Head of Application Development Asia Pacific in the Polyurethanes segment at Covestro.

Decreased costs and increased benefits for wind power enterprises

Test results showed that the polyurethane resin displays better mechanical properties compared with traditional epoxy resin. As it does not require post-curing and has a lower viscosity and faster infusion speed, the polyurethane resin system can greatly improve the efficiency of blade production, thus increasing the competitiveness of blade manufacturers. In the end, the solution with the polyurethane resin is more cost competitive than the one with the epoxy resin.

In addition, Goldwind has optimized the structural design of the blade, giving better play to the advantages of polyurethane’s mechanical properties and infusion speed and ensuring the smooth production of the blade.

Birong Wen, head of Goldwind’s wind blade development team, said, “Polyurethane is a very cost-effective material, and can thus provide great support for wind power enterprises when wind power prices will reach parity with thermal power after 2020. In the future, we will invest more in the development of new materials and explore how to apply these technologies to large-scale offshore blades to achieve greater competitiveness. This will help boost the upgrading of materials for wind turbine blades and the continuous innovation of the industry.”

Jitendra Bijlani, head of R&D from LZ Blades, said: “The improvement of blade production efficiency by using polyurethane not only enhances the blade cost competitiveness, but also becomes the key to serve our esteemed customers with material technology flexibility. This keeps us ahead in an increasingly challenging market environment."

With the rapid development of the wind power industry, larger wind turbine blades have become increasingly popular in the industry, resulting in higher requirements for various aspects of wind turbine manufacturing, including the infusion resin. As the inventor of polyurethane chemistry and a leader in its application, Covestro has been committed to providing innovative products and cost-effective integrated solutions for the wind power industry to ride the latest development trends. In further cooperation with industry partners, Covestro will continue to contribute to the efficient development of the wind power industry.

About Goldwind:

Established in 1998, Goldwind is a world leading wind turbine technology and energy solutions provider. Goldwind was among the “Top 50 Most Innovative Companies” on several occasions, one of 2016 “Top 100 Global Challengers”, and one of Intellectual Asset Management’s (IAM magazine) Intellectual Property Champions of China. Since Goldwind was founded, it has installed a total capacity of 50 GW in power around the world, with 31,000 operational wind turbines on six continents and in nearly 24 countries. Also, Goldwind is listed on the Shenzhen Stock Exchange (002202) and Hong Kong Stock Exchange (02208). On October 22, 2019, the “2019 Global New Energy Enterprise 500 List” was released, in which Goldwind ranked 24th.

About LZ Blades:

LZ Blades (Lianyungang Zhongfu Lianzhong Composites Group Co., Ltd. ) is a national key high-tech enterprise integrating the development, design, production and service of composite products. Belonging to China National Building Material Group (CNBM), a leading diversified PRC building materials company, LZLZ Blades is headquartered in Lianyungang, Jiangsu Province, the coast city which makes LZ Blades the nearest factory to the port with a distance of only 35 km. Besides, LZ Blades owns 8 blade manufacturing facilities in China.

With the faith of protecting clear water and blue sky, LZ Blades makes continuous efforts in blade development. Since the very first piece of blade was successfully manufactured in 2006, LZ Blades has earned great success in both home and abroad market. Up till the end of 2019, the accumulated installed capacity of LZ Blades reached 30,000 MW with 20,000 sets of blades being produced. Keeping the mind of forging ahead with innovation, LZ Blades dedicates to providing the best and professional services to its customers.

About Covestro:

With 2019 sales of EUR 12.4 billion, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. Covestro has 30 production sites worldwide and employs approximately 17,200 people (calculated as full-time equivalents) at the end of 2019.

Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

GAC describes the ENO.146 as one of the most aerodynamically efficient vehicles in the world, thanks to a drag coefficient of only 0.146 (hence the name) and a NEDC (New European Driving Cycle) range of 1,000 kilometers. While a fully aerodynamic design is key to achieving such performance goals, the GAC R&D Center also uses lightweight and sustainable materials to reduce the weight of the car while raising the bar for sustainability. Covestro’s Maezio™ thermoplastic composite material is one of them.

“Mobility trends such as electrification and autonomous driving are redefining the role and function of car interiors,” says Zhang Fan, Vice President of the GAC R&D Center. “There is a growing need for material solutions that are lightweight and sustainable while opening up ways to create new user experiences ranging from visual to tactile feedback.”

Beyond weight savings

The backrests of the two front seats of the concept car are made of Maezio™ CFRTP, the reinforced thermoplastic composite material from Covestro. It is estimated that the composite seat backrest can save up to 50 percent in weight compared to typical metal constructions.

