Demand drives new Covestro investment in Shanghai
Materials manufacturer Covestro has broken ground on two new factories in Shanghai. The company said it was building the new plants to meet rising demand for polyurethane dispersions (PUDs) and elastomers.
These new facilities will be located within an existing Covestro site in Shanghai. The new plant for PUDs, as well as a further line for the polyester resins from which PUDs are produced, are due to be complete in 2024. PUDs are used in more environmentally compatible coatings and adhesives for a wide range of applications, including footwear.
In parallel, the new facility for polyurethane elastomers is expected to become operational in 2023. The market for these flexible and durable materials in China and the Asia-Pacific region is growing quickly, Covestro said.
Since 2001, Covestro (formerly Bayer MaterialScience) has invested €3.6 billion in its Shanghai integrated site, which comprises 11 plants and is the largest the company has around the world.
Image shows the start of construction for the new Covestro elastomer plant in Shanghai. From the left: Pinqi Zhang, head of production; Dr Yun Chen, head of Covestro’s integrated site in Shanghai; Jing Ma, chief director of the Shanghai Chemical Industry Park; Holly Lei, president of Covestro China; Simon Chen, head of Covestro’s elastomers segment in Asia Pacific, and Yupeng Li, general manager of contractor China Huanqi.
Credit: Covestro.
