Silan, Covestro, digital, e-commerce

Covestro advances strategic cooperation with Silan Group for digitalization

Multiple industrial e-commerce platforms to seize digital opportunities
Nowadays, Internet is being integrated with manufacturing in a broader way, with multiple new business patterns, including data-driven projects, e-commerce platforms and shared manufacturing. Thanks to the combination of next-generation information technology with industrial production and commercial distribution, industrial e-commerce now offers better services to customers, especially small and medium-sized enterprises. Under such a scenario, materials manufacturer Covestro and Silan Group, a Chinese provider of import/export trade services, have entered into a strategic cooperation agreement for digitalization to explore emerging opportunities on industrial e-commerce platforms.

As a strategic partner of Covestro’s Desmodur® T80, Silan has cooperated with Covestro for over two decades. T80 is the main raw material of polyurethane flexible foam, which is widely applied in manufacturing mattresses, pillows, sofas and other soft furniture to offer excellent comfort and support. Based on the strong track record of collaboration, the new strategic partnership for digitalization aims to help further explore digital development in the chemical industry, represented by the polyurethane business.

Explore cooperation in digital transformation for long-term potential

As the first step into the digitalization cooperation and to sell T80 online, Covestro opens a store on Silan’s cloud supply chain management platform - Aperfect this June. Aperfect has expertise in managing and operating digital platforms as it is designed to provide one-stop online sourcing solutions for shoes and clothing businesses, including logistics and financing support to downstream customers. Covestro expects to bring better experience to local customers by taking advantage of this platform’s one-stop services:

• 7*24 online inquiry and order submission;
• Applying online for low-interest loans from Silan;
• Participating in “Spending-based Discount” events offered by Aperfect.

Covestro and Silan Group push on digital strategic cooperation
Covestro and Silan Group, a Chinese provider of import/export trade services, have entered into a strategic cooperation agreement for digitalization to explore emerging opportunities on industrial e-commerce platforms. Picture source: Silan Group
At a press conference held in Jinjiang City, Fujian Province on May 30, John Dou, Vice president, Head of Commercial Operation China, Business Unit Polyurethanes at Covestro, and Zongyin Ding, Chairman of Silan Group, signed the strategic cooperation agreement. Also, Rongzhou Chen, former Vice Mayor of Quanzhou City Government and Deputy Director General of Industry and Commerce Council of Maritime-Continental Silk Road Cities Alliance, delivered a speech.

Silan’s Ding said, “Our long-term partnership with Covestro has been evolving with innovations in different stages. From logistics management for hazard chemicals, sustainability projects, to the strategic cooperation for digitalization, each innovation has come with profound influences on both sides and the industries.”

Embrace digital transformation to drive industry values

Covestro is delivering on digital transformation strategies across global markets, including China, and working with leading Chinese enterprises like Silan to gear up developing new business models in the chemical industry.

At the press conference, Dou from Covestro said, “Digital innovation, represented by industrial e-commerce platforms, has become a significant trend in business-to-business field. And China, as a global leader in digitalization, has contributed a lot of successful experience in digital transformation to the global chemical industry. By enhancing strategic cooperation with our local partners such as Silan in the digital area, Covestro expects to benefit from digitalization, drive up business value and create growth opportunities for local and global chemical industries.”

‘Three Channels’ to foster digital service platform

  The strategic cooperation with Silan will further improve and empower Covestro’s “Three Channels” digital sales service system in China. They refer to three major e-commerce channels: the online platforms of distributor partners, Covestro’s flagship store on of Alibaba, and Covestro’s self-operating online direct selling platform Covestro Direct Store. The three online platforms work together to provide efficient, convenient and customized online sales services for customers in various channels. Covestro hopes to offer customers more efficient and better one-stop polymers purchasing experiences in the future, by expanding cooperation with online platforms and seeking deeper insights into innovative interactive service approaches.

About Covestro:

With 2019 sales of EUR 12.4 billion, 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 segments 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) at the end of 2019.

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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 The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.