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Covestro aligns with sustainable development in China

By Yuan Shenggao | China Daily | Updated: 2024-11-08 14:48
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Covestro CEO Markus Steilemann welcomes German Chancellor Olaf Scholz at the Covestro Asia-Pacific Innovation Center in Shanghai in April. [Photo provided to China Daily]

Chancellor's visit

Covestro's commitment to net-zero emissions took center stage at the company's CIIE exhibit, impressing prominent visitors such as Pit Heltmann, then consul general of Germany in Shanghai. The German consulate general later played a key role in facilitating German Chancellor Olaf Scholz's visit to Covestro's Asia-Pacific Innovation Center in Shanghai during his state visit in April.

The Scholz-led delegation explored Covestro's extensive research and development work in China, which is focused on dynamic sectors such as electric vehicles, wind energy, photovoltaics, consumer electronics and construction. As those sectors increasingly embrace circular economy practices, the Covestro innovation hub has become a pivotal force in supporting China's green transformation and driving progress toward a fully circular global economy.

The company's alignment with China's dual carbon goals is evident in specific initiatives like its dedicated mechanical recycling compounding line for polycarbonates in Shanghai. The line, located at Covestro Integrated Site Shanghai — the company's largest production site — produces more than 25,000 metric tons of premium polycarbonates and blends with recycled materials annually. It is meeting the growing demand for post-consumer-recycled plastics in sectors including electrical and electronic products, automobiles and consumer goods.

In addition, Covestro is collaborating with German federal enterprise GIZ and automotive value chain partners — including Nio, Volkswagen China, Chinese recycler GEM, and certification agency TüV Rheinland — on pioneering car-to-car closed-loop plastics recycling. The initiative aims to create an efficient and sustainable automotive recycling system, advancing the industry's green transformation.

Sustained presence

With cumulative investments exceeding 4 billion euros ($4.31 billion), Covestro has consistently strengthened its presence in China. The company's Shanghai site, its largest worldwide, houses 12 advanced plants that cover all core Covestro products, with renewable energy covering more than 40 percent of the site's power needs. And its Shanghai regional headquarters, expanded in 2020, serves as global headquarters for engineering plastics and Asia-Pacific headquarters for other business units and corporate functions, underscoring China's strategic role in Covestro's overall growth.

In Guangdong province, Covestro is constructing its largest thermoplastic polyurethanes production site in the coastal city of Zhuhai to cater to industries such as sports footwear, IT devices and automotive applications. The first phase of the site is expected to reach mechanical completion next year. Additionally, in September, Covestro announced plans to establish a new TPU APAC application development center in nearby Guangzhou, marking the company's second TPU-related investment in China in a short span and positioning it even closer to customers.

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