“Seats in the passenger compartment are an ideal target for weight savings, as they are among the heaviest parts there,” says Lisa Ketelsen, head of Covestro's thermoplastic composites business. “Fibre reinforced composites are the ideal material for lightweight automotive construction, but Maezio™ can further simplify molding and streamline the manufacturing process.”

In the case of a seat with a metal backrest, fittings and other attachments add to the complexity of production and assembly. Since Maezio™ is a thermoplastic material, parts and functions can be consolidated by injection molding processing. Functional structures are incorporated into the mould for shaping the backrest, reducing the number of parts and materials.  

Sustainable material

From the CMF (Color, Material, Finish) perspective, the design of the vehicle interior in ENO.146 was inspired by nature. According to Stephen Chen, chief designer in Advanced Design, GAC R&D Center, the choice of green color and various sustainable materials is intended to recreate the ambience of a lake with lotus flowers. The surface pattern of the front of the seat, for example, is designed to resemble that of lotus leaves.

“The backrest must fit into this design concept as a visible component, so the material must have a natural look and feel and high aesthetic value, and it must also be recyclable,” says Stephen Chen.

And this is exactly where Maezio™ comes in. This thermoplastic composite material can be cut and shaped at will to be reused at the end of its service life, giving it a unique marble-like appearance and a high quality look and feel, making it a sustainable material choice that fits perfectly into the design concept of the vehicle.

This is also reflected in the development of wind power capacity, which is seeing double-digit annual growth across the globe. China is the world’s largest wind power market with 221 GW of installed capacity at the end of 2018, according to the World Wind Energy Association.(1)

Concept for cost-efficient production of rotor blades

However, cost-efficient processes for manufacturing wind power plants are in greater demand than ever to enable further expansion and for competing with traditional energy resources. Once in operation, the aim is for turbines to be used over a lengthy period with the lowest possible maintenance requirements.

In order to meet this challenge, Covestro has joined forces with partners and developed a polyurethane (PU) resin and a manufacturing technology, which – in conjunction with glass fiber mats and an efficient production process – enables shorter cycle times. “This is a clear cost advantage for manufacturers,” says Dirk Soontjens, who coordinates the global wind power activities of Covestro. “Its advantage over epoxy resins used so far is that it flows more easily and ensures better wetting of the glass fiber mats used for reinforcement.” The resin also exhibits very good mechanical properties and meets many regulatory and industry performance standards.

Progress in China and Europe

Only recently, Covestro has processed the first commercial order for utilization of the PU resin for production of eighteen wind rotor blades with a length of 59.5 meters each, together with the respective spar caps and shear webs, all manufactured by Zhuzhou Times New Material Technology (TMT), one of the largest wind blade manufacturers in China. The blades were delivered to Envision, a leading global wind turbine technology company, and are scheduled to be installed in a wind farm in Eastern China in July 2019.

Also in Europe, Covestro collaborates with leading players of the wind power industry and intends to commercialize its technology shortly. Besides that, Covestro operates a new wind power laboratory in Leverkusen, which expands its global lab capacities in Asia and Europe to support customers and innovation.

High performance coatings with higher productivity

Covestro has also developed coating solutions with higher cost efficiency. For instance, protective coatings based on Pasquick^® technology for steel towers as well as gel coatings for blades of wind power plants significantly increase productivity and ensure a long lasting performance without maintenance. This is due to the fact that the use of Pasquick^® requires one layer less than conventional corrosion protection and that the coatings have a lower curing time.

Besides that, waterborne topcoats based on Bayhydur^® and Bayhydrol^® provide long-lasting performance with low solvent emissions. Last but not least, Covestro also offers leading edge protection for rotor blades based on products of the Desmodur^® line, providing long lasting protection against abrasion.

About Covestro

With 2018 sales of EUR 14.6 billion, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. Covestro has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.

https://wwindea.org/blog/2019/02/25/wind-power-capacity-worldwide-reaches-600-gw-539-gw-added-in-2018/

Find more information at www.covestro.com.
Follow us on Twitter: https://twitter.com/covestro

Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

Covestro delivered polyurethane resin to TMT for the production of 18 polyurethane wind blades of 59.5-meter-length, also for the spar caps and shear webs. These blades were delivered to Envision, heralding the successful deployment of Covestro’s innovative polyurethane resin in blades for commercial wind farm projects.

To ensure successful deployment, the Covestro wind power team produced a prototype of the wind blades which has passed static and fatigue tests. The prototype was put into trial operation at a wind farm in central China in 2018.

