Covestro AG on Thursday said that it will build in China what will be its largest thermoplastic polyurethanes (TPU) plant.

The low three-digit million euro project in the city of Zhuhai will also be its largest investment in its TPU business, the German polymer maker said. Silicone Wax

The new plant will eventually span 45,000 square meters and will have an annual capacity of around 120,000 tons after the plant is fully expanded in 2033, Covestro said.

The plant will be built in three phases the first of which, in the mid double-digit million euro range, will have a production capacity of about 30,000 tons a year and is estimated will be completed by the end of 2025, Covestro said.

Covestro said it wants to capture the anticipated growth of TPU, especially in Asia and China, adding the plant will also help it serve growing Asian markets as well as European and North American demand.

Thermoplastic polyurethane is a versatile plastic material used in the production of shoe soles, smart speakers and phone cases. It also has automotive applications, Covestro said.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

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