Renewable raw materials for plastics production
Covestro and Neste join forces
Neste and Covestro are starting a strategic cooperation in Europe to promote the use of sustainable raw materials in plastics production. Covestro will be supplied with material from renewable sources to replace a significant portion of the fossil raw materials used to date in the manufacture of polycarbonates. This type of a high-performance plastic is used, for example, in car headlamps, LED lights, electronic and medical devices and automotive glazing.
Over the short term, the collaboration aims to replace several thousand tons of fossil raw materials in the production of polycarbonates with raw materials produced with Neste’s renewable hydrocarbons. Neste produces its renewable hydrocarbons entirely from renewable raw materials, such as waste and residue oils and fats. Thanks to being a drop-in replacement to commonly-used fossil feedstock in the polymers production, Neste’s product is suitable for existing production infrastructures and enables customers like Covestro to produce more sustainable products with consistently high quality using their existing processes.
Promoting the use of sustainable materials
“The polymers and chemicals industries will play a major role in the circular economy and fight against climate change. That is why Neste is committed to supporting the industry forerunners like Covestro on their sustainability journey,” says Neste’s President and CEO Peter Vanacker. “Our collaboration enables Covestro to play a significant role in providing climate-friendlier raw materials to leading brands and help them reach their materials-related sustainability targets. With Covestro, the positive impact provided by Neste’s renewable hydrocarbons is expanded beyond the field of polyolefins, showing the product’s value and compatibility with more complex value chains.”
"With this collaboration we are emphasizing our intention to make our production more sustainable and to drive forward the change to a circular economy. Using alternative raw materials more intensively as we are doing is an important basis for this,” said Covestro´s CEO Dr. Markus Steilemann. "We are fully committed to working with many partners to manage the transition to a circular economy, the great overall social project of the coming years and decades. To this end, we are also cooperating with upstream partners such as Neste to meet our own raw material requirements from renewable sources to an even greater extent. By transforming our production, we are helping important industrial sectors such as the automotive and electronics industries achieve greater sustainability and reduce the dependence on crude oil.”
In the future, both companies intend to expand the scope of their partnership, also with regard to other types of polymers. At the same time, they are inviting other stakeholders along the value chains to cooperate.
Neste (NESTE, Nasdaq Helsinki) creates sustainable solutions for transport, business, and consumer needs. Our wide range of renewable products enables our customers to reduce climate emissions. We are the world's largest producer of renewable diesel refined from waste and residues, introducing renewable solutions also to the aviation and plastics industries. We are also a technologically advanced refiner of high-quality oil products. We want to be a reliable partner with widely valued expertise, research, and sustainable operations. In 2019, Neste's revenue stood at EUR 15.8 billion. In 2020, Neste placed 3rd on the Global 100 list of the most sustainable companies in the world. Read more: neste.com.
With sales of EUR 12.4 billion in 2019, 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 industries 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 17,200 people (calculated as full-time equivalents) as of the end of 2019.
This press 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. These reports are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to make them conform to future events or developments.