Covestro: Taking root in China to serve the global engineering plastics market

On July 1 this year, the reorganization of Covestro's organizational structure took effect
.

Based on the guiding principle of fully embracing the corporate vision of a circular economy, the company has formed 7 business units to promote the implementation of its new "sustainable future" strategy

Based on China and close to the market

Based on China and close to the market Based on China and close to the market

Wang Li said: “As a German company, Covestro established the global headquarters of a business unit in China ten years ago.
This shows that Covestro is very optimistic about the Chinese market and attaches great importance to its layout and long-term development in the Chinese market
.

"China is currently the largest single market for Covestro's engineering plastics business unit, and will account for approximately 40% of Covestro's global engineering plastics share in 2020

Currently, the entire business department management team is in Shanghai
.

Wang Li said: "From the perspective of upstream and downstream, most of the future growth momentum and potential of engineering plastics are in China

Covestro recently obtained ISCC PLUS quality balance certification, a certification system that promotes the sustainable development of circular economy globally
.

Obtaining the certification means that Covestro has the MDI supply capability to provide downstream customers with alternative raw materials to produce high-performance polycarbonate and polyurethane in the Asia-Pacific region

Focus on automotive innovation and R&D

Focus on automotive innovation and R& DFocus on automotive innovation and R&D

Wang Li believes that automobiles are one of the main business areas of engineering plastics
.

The development of the automobile industry will bring many opportunities for the engineering plastics business

The innovative R&D of the Covestro Engineering Materials Division focuses on automobiles, which is an important connotation of the strategic development of the division
.

Aiming at the lightweight of automobiles, the business unit uses high-performance carbon fiber composite materials as alternative materials, which are light in weight, strong in impact resistance, and comparable to metal materials such as steel, providing a good solution for realizing automobile lightweight

However, some downstream customers have taken a fancy to Covestro's innovative products
.

Covestro, SAIC and its downstream supplier Tiancheng Automation have jointly developed a mass-produced thermoplastic carbon fiber car seat

Change roles to focus on dual carbon

Change the role to focus on double carbon Change the role to focus on double carbon

Wang Li emphasized that this strategic reorganization helped the business unit to transform its role from the original raw material manufacturer to a more focused solution supplier
.

This role change requires the development of the business unit to shift from the original investment and expansion of mass production to focusing on R&D and innovation, from simply selling products to providing solutions and technical support for customers

She further explained that under the "dual carbon" goal, the business unit's value to customers is not only to provide customers with raw materials, but to provide them with targeted carbon reduction solutions
.
This is the goal that the Engineering Plastics Division will strive for next, and it is also a requirement for the implementation of the circular economy
.
Of course, in the initial stage, focusing on R&D and innovation will not show obvious economic and social benefits, but this is inevitable in the process of qualitative change
.
As R&D accumulates to a certain level, a qualitative leap will appear
.
By then, this transformation will not only promote the rapid development of Covestro itself, but also create more and higher value for corporate customers
.

Wang Li added: “Achieving a circular economy is much more complicated than building a new PC factory, because it not only requires the integration of upstream and downstream resources, but also the implementation of the closed-loop concept of the circular economy.
This is not an easy task
.
The goal of the business unit In the next five or ten years, we will find the right partners, use our own technological advantages, and work with them to innovate and develop to realize a circular economy
.
"