Covestro has officially begun production at its new thermoplastic polyurethanes (TPU) manufacturing site in Zhuhai, southern China, marking a major expansion of its production network in Asia. 

 

The first phase of the project, backed by a mid-double-digit million-euro investment, will deliver around 30,000 tons of TPU per year to meet rising demand from sectors including IT, automotive and footwear.

 

First announced in 2023, the greenfield site is a cornerstone of Covestro’s region-for-region strategy and its push to grow the Solutions & Specialties business. Spanning 45,000 square meters, the Zhuhai complex will be built out in three phases, with total capacity expected to reach 120,000 tons annually in the 2030s—making it Covestro’s largest TPU production facility worldwide.

 

“The inauguration of our Zhuhai site represents a pivotal moment in Covestro’s growth strategy. This investment demonstrates our commitment to meeting the evolving needs of our customers across Asia Pacific while strengthening our position in high-growth markets,” said Monique Buch, Chief Commercial Officer of Covestro. 

 

“The facility will enable us to deliver innovative TPU solutions closer to our customers, enhancing our service capabilities and responsiveness.”

 

The new plant is closely integrated with Covestro’s regional innovation network, including a TPU R&D Center in Changhua and a newly established TPU application development (AD) center in nearby Guangzhou. Together, the three facilities combine production, research and customer-focused development to accelerate innovation and improve speed to market across the region.

 

“The site as well as the nearby R&D and AD capacities are state-of-the-art. Our site in Zhuhai furthermore significantly expands our global TPU production network and reinforces our strong market position in TPU in the region,” said Dr. Andrea Maier-Richter, Head of TPU at Covestro. 

 

“With our integrated regional setup combining production, fundamental research and customer-focused application development, we’re well-positioned to drive innovation and deliver tailored solutions that meet the specific requirements of diverse industries located in south China, like automotive, consumer electronics to footwear.”

 

Covestro also positioned the investment as a long-term commitment to China and its industrial development priorities, particularly in the Greater Bay Area.

 

“The Zhuhai site underscores Covestro’s long-term commitment to China and aligns with the country’s high-quality development and sustainability agenda. This investment further establishes Guangdong, with a particular focus on the Greater Bay Area, as Covestro’s strategic hub in China along with Shanghai, enabling us to deliver innovative solutions locally while supporting customers throughout Asia. 

 

"We’re proud to contribute to China’s industry transformation and development as a reliable partner,” said Covestro China President Holly Lei.

 

In addition to scale and proximity, the site strengthens Covestro’s sustainability offering. 

 

The Zhuhai facility can produce TPU labeled “CQ,” which contains at least 25 percent alternative, non-fossil raw materials. These materials help customers reduce the carbon footprint of finished products—an increasingly critical factor in industries such as electronics, where sustainability expectations continue to rise.