Covestro Completes New PUD Facility
Material solutions manufacturer Covestro recently finished construction on a new polyurethane dispersion production facility in Shanghai, China. The site is expected to begin full operations in the first quarter of next year, producing waterborne PUDs and other grades with more circular content.
According to Covestro’s release, the new capacity is also anticipated to address the increasing demand for environmentally compatible coatings and adhesives in Asia Pacific, serving industries ranging from automotive, construction, furniture to footwear and packaging.
“With this new facility we aim to offer the broadest portfolio of PUDs to support the sustainability efforts of downstream industries here in Asia Pacific,” said Dr. Thorsten Dreier, Chief Technology Officer of Covestro, at an event in Shanghai marking the mechanical completion of the plant.
“The modular concept adopted in the construction phase will also enable us to implement future investment projects and build up capacity more efficiently to capture market demand.”
The plant is reportedly housed in the Covestro Integrated Site Shanghai (CISS), built with modular construction methods that were transported to and assembled at the final site. The company explains that this approach helped to shorten the total lead time, while making the production more efficient.
“With this additional PUD capacity, we are meeting and driving the trend for sustainable, waterborne coatings and adhesives in Asia Pacific, reinforcing our commitment to customers in this region,” said Dr. Thomas Roemer, Head of Business Entity Coatings and Adhesives at Covestro.
“Our ongoing dedication to sustainability and circularity enables us to provide our customers and partners with even better access to more sustainable solutions that at the same time offer comparable performance to classic, solvent-based products. This enables us to actively promote widespread adoption of environmentally compatible alternatives.”
According to the company, to help customers reduce their carbon footprint, more circular PUDs will be offered from the Shanghai plant with a share of biobased or biocircular raw materials. CISS received its ISCC PLUS certification in 2021, which allows it to supply mass-balanced products in large volumes.
In addition to the facility opening, Covestro introduced the suffix “CQ” for “Circular Intelligence,” which identifies products containing a minimum of 25% alternative raw materials.
Covestro broke ground on the new facility and an additional facility in Shanghai for elastomers in August last year. The new facilities reportedly represented a combined investment of a mid-double-digit euro amount.