Polyurethane resin – a game-changing innovation

Ulrich Liman, Global Head of R&D, Business Unit Polyurethanes at Covestro said, “We are very excited to be working with Envision and TMT on this first sales order of PU wind blades in China. Polyurethane resin in the production of wind blades, is a game-changing innovation delivered by Covestro teams around the world. We remain committed to our vision of creating products that benefit society and improve people’s lives all over the world.”

Zilu Liang, Deputy Chief Engineer, Wind Power Products at TMT, said, “As an innovative material, polyurethane, compared to epoxy resin, has advantages in costs and in the production process. We have cooperated with Covestro since 2016, and now we have achieved continuous production. We hope to further collaborate with Covestro to explore large-scale wind blades and wind blades completely made of polyurethane.”

Superior properties

Covestro’s novel polyurethane infusion resin was developed to help the wind power industry meet the growing demand for longer wind blade designs. Wind turbine rotor blades of this kind are typically made out of fiberglass-reinforced resin by applying vacuum infusion technology. The successful use of polyurethane resin for manufacturing large-scale rotor blades for wind turbines suggests that the material itself features superior mechanical properties and anti-fatigue performance. There are also benefits for the production processes in the wind blade factory, for example, a faster curing process and better processing properties todeliver higher productivity levels.

Irene Li, Head of PU Application Development Asia Pacific at Covestro, summarized, “This is the first step to realizing the industrialization of polyurethane resin in the wind industry, opening up a new chapter in polyurethane chemistry. We believe that our polyurethane solution delivers significant advantages in wind blade production and along the value chain.”

(1) https://wwindea.org/blog/2019/02/25/wind-power-capacity-worldwide-reaches-600-gw-539-gw-added-in-2018/

About Covestro:

With 2018 sales of EUR 14.6 billion, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. Covestro has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.

Find more information at www.covestro.com.
Follow us on Twitter: https://twitter.com/covestro

Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

The laboratory will develop digital solutions for using polyurethanes in appliance production – in line with Covestro’s digitalization strategy. The objective is to set a new benchmark for digitalizing the chemical industry.

Best insulation with polyurethane

All over the world, polyurethane rigid foam is the material of choice for efficient refrigerator insulation. To insulate a refrigerator, a precisely dosed amount of polyurethane raw materials is injected into the outer cavity and fills it up completely during foam formation. Both this material and the related foaming process are crucial for the refrigerator industry.

Fully-automated, smart production depends primarily on a precise characterization of the polyurethane components – a complex task. With the development of digital solutions, Covestro hopes to open up new avenues for helping household appliance manufacturers overcome these challenges.

Process optimization through digitalization

In the new Haier – Covestro Digitalization Joint Laboratory, both partners want to develop innovative solutions for data collection and analysis, monitoring foam quality and process workflows and continuously optimizing processes. These innovative measures will continuously improve the polyurethane foaming and manufacturing process, improve foam quality and reduce manufacturing costs. This will open up new opportunities for the domestic appliance industry in an increasingly digitalized world.

“With this collaboration, Covestro benefits from its comprehensive experience with polyurethane and foam technologies, while Haier brings in its expertise in industrial automation and the analysis of large volumes of data,” explains Dr. Ulrich Liman, global head of research and development in the Polyurethanes segment at Covestro. “This combination is bringing forth a new era of digital transformation in the chemical industry.”

Pioneers of intelligent production

Launched by Haier, COSMOPlat is the first industrial internet platform in the world to let users participate in the whole process. It can realize the transformation from mass manufacturing to mass customization, reshaping the industrial value chain and eco-chain, and further empower enterprises, users and suppliers to build a new manufacturing eco-system that can realize win-win cooperation.

Haier itself explains COSMOPlat “as an open multilateral interactive co-creation and sharing eco-platform. Our COSMOPlat user experience based mass customization model can be copied across industries, fields, and cultures. It is an industrial internet platform with global universalities. Our cooperation with Covestro will undoubtedly inject a key innovative force in chemical digitalization into Haier's path towards intelligent manufacturing.”

Mass customization solutions

In recent years, various industries in China have driven the digital transformation. For the traditional chemical industry, this also has an impact on the development of upstream and downstream value chains. Covestro and Haier want to enter into a long-term, mutually beneficial partnership, by continuously developing innovative digital solutions. Empowered by COSMOPlat, digital solutions can also be applied to the development of customized solutions for diversified polyurethane applications so as to achieve mass customization.

Dr. Michael Schmidt, head of Innovation Asia Pacific at Covestro, leading the R&D team, and John Dou, Vice president of Commercial Operation China, Polyurethanes segment at Covestro, leading the sales team, expect that this innovative cooperation model will further increase synergies between the two companies.

