Bayer AG has given its MaterialScience business the new name of Covestro.
The new Covestro name will launch in September as Leverkusen, Germany-based Bayer prepares to spin off the MaterialScience unit. It is based on from “a combination of words that reflect the identity of the new company.”
Covestro is set to float on the stock market by mid-2016 and follows last year's announcement that the MaterialScience business would become a separate company.
In a statement, the chemicals giant explained how Covestro gained its name: “The letters C and O come from collaboration, while VEST signifies the company is well invested in state-of-the-art manufacturing facilities.
"The final letters, STRO, show the company is strong. It is strong in innovation, strong in the market and with a strong workforce.”
Patrick Thomas, who is set to be CEO of Covestro, said the spun-off firm represented "a bold new direction and bright future for an innovation-driven polymers company.
“We are a company that is underpinned by strong and experienced management with a proven track record of excellence and full commitment to value creation. We have loyal and dedicated employees with whom we are confident we can build our future success.
“We chose Covestro because it reflects the exciting opportunity we will have to deploy our strengths even more rapidly, effectively and flexibly in the global competitive arena.
“The new name is part of a brand and identity that is the result of listening to our customers, employees and others close to our business, and which reflects our innovation, talent and big thinking."
Thomas said he was "absolutely convinced that our colorful identity and positive vision will help inspire and motivate us on our new path to the future.”
Being a separate business would give the new company greater flexibility to independently pursue its business goals, he added.