Covestro closes sale of joint venture shares in Dubai systems house
Systems house business of Covestro fully divested
Covestro has successfully completed the sale of its 51 percent share in the joint venture Pearl Covestro Polyurethane Systems FZCO in Dubai (United Arab Emirates), effective as of July 26, 2021. The proceeds are in the mid-single-digit million euro range. The shares were sold to former co-shareholder Pearl Industries Overseas Ltd., which will continue to operate the systems house business as Pearl Polyurethane Systems. Covestro remains the key supplier of polyurethane raw materials based on the contract signed.
With the successful closure of this transaction, Covestro has now fully divested its system house business. The divestment is part of the company's ongoing portfolio optimization. Covestro already sold its North American systems house business in 2017. This was followed in 2019 by the sale of the European systems house business with sites in the Netherlands, Denmark, Spain and Germany, as well as further businesses in Italy.
About Covestro:
With 2020 sales of EUR 10.7 billion, Covestro is among the world’s leading polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative, sustainable solutions for products used in many areas of daily life. In doing so, Covestro is fully committed to the circular economy. The main industries served are the automotive and transportation industries, construction, furniture and wood processing, as well as electrical, electronics, and household appliances industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. At the end of 2020, Covestro has 33 production sites worldwide and employs approximately 16,500 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.