As an important initiative of Covestro's global digital strategy, the lab will focus on developing digital solutions related to polyurethane materials to push forward smart manufacturing in domestic appliance and mass customization in the chemical industry.

About Covestro:

With 2017 sales of EUR 14.1 billion, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. Covestro has 30 production sites worldwide and employs approximately 16,200 people (calculated as full-time equivalents) at the end of 2017.

Find more information at www.covestro.com.
Follow us on Twitter: www.twitter.com/Covestro

Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

This is the goal of "Solar Decathlon China", a student competition for building concepts that use only solar energy. The venue for this year's "Olympic games for solar energy and green building industry," as the organizers call the Decathlon, is the city of Dezhou. It is also known as the "Sun City" because it is at the center of the Chinese solar industry. 22 student teams from 37 universities from around the world will take part in the competition.

With know-how and material solutions, Covestro supports two student groups in the competition – the joint team of Tongji University Shanghai and TU Darmstadt, and the team Shunya of the Indian Institute of Technology in Mumbai.

Megacities as a challenge and opportunity

"The fast-growing megacities in these two countries present particular challenges to population supply, the development of the infrastructure and climate protection," says Dr. Markus Steilemann, CEO of Covestro. "At the same time, local universities and companies often develop the best solutions for global trends such as progressive urbanization."

Therefore, close cooperation with local partners is particularly important: "Together with them, we develop innovative and sustainable material solutions for energy-efficient buildings. On that basis we want to help shape future habitats and make the world a brighter place," says Markus Steilemann.

With such projects, Covestro is committed to achieving the 17 Sustainable Development Goals (SDGs) of the United Nations. Particular priorities are sustainable cities (SDG number 11) and the use of renewable energy (SDG number 7).

Solar Decathlon China: holistic residential solutions in demand

Each team was to design and build a one- or two-story solar house with a floor space of between 120 and 200 square meters. The solution is evaluated according to ten criteria: architecture, market appeal, engineering, communications, innovation, comfort zone, appliances, home life, commuting and energy performance.

On August 17, the winning concept will be announced. After that the area will be turned into a permanent exhibition for sustainable construction and into the first intelligent low-carbon park in China.

Sophisticated construction concepts

The EnergyPLUS Home 4.0 from Tongji University and TU Darmstadt has a modular structure, so that several units can be combined to form an apartment building. Covestro produces transparent and heat-insulating polycarbonate panels for the façade, as well as polyurethane raw materials for water-based, yet water-permeable outdoor floor coatings. They are a perfect fit for new city drainage systems like so-called sponge grounds that soak in water and direct it into piping systems underground.

Mumbai's Shunya team's Solarise concept combines regional architectural principles and includes climatic and cultural aspects. It is a net positive energy solar villa with a floor space of 150 square meters, which is suitable for a family of six people comprising all modern amenities for comfortable and sustainable living. Products from Covestro are used in insulating polycarbonate panels on the roof, in polyisocyanurate insulation panels in walls and floors, and in the coating of the steel framework.

In focus: renewable energies

“With the support of the Solar Decathlon China, Covestro also underlines its commitment to the expansion of renewable energies such as solar and wind power,” says Dr. Christian Haessler, head of Sustainability at Covestro and former head of its Polymer Research and Development Center in Shanghai. The company was the official sponsor of the Solar Impulse project of the pioneers Bertrand Piccard and André Borschberg, who for the first time circumnavigated the earth with a solar-powered aircraft. In addition, students from the RWTH Aachen University, who participated in a self-built solar car at the World Solar Challenge 2017 in Australia, arguably the toughest solar race in the world, were supported.

“Covestro is also involved in expanding wind power, especially in China,” adds Christian Haessler. “Together with partners, we developed a new polyurethane composite for rotor blades of wind turbines. These are more flexible and robust than conventional blades and can be made faster and more economically.”

Worldwide competition for solar construction

The first Solar Decathlon events took place from 2002 in the USA. Later offshoots were also established in other regions. The initiator and organizer continues to be the US Department of Energy. This year's Solar Decathlon China will also be hosted by China's Ministry of Energy and other national authorities.

About Covestro:

With 2017 sales of EUR 14.1 billion, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. Covestro has 30 production sites worldwide and employs approximately 16,200 people (calculated as full-time equivalents) at the end of 2017.

More information can be found at www.covestro.com and www.career.covestro.com.
Follow us on Twitter: https://twitter.com/covestro

Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro’s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.