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

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

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

Material expertise complementing BYD's cutting-edge applications

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

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

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

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

Building a more sustainable industrial future

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Meeting Performance Standards 

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

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

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

Advancing Circular Economy Goals

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

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

Looking Ahead

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

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

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

A decade of transformation

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

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

People and values at the core

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

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

Celebrating a global community

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

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

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

Looking ahead

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

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

“Trust, fairness, and equality are central values for us as an employer. By publishing salary ranges in our job postings, we demonstrate that we live by these values, take the concerns of applicants seriously, and promote an open and fair dialogue,” says Sophie von Saldern, Global Head of Human Resources at Covestro. The company’s existing workforce also benefits from this transparency, as salary bands are accessible internally.

Benefits for All: Greater Efficiency, Transparency, and Fairness

This new approach goes beyond positioning Covestro as a transparent and fair employer – it fundamentally transforms the entire recruitment process. The initiative was initially piloted in engineering roles, where there is a significant skills shortage. The positive results from the pilot encouraged Covestro to extend the publication of salary ranges to all job advertisements.

“We’re already seeing early indications of increased application numbers. At the same time, the recruitment process is becoming more focused, and we’re receiving positive feedback from candidates. Applicants are assessing themselves within the salary range based on their qualifications and experience, which leads to more efficient and transparent discussions,” reports Dr. Ute Breitsohl, Head of Employer Branding & Recruiting in Germany.

Job seekers benefit from this transparency in several ways: Entry-level professionals gain clear guidance on salary expectations.
Experienced professionals can recognize the value placed on their expertise and directly discuss opportunities for development, including financial ones.
Women, who often undervalue themselves in salary negotiations, benefit from clear salary bands. For all profiles, the disclosure of salary structures allows applicants to immediately determine whether a position is financially attractive and suitable. “Our goal is to create a fair and open basis for discussion right from the start. In this way, we contribute even more to an application process at eye level,” explains Dr. Breitsohl. “The positive response from applicants confirms that our transparent approach creates trust. This enables us to focus more on development prospects and career goals in interviews.”

This initiative strengthens Covestro's position as an attractive employer. At the same time, Covestro is actively sending a signal to the labor market to raise awareness of the gender pay gap. “Only if salary ranges are disclosed transparently and comprehensibly can comparability be achieved across gender boundaries. With this step, Covestro is setting new standards for fairness and equality in the world of work,” Breitsohl continued.

Early Implementation of the EU Pay Transparency Directive

By publishing salary ranges in job postings, Covestro is preemptively fulfilling a requirement that will become mandatory for many companies in Germany by 2026. The forthcoming EU Pay Transparency Directive will oblige employers to disclose salary information during the recruitment process.

Sophie von Saldern, Global Head of Human Resources at Covestro, highlights the strategic intent behind this move: “We see publishing salary ranges not just as preparation for future legal requirements but as a strategic tool to strengthen our employer brand. The collective bargaining agreements in the chemical industry already provide attractive conditions—our additional transparency creates a win-win situation for applicants and our company.”

More targeted applications, positive feedback from departments, fewer time-consuming salary negotiations, and greater fairness: these indicators underline the success of this initiative and Covestro’s leadership role in promoting transparency and fair working conditions.

Interested candidates can find all current job postings with corresponding salary ranges on Covestro’s career page at www.career.covestro.com. The website also provides further information about Covestro as an employer and the diverse development opportunities within the company.

Now, a breakthrough in drug delivery is changing how veterinarians deliver pain medication to dogs and cats. The Mini-Infuser™ Subcutaneous Constant Rate Infusion (SQ-CRI) pump is the first wearable drug delivery device designed for small companion animals, according to RxActuator. By eliminating the possibility of tangled or disconnected IV lines, this device enhances comfort while reducing staff oversight. Additionally, the manufacturer designed this easy-to-use wearable to improve treatment by:

• reducing the risk of medication errors
• allowing animals to maintain mobility during drug delivery
• enabling owners to take their pet home

Polycarbonates meet special requirements

The Mini-Infuser™ pump case features white Bayblend^® T85 XF PC+ABS blend from Covestro. Additionally, clear Makrolon^® Rx1805 polycarbonate in a blue tint is used for the device’s trim. According to Roy Ince, global account manager, healthcare commercial operations – Polycarbonates, Americas, Covestro LLC, these polycarbonate materials are easy to mold and offer good chemical and impact resistance – important attributes for this application.

“With its wealth of materials and technical knowledge, Covestro was able to recommend the right polycarbonate grades to help us create an innovative and dog-proof drug delivery device for the veterinary industry,” said Doug Nutter, chief marketing officer, RxActuator.

Simple and cost-effective solution

According to RxActuator, the Mini-Infuser™ is unique in that it achieves constant and reliable infusion without any electronics. Additionally, it is more cost-effective than a regular infusion pump. The device is distributed by REM Systems in Australia and New Zealand, and sold directly in North America and worldwide by RxActuator.

“We think of our four-legged companions as members of our families, so naturally we want them to be as comfortable as possible when medicine must be administered,” said Lauren Zetts, Americas segment manager, Healthcare – Polycarbonates, Covestro LLC. “We appreciate the opportunity to collaborate with RxActuator on an innovative device that does just that.”

Attendees at MD&M West, February 11-13 in Anaheim, California, can visit the Covestro booth (#2221) to learn how the company’s materials are pushing boundaries in healthcare applications.

Silicon Valley based company Carbon has developed Digital Light Synthesis™ (DLS™) technology, which can accelerate the production of parts up to a hundredfold compared to previous processes. After years of R&D, Carbon developed a novel polyurethane liquid resin suitable for production parts.

Covestro is a key partner in the scale-up and high-volume production of this material. The company invested a significant sum to enable the production in commercial quantity. As a result, joint forces proving mass production viability of the 3D-printing process and the respective material, and this is a current success of the partnership.

Wanted: suitable materials for mass production

"Our biggest challenge in the upscaling of additive manufacturing until series production lies in the supply of suitable materials in the required quality and quantity," explains Patrick Rosso, global head of additive manufacturing at Covestro. "By partnering with companies like Carbon, we are pushing existing scale boundaries and supporting various industries along the value chain on their way to digital mass production.”

Covestro is currently researching materials to enable an extended range of industrial applications. To this end, the company is upgrading laboratories for 3D printing at its Leverkusen, Pittsburgh and Shanghai sites, where it develops and tests material solutions for serial additive manufacturing in collaboration with different customers.

Efficient manufacturing process

DLS™ technology developed by Carbon, is now being used for the first time on a large scale. Similar to stereolithography, the workpiece is created in a vat of liquid plastic resin that is cured by means of UV radiation.

At Carbon’s DLS™ technology, oxygen is supplied from below to counteract the curing and thus creating a liquid dead zone. For this purpose, the bottom of the vessel is made of a light- and air-permeable membrane, similar to a contact lens. Due to this dead zone, the printed part can be pulled continuously upward without the formation of individual layers.

Production using DLS™ technology is up to 100 times faster than with stereolithography – another important prerequisite for industrial mass production. In that context, a proprietary process combines software, hardware and materials. It imparts the desired technical and mechanical properties to the finished parts.

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.