As it continues to focus on its polyurethanes portfolio, German engineering plastics producer Covestro (Leverkusen; www.covestro.com) is selling its 51% share in the JV Pearl Covestro Polyurethane Systems to its co-owner, Pearl Industries Overseas (www.pearl.ae). The company operates its PU systems house business in Dubai / United Arab Emirates. The sale, which Covestro said will generate proceeds in the mid-single-digit million-Euro range, is due to close in the first half of 2021, subject to regulatory approval. The business will operate in the future as Pearl Polyurethane Systems.

The company established under the name BaySystems Pearl in Dubai in 2006 as a JV between then-Bayer MaterialScience (BMS) and Pearl Insulation Materials Industries supplied PU foam systems for several projects in the region (see Plasteurope.com of 07.11.2006). Covestro said it will remain a key supplier of polyurethane raw materials after the sale.

The German company sold its North American systems house business in 2017 and divested its European systems house business to US investment group H.I.G. Capital (Miami, Florida; www.higcapital.com) two years later (see Plasteurope.com of 18.06.2019).

In 2020, Covestro’s core volumes sold in its polyurethanes segment declined 6.1% due to the impact of Covid-19 in the first six months. Full-year PU sales fell by 13.1% to EUR 5 bn (see Plasteurope.com of 26.02.2021).