Covestro adding PC compounding in US, exploring markets in electronics

Materials maker Covestro has announced a major expansion at a U.S. compounding plant, as well as a collaboration with technology firm Wistron NeWeb Corp. Both projects are related to polycarbonate.

In Hebron, Ohio, Covestro will invest "a low triple-digit-million euro amount to expand its site," officials with the Leverkeusen, Germany-based firm said in a Jan. 8 news release. Covestro will build multiple new production lines and infrastructure to make customized PC compounds and blends at the site.

The expansion will create 24 new jobs for Covestro and 10 for third-party firms for a total job gain of 34, a Covestro spokesman said. The site, which opened in 1979, currently employs 145.

Chief Technology Officer Thorsten Dreier said the investment "is an important component of our sustainable growth strategy." He added that, with the expansion, Covestro "can meet our customers' growing demand for specialized [PC] materials … and strengthen our position as a leading provider of [PC] materials in North America."

Dreier also said the project "aligns with our strategy to produce in the region for the region, to manufacture close to our customers and ensure reliable supply."

Officials added that the capacity expansion "is an important step" to meet growing demand for materials for the automotive, electronics and health care industries in North America. "To be successful in these markets, you need the right portfolio, consistent quality, and supply reliability, as well as solution-oriented technical expertise," engineering plastics head Lily Wang said.

The expanded Hebron site will work closely with Covestro's research and development center in Pittsburgh. Officials said this relationship "will drive the technology transfer from lab to industrial production to support major transformation processes," such as electrification and automation of mobility, sustainable developments and digitalization.

Covestro recently announced an upgrade of more than $40 million in Pittsburgh. Covestro LLC Chairman and President Samir Hifri said the Pittsburgh and Hebron investments "underscore how critical our U.S. sites and the U.S. market are to Covestro's global strategy." Construction of the new production lines is scheduled to begin in 2025, with operations starting by the end of 2026.

In the communications market, Covestro and Taiwan-based WNC announced the collaboration at the CES trade show in Las Vegas, which opened Jan. 7. The partnership will develop polycarbonate resins for radio frequency antennas and other advanced communications products.

In a news release, officials with both firms said the deal is designed to "accelerate the communications industry's transition to a circular, low-carbon future."

Covestro and WNC aim to develop high-performance, low-carbon PC materials. "Material innovation is essential to advancing sustainability and helping our customers achieve their climate goals faster," Covestro's Wang said.

"Through this partnership, we aim to inspire the value chain and drive circular, sustainable solutions for the evolving communications industry," she added. "We are committed to advancing technologies in the fields of enterprise networking, WiFi devices, automotive connectivity and smart home solutions."

WNC executive Petter Chen said his firm "focuses not only on product innovation and exceptional quality, but also on integrating circular development into our value chain."

Covestro's Wang also said working with WNC "offers an alternative approach to creating sustainable, high-performance products that meet today's needs while contributing to a more circular future."

For the communications market, Covestro currently makes thermal conductive PC resins for metal replacement. These materials enable heat management solutions for 5G and other advanced telecommunications applications.

Officials said Covestro's circular portfolio of PC materials can significantly reduce the carbon footprint of end products. The firm now offers UL-certified PC with 90 percent mechanically recycled content from post-consumer waste, which can deliver performance comparable to virgin materials. This solution has a carbon footprint 70 percent lower than that of similar virgin plastics.

Covestro also has introduced the RE series, a range of PCs derived from biowaste and bioresidues. Officials said the drop-in solution provides performance properties identical to fossil-based materials and can meet critical demands of high-requirement use cases, including optical and outdoor applications.

WNC is based in Hsinchu, Taiwan, and has annual sales of $3.6 billion. The firm has an R&D base in Taiwan, and manufacturing plants and sales offices in Taiwan, Vietnam, China, the U.S., the United Kingdom, Germany, Japan and Mexico, employing more than 12,000 worldwide.

WNC designs, develops and manufactures components for 5G, WiFi, satellite broadband, automotive infotainment and high speed switches.

Covestro is a global supplier of PC resins and films, thermoplastic PU, PU materials and foams and other specialty chemicals and materials. In

December 2024, the firm was acquired by Abu Dhabi National Oil Co. (Adnoc) in a deal valued at nearly $13 billion.

Covestro employs around 17,500 worldwide and posted sales of $14.9 billion in 2023.