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.

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.

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 has developed and tested a wide range of polycarbonates and -blends with specific grades to meet the FST performance required by railway and aviation applications. Furthermore, the company is currently developing a range of lightweight thermoplastic composite solutions under the brand name Maezio™. EconCore has developed and patented a unique manufacturing process to produce ultra-light honeycomb structures in an economic way, with a high variety of material combinations that can be fine-tuned in order to meet customers’ needs.

Meeting different requirements

Goal of the two companies’ collaboration is to optimize the FST performance of honeycomb panels in order to meet different application requirements. This shall be achieved by selecting the right combination of polycarbonate grades and composites for the honeycomb core and skin and at the same time adapting the parameters within EconCore’s honeycomb technology.

The results of preliminary FST tests, carried out by an independent institute on semi-finished, laminated honeycomb panels, are very encouraging: already at this early stage of development, sandwich-panels with different material and technology combinations have been produced and evaluated, fulfilling critical tests of EN45545 or FAR25.853 standards for various applications. Currently, the positive results of the preliminary FST tests are being verified in detailed investigations of different material combinations.

Fully integrated, continuous production

Ultimate goal of the joint development is to provide sandwich panels that fulfill the technical requirements, offer weight advantages and show better economics compared with currently used composite or metal solutions. The manufacturing process developed and patented by EconCore offers significant cost saving potential due to a high-speed and fully integrated continuous production process, where thermoplastic polymers are directly converted into a honeycomb structure and where, in addition, the sandwich skin layers can be immediately laminated onto core.

“The outstanding manufacturing process of EconCore allows tailoring our materials into lightweight sandwich panel solutions for our customers,” said Klaus Kraner, responsible for mass transportation applications in the Polycarbonates segment at Covestro. “The sandwich technology of EconCore is especially interesting for lightweight applications Covestro is targeting with Maezio™,” added Arne Böttcher, responsible for market development of the Maezio™ brand in the EMEA region.

“After succeeding in other application domains, we have decided to address inquiries of the higher end markets. The process has been proven to work very well with a wide range of thermoplastic materials, including these with FST chemistry, while EconCore’s technology has demonstrated its capability of delivering high-performance sandwich panels at high efficiency and cost levels not achievable with conventional methods,” said Tomasz Czarnecki, COO of EconCore N.V.

Finished parts in one shot

Tomasz Czarnecki adds, “We look forward to this new development and to continuing the partnership with Covestro. The polycarbonate-portfolio of our partner, combined with the composite solutions of Maezio™, provides us with the variety and quality of materials needed to meet the high technical requirements in mass-transportation markets. This journey is not only about making thermoplastic honeycomb cores. Imagine the potential benefits for the aerospace industry, if it had the option to thermoform sandwich panels into finished parts in a one-shot operation. The industry, already inclining to monolithic thermoplastic composites, has not seen such a change for decades.”

You are cordially invited to visit Covestro (booth no. L5/H5) and EconCore (booth no. R83/H6) at the forthcoming JEC World 2019 exhibition for more information.

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.

About EconCore:

EconCore provides technology for the continuous production of honeycomb sandwich materials. The fast, versatile, continuous ThermHex process allows users to produce sandwich materials for various applications including automotive, transportation, building and construction, industrial packaging, photovoltaics, furniture and many others at minimal cost, weight and environmental impact. Several licensees of EconCore over the world operate the honeycomb sandwich panel production technology supplying performing sandwich to different markets. For more information, please visit www.econcore.com.

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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.