To meet the rapidly growing market demand in China and the Asia-Pacific region! Covestro’s new Shanghai elastomer plant starts production

● The total investment amounted to tens of millions of euros

Elastomer an important step in the global investment layout of the business

● The product can be used in offshore wind power, photovoltaic panel manufacturing and other fields

at Covestro The new polyurethane elastomer factory in the Shanghai integrated base has been officially put into operation, aiming to meet the growing demand for elastomer materials in the Asia-Pacific market, especially in the field of renewable energy.

On August 8, 2023, Covestro held the opening ceremony of the new elastomer factory at the Shanghai Integrated Base: (from left) Chen Min, Director of Asia Pacific of Covestro Elastomer Division, Chairman of Shanghai Kaizhong Material Technology Co., Ltd. Yang Jiangang, Yuan Quan, Party Secretary of Fengxian District, Shanghai, Lei Huanli, President of Covestro China, Dr. Bai Tuowen, Global President of Covestro Elastomer Division, Ma Jing, Party Secretary and Director of Shanghai Chemical Industry Park Management Committee, Shanghai Chemical Industry Jin Jian, Secretary of the Party Committee and General Manager of District Development Co., Ltd., and Dr. Chen Yun, General Manager of Covestro Shanghai Integrated Base

Covestro announced that its new Shanghai polyurethane elastomer factory has officially started production. The factory started construction in Covestro's Shanghai integrated base in July last year, with a total investment of tens of millions of euros. This is one of the company's series of elastomer raw material investment projects around the world in recent years. Previously, Covestro has expanded related production capacity in Thailand and Spain. The new Shanghai plant is designed to meet the growing demand for elastomeric materials in the Asia-Pacific market, especially in the field of renewable energy. For example, the material can be used in submarine cable protection, and cutting equipment for photovoltaic silicon wafers.

"We provide material solutions for the global road to zero carbon and circular economy. The new Shanghai factory is a vivid interpretation of this, and its products will support customers to meet the market demand for renewable energy solutions solutions,” said Sucheta Govil, Chief Commercial Officer of Covestro. Elastomers that contribute to the sustainable development of many industries.”

Shanghai The elastomer materials produced in the factory can be widely used in various end products. For example, in the offshore wind power industry, submarine cable protection is an important application field of elastomer materials. In addition, elastomers can also be used in the manufacturing process of photovoltaic panels, or Used as a screening material in the mining industry.Elastomeric materials developed in close cooperation with customers have excellent abrasion and tear resistance to withstand the harsh environmental conditions found in these applications.

Dr. Thomas Braig, Global President of Covestro Elastomers Division, said: "We want to support the growth of our customers and actively participate in the growth of key industries. We expect the growth of the elastomer market The growth rate of China’s GDP will be higher than that of China, and we look forward to helping our customers seize this business opportunity. This is why our elastomer business has made a series of investments around the world, including the latest Shanghai factory.”

The new factory is the 12th factory in Covestro's integrated base in Shanghai. The Shanghai base started construction in 2001 and is the largest comprehensive production base of Covestro in the world. By the end of last year, the accumulated investment in the base had reached about 3.7 billion euros.

Huanli Lei, President of Covestro China, said: "Covestro takes the realization of comprehensive circularity as its vision, and aims to achieve climate neutrality in operations by 2035, which is in line with China's 'double carbon' goal. Fit. With the continuously enriched product portfolio of Covestro’s integrated base in Shanghai, we can provide material solutions such as elastomers for many fields including renewable energy, thereby contributing to the sustainable development of China and other markets important contribution."

Shanghai Integrated Base is one of the Covestro production bases certified by ISCC PLUS mass balance. This means its ability to supply mass-balanced materials with a share of renewable raw materials. By using mass balance products, customers in downstream industries can reduce their carbon footprint without having to modify their production processes. At the same time, in order to make circular solutions in the product portfolio more visible to customers, Covestro has launched a brand concept called "CQ" (Circular Intelligence), which is used to identify products with at least 25% of alternative raw materials.

In addition, Covestro also announced that the elastomer business has officially launched its Alibaba 1688 flagship store, providing a full range of elastomer products through the online platform to better meet customer needs and improve the procurement experience.