Covestro Launches Largest Global TPU Plant in Zhuhai, China
On January 22, German materials major Covestro officially commissioned a new thermoplastic polyurethane (TPU) production base in the Zhuhai Economic and Technological Development Zone, marking a significant step forward in the zone's drive to build a globally connected high-performance materials cluster.
Construction of the Covestro Zhuhai TPU project began in September 2023. The first phase represents an investment of several tens of millions of euros and will deliver an annual capacity of around 30,000 tonnes, targeting steadily rising demand for multifunctional plastics from sectors including IT, automotive and footwear. The site is planned to cover 45,000 square metres and will be developed in three phases. Once fully completed after 2030, total capacity is expected to reach 120,000 tonnes per year, making it Covestro's largest TPU production facility worldwide.
Covestro is a global leader in high-quality polymer materials and components, supplying innovative solutions that support sustainable development across multiple industries. TPU is a versatile plastic widely used in applications ranging from sports shoes and smartphone cases to robotic vacuum cleaners, smart speakers, automotive paint protection films and wind turbine blade protection.
'The start-up of the Zhuhai site marks another important milestone in the execution of our growth strategy,' said Bai Muni, Chief Commercial Officer of Covestro. 'This investment underscores our commitment to meeting the evolving needs of customers across the Asia-Pacific region while strengthening our position in high-growth markets. With this new facility, we can supply innovative TPU solutions closer to our customers, while enhancing service quality and responsiveness.'
To support the Zhuhai plant, Covestro has also established a TPU application development centre in nearby Guangzhou, creating strong operational synergies. 'Both the Zhuhai production site and the surrounding R&D and application development facilities are equipped with state-of-the-art technologies,' said Dr An Juya, Global Head of Covestro's Thermoplastic Polyurethanes Business Unit. 'By integrating manufacturing, fundamental research and customer-oriented application development within a regional setup, we are better positioned to accelerate innovation.'
Explaining the decision to locate Covestro's largest TPU facility in Zhuhai, Dr An highlighted a comprehensive evaluation process. 'We systematically assessed key criteria, including infrastructure readiness, site scale and future expansion potential, local talent availability, proximity to core customers, and whether the local industrial ecosystem offers a strong foundation for advanced manufacturing and innovation,' She said. 'At the same time, we wanted a base that not only serves China but can efficiently reach the wider Asia-Pacific region and global markets, making efficient port logistics essential. Based on these considerations, Zhuhai emerged as the optimal choice.'
Beyond physical infrastructure, Covestro emphasized the importance of the local business environment. Lei Huanli, President of Covestro China, said the company's confidence in long-term development has been reinforced by sustained government support. 'From initial project discussions and construction to today's successful start-up, the services provided by government authorities at all levels in Zhuhai have been both efficient and supportive,' Lei said. 'They have worked alongside us as true partners, giving us strong confidence in the future.'
Lei added that the Guangdong-Hong Kong-Macao Greater Bay Area offers exceptional innovation momentum. Through the Zhuhai investment, Covestro aims to further anchor its presence in the region, establishing it as a strategic business hub in China alongside Shanghai. 'The new base will strengthen our ability to deliver innovative solutions locally while serving customers across Asia-Pacific. We are proud to act as a reliable partner contributing to China's industrial upgrading and long-term development,' She said.
With the Zhuhai TPU plant now in operation, the Zhuhai Economic and Technological Development Zone is expected to further enhance its new materials industry ecosystem and overall value-chain competitiveness. Looking ahead, the zone plans to continue focusing on priority sectors such as advanced materials, new energy and high-end equipment manufacturing, while improving enterprise services and the innovation environment to attract more high-quality projects and support high-quality growth across Zhuhai and the Greater Bay Area.