Covestro products to replace metal usage in tech, auto sectors

Covestro AG, the recently carved out plastic and chemical subsidiary of Bayer AG, is working on innovative products to replace usage of metals in various sectors, including automobiles and IT sector.

Frank H Lutz, Chief Financial Officer, Covestro, told BusinessLine that the company is developing carbon reinforced polycarbonate sheets which will be stronger than steel and can reduce weight by more than half.

To start with, early next year the company will introduce carbon reinforced polycarbonates that would replace metals in computer cases, he said.

The original equipment manufacturers (OEMs) are under intense pressure to reduce carbon footprints that they are open to any suggestions, said Lutz.

The replacement of metal from computer casing will also bring down the cost for consumers as energy plays an important role in determining production cost. The energy that goes into production of aluminium is much higher than producing polycarbonate sheets.

“Though I cannot comment on the production cost of OEMs (computer companies), I can assure that we can produce carbon reinforced polycarbonate at half the cost of aluminium,” he said.

Covestro also plans to licence its new technology to produce polymers on a large scale using carbon-di-oxide as the raw material, instead of crude oil.

Polyols plant Late last month, the company opened the first production plant for polyols (an innovative foam component) made with carbon dioxide at Dormagen, Germany. The plant will use carbon dioxide in the future to manufacture rubber and synthetic fibres.

“A couple of days ago we had our first customer Recticel which said that they will use our polyols to produce mattress and making furniture,” Lutz said.

More importantly, he said, the key raw material carbon dioxide coming out of chimney to produce polyols is for free.

Covestro is focusing on innovative products to overcome the excess production capacity built in the industry in the last few years.

The company sees India playing a key role in its growth with slew of reforms undertaken by the government. The company provides material for key trends like urbanisation, mobility and cooling chains to store food.

Though China accounts for over 50 per cent market share in APAC (Asia Pacific countries), the future growth will come from other countries, especially India.

The overall contribution of China in APAC will become lesser because other markets are growing much faster.

India accounts for 20 per cent of the APAC market. The countries that are competing with India in the APAC market, such as Indonesia and Japan, are not growing that fast, he said.

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