Covestro, one of the world’s largest polymer companies, plans to invest €650-700 million (about ₹5,800 crore) in setting up a polycarbonate or polyurethane plant to cater to the growing demand.

Thomas Toepfer, CFO, Covestro AG, told BusinessLine that the new plant will have an annual production capacity of five lakh tonnes. The decision on the location will be made soon as the demand in all countries is strong.

Going ahead, he said the company will invest annually €1.2 billion for the next three years.

The German company, formerly known as Bayer MaterialScience, plans to fund capex from internal accruals.

Toepfer said the revenue and volume growth in the first half of this year has already crossed that of 2017 with volumes in China, the US and India on a gallop.

Covestro, which manufactures high-tech polymer materials, has 30 production facilities worldwide, and employs about 16,200 people.

In India, the company is in the process of doubling capacity at Greater Noida by end of next year. It produces over 80 high-performance polycarbonate and polyurethane-based products besides precursors for paints, adhesives and sealants that cater to different sectors including automotive and electronics.

Major opportunity

Covestro sees major opportunity in electric vehicle production in India as usage of polycarbonate material will go up 3-4 times compared to eight kg in a normal vehicle.

The company has signed a Memorandum of Understanding with the Institute of Chemical Technology to develop polymer-based material that can replace high energy consuming elements at cold storages and poultry sheds.

India has about 6,300 cold storage facilities with a capacity of 30.11 million tonnes, which are only able to store about 11 per cent of the country’s total perishable produce.

The company plans to develop polyurethane materials that can be used in cold storages and poultries to maintain the required temperature.

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