Covestro Activates Phase I of New TPU Production Hub in South China, Targeting 30,000 Tons/Year Capacity with Global Largest Site Ambition by 2030s

August 2, 2026

Covestro China

Overview

Covestro has successfully inaugurated Phase I of its new TPU (thermoplastic polyurethane) production site in Zhuhai, South China, establishing an annual capacity of 30,000 tons. This strategic expansion aims to meet rising demand in the Asia-Pacific region, with ambitions for the Zhuhai site to become Covestro’s largest TPU facility globally upon completion of all three phases by the 2030s. The company is simultaneously bolstering its regional R&D and application development footprint to enhance customer support and product delivery.

In Depth

Key Findings

Covestro has successfully commissioned Phase I of its new thermoplastic polyurethane (TPU) production facility in Zhuhai, South China. This new site immediately adds 30,000 tons of annual TPU production capacity, significantly enhancing Covestro’s supply capabilities in the burgeoning Asia-Pacific market. The company aims for the Zhuhai site to become its largest TPU production hub globally upon the full completion of all three planned phases by the 2030s, a strategic move to solidify its market leadership.

Technical / Clinical Details

TPUs are highly sought after for their exceptional flexibility, abrasion resistance, oil resistance, and chemical resistance, finding extensive use in automotive, electronics, sports equipment, and medical devices. The new Zhuhai plant incorporates state-of-the-art manufacturing technologies and automated processes to ensure a stable supply of high-quality TPU products. Covestro is also strengthening its localized R&D centers and application development facilities, enabling rapid delivery of customized solutions tailored to specific customer needs. A key focus will be on sustainable material solutions, expanding the portfolio of eco-friendly TPU products.

Background & Context

The Asia-Pacific region represents one of the fastest-growing markets globally for high-performance polymers, driven by robust economic growth and industrial diversification. China, in particular, with its thriving automotive manufacturing, electronics production, and construction sectors, is witnessing a significant increase in the consumption of high-performance materials like TPU. Covestro’s investment strategically positions the company to capitalize on these market trends, expand its market share through prompt supply and technical support to regional customers, and enhance supply chain efficiency while mitigating geopolitical risks.

Strategic Significance & Outlook

With the phased expansion of the Zhuhai site and the reinforcement of regional R&D capabilities, Covestro anticipates accelerating the growth of its TPU business in the Asia-Pacific market. The company plans to further promote environmentally conscious product development, supporting customers in achieving their sustainability goals through innovative TPU solutions. This initiative is expected to solidify Covestro’s position as a leading company in the high-performance polymer market and establish a robust foundation for long-term growth. It represents a critical strategic investment to maintain global competitiveness in the polymer materials industry.

Source: https://www.covestro.com/en

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