Covestro breaks ground on new Shanghai plants to meet PUD demand

SHANGHAI—German materials manufacturer Covestro A.G. has broken ground on two new plants in Shanghai to meet the rising demand for polyurethane dispersions (PUDs) and polyurethane elastomers.

The new facilities, which represent a combined investment of "a mid-double-digit million euro amount," will be located within the Covestro integrated site in Shanghai, the company announced July 8.

"These projects will contribute to the high-quality and sustainable development in China and beyond," said Holly Lei, president of Covestro China.

"They will also add to the scale and strength of our Shanghai site, which will be playing a key role in the quest of Covestro to becoming operational climate neutral by 2035."

Covestro expects the new facility for polyurethane elastomers to become operational by 2023 and supply to the offshore wind, solar energy and material handling industries.

According to the supplier, the market for the flexible and durable elastomers in China and the Asia-Pacific region is growing "faster than both gross domestic product and downstream industries."

"The new facility for polyurethane elastomers will ensure that we have a strong capacity to meet the needs of our customers"" said Simon Chen, head of Covestro's elastomers segment in the Asia-Pacific.

The new plant for PUDs, as well as a further line for polyester resins, from which PUDs are produced, are due to be completed in 2024.

PUDs are used in more environmentally compatible coatings and adhesives for a wide range of applications, including automotive, construction, furniture, footwear and packaging.