Creating value by focusing on customer needs
Covestro decides to exit formulated polyether polyols business for the appliance industry in China, India and ASEAN
- Part of portfolio optimization for the ‘Tailored Urethanes’ Business Entity
- Appliance remains a key industry for Covestro, company will continue to supply high quality MDI for it
Covestro has announced a portfolio adjustment to its Tailored Urethanes business for the appliance industry in Asia Pacific excluding Japan in response to the evolving customer behavior in the region.
Polyurethane is an important thermal insulation material for refrigerators and cooling devices. Covestro is currently providing customers in the appliance industry with two-component polyurethane as a system solution that combines formulated polyether polyols (PET) and isocyanates (MDI).
Recent market analysis shows that most regional appliance customers now tend to buy the two components PET and MDI separately. Based on the changing needs of the appliance industry, the company has decided to exit the PET portion of the business in Asia Pacific (except Japan) by the end of 2022. The company’s approach towards appliance industry in Asia Pacific will not affect the business in Europe and North America.
The appliance industry will continue to remain a key segment for Covestro’s business in Asia Pacific. Following the portfolio optimization, Covestro, as a reliable supplier, will continue to sell the MDI component to the appliance industry in China, India and ASEAN.
Globally, Covestro continues to stay committed to other customer segments in polyurethanes with its system solution approach. In Asia Pacific specifically, Covestro will continue to focus on customer needs in the polyurethane system applications in automobiles, wind blades, pultrusion and reefer containers where tailored solutions and system supply are still valued by customers.
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 aims to become climate neutral by 2035 (scope 1 and 2). Covestro generated sales of around EUR 15.9 billion in fiscal 2021. At the end of 2021, the company had 50 production sites worldwide and employed approximately 17,900 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.