Advancing the circular economy together
Covestro strengthens partnership with China’s Huafon at key trade expo
- Exploring expansion of mass-balanced MDI in Huafon’s portfolio
- New agreement follows joint appearances at China International Import Expo in previous years
Covestro and Huafon Group are taking significant steps to reinforce their commitment to sustainability as they sign a Letter of Intent (LoI) at the China International Import Expo (CIIE). This partnership aims to expand the use of low-carbon materials from the German materials manufacturer within Huafon’s product portfolio, thereby advancing the circular economy.
Under the LoI signed at Covestro’s CIIE booth in Shanghai, both companies have agreed to collaborate closely in developing low-carbon solutions. The objective is to reduce carbon emissions and minimize environmental impact across a range of Huafon’s polyurethane products, which include microfibers, thermoplastic urethanes, shoe soles, artificial leather PU resins, and spandex. This leverages Covestro’s mass balanced MDI, which has a lower carbon footprint thanks to the use of alternative raw materials – based on plant waste – that are attributed to the MDI. It is used for versatile applications in sectors such as footwear, automotive interiors, apparel, and more.
"We are happy to continue our collaboration with Huafon in the pursuit of ever greener and lower-carbon solutions. This is a great example for how we support customers and downstream industries in achieving their sustainable development targets, also in line with China’s climate-neutral ambitions by 2060. Our Letter of Intent shows our strong shared commitment to addressing climate change and fostering a circular economy," said Hermann-Josef Doerholt, Head of the Performance Materials Business Entity at Covestro.
You Feiyu, Chairman of Huafon Group Co., Ltd., echoed this sentiment, stating, “This Letter of Intent signifies our dedication to a more sustainable future. By working closely with Covestro, we aim to create innovative low-carbon solutions that minimize environmental impact while driving industrial progress, and also to jointly promote sustainability on a global scale.”
Building on a history of success
Huafon has been a long-term customer of Covestro, and their partnership has strengthened, particularly in the field of advancing a circular economy, since Covestro’s inaugural participation in the CIIE in 2021—an annual event dedicated to promoting imports into China and fostering international trade and cooperation.
In 2021, during the CIIE, Covestro announced its first commercial order in the Asia Pacific region for its renewable attributed MDI with Huafon Group. Such MDI is made more sustainable through the utilization of alternative raw materials allocated to products via certified mass balancing according to ISCC PLUS. In 2022, Huafon Microfibre joined Covestro and other value chain partners at the CIIE in two collaborative efforts. These aimed to promote the use of low-carbon PU solutions across industries and accelerate the commercialization of circular material solutions in the furniture industry, setting the stage for even deeper cooperation.
For a closer look at Covestro’s solutions for a fully circular future at the CIIE, visit us at booth 3B6-05, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2023.
About Huafon:
Huafon Group is a Chinese Fortune 500 company that focuses on the research and production of high-quality new materials. With the mission of "New Materials, New Life", the company has leading global production capacity and technology in polyurethane, polyamide, bio-based materials, and biodegradable materials. It provides innovative material solutions to customers in multiple industries such as footwear, apparel, green energy, personal hygiene, automotive, transportation and electronics.
Founded in 1991, Huafon Group now has 7 major manufacturing sites based in China, Indonesia and the US and several Technology and Business Offices all over the world. It has more than 18,000 employees globally. Among its over 50 subsidiary companies, 3 are publicly listed in China. Huafon Group has 17 companies selected as China National High-Tech Enterprises, 7 companies (products) selected as "National Manufacturing Champion Enterprises of Individual Industries (Products)", and 5 companies selected as "National Green Factories". Besides, multiple products have been selected as "National Green Design Products".
For more information, visit www.huafeng.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.