MOSCOW (MRC) -- Shortly after doubling its polycarbonate (PC) production capacity at its Shanghai site to 400,000 tons per year, Covestro will again significantly expand its capacity to 600,000 metric tons per year, said the producer on its site.
With this step, which is achieved through debottlenecking of its production lines, the company reacts to the strong customer demand for polycarbonates in the Asia-Pacific region. The expanded capacity shall be available starting 2019.
"The expansion is essential to satisfy the growing demand", said Chief Technology Officer Dr. Klaus Schafer. "The successful completion of this project will strengthen our global production network and demonstrates our continuous commitment to the Chinese market."
Michelle Jou, Global Head of Covestro's PC segment, said, "There is a rapidly growing demand for polycarbonate resins and blends, in particular in China. Segments like electronics, healthcare and automotive are our key customer industries in that region. Further expanding our capacity for this high-tech plastic enables us to even better react to the changing needs of our customers and to guarantee sustainable supply."
Especially lightweight, highly transparent, break-proof and easy to shape, polycarbonate is used in many areas of modern life - from electronic and IT appliances to automotive parts to medical devices and LED lighting. With the capacity expansion of the largest polycarbonate production site in the world, Covestro strengthens its global number one position in polycarbonate resins and intends to supply the volumes it needs to continuously outgrow industry. "We have grown our capacity share continuously in recent years and are committed to continue this path. This investment is one of the steps we do to secure the necessary supply", adds Michelle Jou.
As MRC informed previously, in July 2016, Covestro moved forward with a repurposing of its production operations in Brunsbuttel, Germany. The Board of Management then officially approved an expansion of production capacity for the foam component MDI (feedstock for polyurethane) at the site. An existing, idled plant for the precursor TDI will be converted for production of MDI. The plans call for roughly doubling production capacity at the site to a total of approximately 400,000 metric tpa of MDI. Commissioning of the new plant complex is scheduled for late 2018. Preliminary plans call for a total investment volume (in euros) in the low hundreds of millions, which is already included in Covestro’s medium-term capital expenditure budget.
Covestro (formerly Bayer MaterialScience), wiith 2016 sales of EUR 11.9 billion, is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc.
MRC