Covestro Launches Major TPU Production Site in Zhuhai China

• Covestro has begun TPU production at its new manufacturing site in Zhuhai, China
• Phase one will add about 30,000 tons of annual capacity backed by a major investment
• The site will expand in three phases to reach up to 120,000 tons per year in the 2030s
• Nearby R&D and application centers in Changhua and Guangzhou will support customer-focused innovation
• The plant will produce “CQ” TPU using at least 25 percent alternative, non-fossil raw materials

Covestro has started production at its newly built thermoplastic polyurethanes manufacturing site in Zhuhai, located on the southern coast of China. The first phase of the project, backed by a mid-double-digit million-euro investment, will deliver around 30,000 tons of TPU each year. This new output is expected to support rising demand for the material across several fast-growing sectors, including consumer electronics, automotive manufacturing, and footwear.

The Zhuhai facility was first announced in 2023 and represents an important move in Covestro’s region-focused expansion strategy. By building production capacity closer to customers in Asia Pacific, the company aims to strengthen its Solutions and Specialties business while improving supply reliability and service responsiveness in key industrial markets.

The development will take place over three phases on a site spanning 45,000 square meters. Once fully completed in the 2030s, total annual capacity is projected to reach 120,000 tons, making Zhuhai Covestro’s largest TPU production site worldwide. The scale of the expansion highlights the company’s confidence in long-term market growth for high-performance plastics in the region.

Covestro is also building a broader network of regional support around the site. The Zhuhai plant will be complemented by a TPU research and development center in Changhua and a new application development center in Guangzhou. Together, these facilities will connect production with technical expertise and customer-driven innovation, allowing Covestro to respond more quickly to industry-specific needs across South China.

The company sees Zhuhai as part of its wider commitment to China’s industrial transformation and sustainability goals. The project strengthens Covestro’s footprint in Guangdong and the Greater Bay Area, alongside its existing strategic base in Shanghai. This positioning supports localized innovation and supply while ensuring closer collaboration with manufacturers throughout Asia.

A notable feature of the site is its capability to produce TPU under Covestro’s “CQ” label. These materials contain at least 25 percent alternative, non-fossil raw materials, helping customers lower the carbon footprint of finished products. This is especially valuable in sectors such as electronics, where sustainability requirements are becoming increasingly important worldwide.

By combining new large-scale production capacity with advanced regional research and application development, Covestro’s Zhuhai investment reflects a long-term strategy focused on innovation, customer proximity, and more sustainable material solutions for growing Asian markets.