Polyurethanes and polycarbonate specialist Covestro (Leverkusen, Germany; www.covestro.com) is joining the list of European companies tightening their bonds with China. The engineering resins producer plans to build its largest-ever thermoplastic polyurethanes (TPU) plant in the Zhuhai Gaolan Port Economic Development Zone in the Guangdong province, from where it said it would supply Europe, North America, and Asia.

Andrea Maier-Richter, head of the company’s TPU business, said the new Chinese facility will enable Covestro to be close to its customers and the value chains in the IT, consumer electronics, footwear, and other industries. The majority of the TPU market, as well as its growth prospects, are in Asia and particularly in China, she noted.

Budgeted to cost a “low triple-digit million” sum, the company’s biggest investment in this business to date will take shape in three stages up to 2033. Toward an end-capacity of 120,000 t/y, the first 30,000 t/y unit is due to be mechanically completed in late 2025.

Related: Covestro plans expansion of TPU film capacity in Germany

The TPU complex foreseen to use the “most advanced” production technologies is planned to operate entirely on (unspecified) “green” power, Covestro said. Output will encompass injection moulding grades for footwear and a wide range of IT devices, as well as extrusion grades for cables, hoses and tubes, or automotive applications.

An innovation centre that enables researchers to design customised material formulas on-site as well as performing formula adjustment to meet customer demands within “very short cycles” is also to be part of the project. Covestro said the centre will support the broadening of the product selection under its recently introduced sustainable CQ product line. Products bearing this label must consist of at least 25% alternative, non-fossil raw material.