Covestro, one of the world's largest polymer production companies, plans to invest 650-700 million Euros (about 580 crore) to set up a polycarbonate or polyurethane plant to meet growing demand.
Covestro Chief Financial Officer Thomas Toepfer said the new plant will have an annual capacity of 500,000 tons. As demand is strong in all countries, the company will make a site selection decision as soon as possible.
He also said that the company will invest 1.2 billion euros in each of the next three years.
The German company (formerly Bayer MaterialScience) plans to fund capital expenditures through internal accruals.
Toepfer said that revenue and sales growth in the first half of this year has exceeded 2017, and sales in China, the United States and India are also growing rapidly.
Covestro is a leading manufacturer of high-tech polymer materials. It has 30 production bases worldwide and employs approximately 16,200 people.
In India, the company plans to double capacity at the Greater Noida plant by the end of next year. The company produces more than 80 high-performance polycarbonate and polyurethane-based products, as well as precursors for coatings, adhesives, and sealants to meet the needs of different fields such as the automotive and electronics industries.
Great opportunity
Covestro sees a significant opportunity in the production of electric vehicles in India. Compared to the 8 kilograms used by an ordinary car, the use of polycarbonate in electric vehicles will increase by 3-4 times.
The company has signed a memorandum of understanding with the Institute of Chemical Technology to jointly develop a polymer-based material that can replace high-energy-consumption components in refrigerators and poultry sheds.
India has about 6,300 refrigeration facilities with a capacity of 30.11 million tons, but can only store about 11% of the country's total perishable products.
The company plans to develop polyurethane materials that can be used in refrigerators and poultry sheds to maintain the required temperature.