Covestro and Siemens conclude strategic supplier agreement
Partnership strengthened:
- Agreement simplifies cooperation between the companies
- Framework for all business relationships over the next five years
- Includes Siemens’ full range of services as a supplier to Covestro
Covestro and Siemens have concluded a strategic supplier agreement for the next five years. This framework agreement is the basis for all future business relationships that exist between the two companies in many different areas. The agreement is worth a high double-digit million euro amount and enables much faster and easier collaboration.
Until now, Covestro and Siemens have always concluded individual supply agreements for different material groups and services. The new structure now provides a general framework and serves as the basis for all future contracts and agreements between the companies. It covers the full range of Siemens' offering, from the purchase of materials to the supply of complex solutions, for which Siemens will be involved in the early stages of project development at Covestro.
"With this agreement, we are strengthening our trusting partnership and can now work together even more closely and efficiently," says Thorsten Dreier, Chief Technology Officer at Covestro. "This step makes it clear that we will continue to rely on our partnership with Siemens in the future. Siemens has proven to be a reliable supplier in many projects over the many years of cooperation and therefore we want to continue to work together with Siemens in the future to drive the transformation of the chemical industry towards climate-neutral production and a circular economy."
Axel Lorenz, CEO Process Automation at Siemens, says: "We are very pleased to continue our successful path together with Covestro. In recent years, we have greatly expanded our portfolio for the chemical industry. At the same time, the challenges for sustainable production in the industry have grown significantly. The new agreement takes this development into account and offers a very good basis for implementing innovative ideas together even more easily in the future."
About Siemens:
Siemens AG (Berlin and Munich) is a leading technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, the company creates technology with purpose adding real value for customers. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them to transform the everyday for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a globally leading medical technology provider shaping the future of healthcare.
In fiscal 2023, which ended on September 30, 2023, the Siemens Group generated revenue of €77.8 billion and net income of €8.5 billion. As of September 30, 2023, the company employed around 320,000 people worldwide. Further information is available on the Internet at www.siemens.com.
About Covestro:
Covestro is one of the world’s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Covestro supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Covestro are also used in sectors such as sports and leisure, cosmetics and health, as well as in the chemical industry itself.
The company is committed to becoming fully circular and is striving to become climate neutral by 2035 (scope 1 and 2). Covestro generated sales of EUR 18 billion in fiscal 2022. At the end of 2022, the company had 50 production sites worldwide and employed approximately 18,000 people (calculated as full-time equivalents).
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.