Clockwise from top: The Covestro booth at the sixth CIIE. Markus Steilemann, CEO of Covestro. A group photo after the signing ceremony with Huafon Group.

German materials manufacturer Covestro is once again showcasing its latest achievements for circularity while strengthening partnerships at the sixth China International Import Expo in Shanghai, which kicked off on Sunday and will end on Friday. This marks Covestro's third appearance at the expo.

"In the face of global challenges such as climate change, innovative materials like plastics are needed more than ever to drive progress toward a truly sustainable future," said Markus Steilemann, CEO of Covestro. "China, with its ambitious climate targets, is a leader in dynamic markets like electric vehicles and renewable energy. We are eager to contribute our material expertise to aiding the nation's transition, while driving fresh business momentum."

The unique platform provided by the CIIE has enabled the company to forge deeper partnerships across related key sectors, solidifying its role as a trailblazer advocating for a circular economy and climate neutrality in the industry. In particular, it serves as a springboard to help Covestro develop tailor-made solutions to support China's green transformation.

For example, in a strategic move to support China's ambitious climate objectives, Covestro has forged partnerships with major Chinese property developers, including Shanghai Pudong Development (Group) Co, or PDG Group, and Shanghai Lujiazui (Group) Co, as well as key industry collaborators at the CIIE. Their shared objective is to advance sustainable, energy-efficient solutions in construction, capitalizing on Covestro's material expertise, especially in polyurethanes. These endeavors closely align with China's stringent energy goals in the construction sector, addressing the urgent challenge of buildings contributing to more than half of the nation's carbon emissions.

As the inventor of polyurethanes, Covestro boasts a portfolio of insulation material solutions renowned for exceptional thermal and weather resistance. Initially used in refrigeration, they are now increasingly recognized for their vital role in enhancing energy efficiency in construction.

One of the collaborations involves PDG Group and insulation integration specialist Collodin, working on an innovative polyurethane exterior wall insulation system designed to be thinner and lighter than conventional alternatives. This groundbreaking system combines polyurethane insulation with low thermal conductivity and a lightweight non-combustible layer, reinforced by composite tie bars, ensuring superior insulation. A comprehensive study will evaluate its energy efficiency, safety, and economic viability before implementation on the developer's future projects, provided it meets all compliance conditions, the company said.

Covestro also signed a letter of intent with China's Huafon Group at the CIIE to reinforce their commitment to sustainability. This partnership aims to expand Covestro's use of low-carbon material methylene diphenyl diisocyanate, or MDI, within Huafon's product portfolio, which includes microfibers, thermoplastic urethanes, shoe soles, artificial leather polyurethane resins and spandex.

"This is a great example for how we support customers and downstream industries in achieving their sustainable development targets, also in line with China's climate-neutral ambitions by 2060," said Hermann-Josef Doerholt, head of the performance materials segment at Covestro. MDI, used in the production of polyurethanes, can be found in a wide range of end products in people's day-to-day life, such as backpacks, shoes and clothes, said Doerholt in an interview at Covestro's booth, adding he expects more applications of such low-carbon materials to be brought to China, where the country is pursuing its dual carbon goals.

Covestro's CIIE booth, under the banner of "Becoming Fully Circular and Climate Neutral", features multiple dedicated areas, including "Beyond Mobility", "Green Home", and "Renewable Energy", showcasing the pivotal role of sustainable materials in these sectors.

Recycling technologies

The "Fully Circular" zone demonstrates the company's advancements in recycling technologies and in the use of alternative raw materials. Notably, it is displaying for the first time in China a recycled foam created through the company's proprietary chemical recycling process. This groundbreaking process is capable of transforming end-of-life mattress foam directly into its core building blocks, breathing new life into old foam.

The polymer maker also set up a "Covestro Story" area to engage CIIE visitors, particularly those outside the chemical industry.

Overall, the company considers the CIIE a highly rewarding event and ideal platform to forge partnerships and advance progress in sustainability.

"The CIIE has consistently proven to be a highly rewarding endeavor for Covestro. It offers a unique platform to strengthen partnerships and promote our approach to becoming circular and how we can support downstream industries to do the same," said Holly Lei, president of Covestro China. "We are committed to delivering versatile solutions and exploring innovative business models in collaboration with value chain partners both within and beyond the CIIE venue, in support of China's sustainable development," she added.

Bonds with China

Over the decades, Covestro has fostered an exceptional level of collaboration with China, spanning a wide spectrum of business operations that encompass research and development, manufacturing and sales. By the end of 2022, the company's investment in China totaled 3.9 billion euros ($4.12 billion). And China is one of Covestro's largest markets, accounting for 20 percent of its global sales.

Shanghai is home to the company's largest production site as well as its Asia Pacific Innovation Center and the global headquarters of its engineering plastics division. In recent months, several new production facilities have been launched at the production site, including the company's first dedicated mechanical recycling polycarbonate compounding line.

Meanwhile, in Zhuhai of South China's Guangdong province, Covestro recently began construction on what will become the company's largest production site for thermoplastic polyurethanes. TPU is a versatile material widely used in applications like footwear and consumer electronics for which Guangdong is a major manufacturing hub.