(Yicai) Oct. 24 -- Covestro, a German manufacturer of polymer materials, has kicked off operations at its first global facility for post-consumer resin plastics in Shanghai to supply environmentally-friendly packaging options to makers of electrical appliances, car parts, electronics, and consumer goods.

The new factory in the eastern city will have an annual capacity of 25,000 tons, The Paper reported today, citing Lily Wang, head of the Leverkusen-based company’s engineering plastics business unit. Eventually, the plan is to deliver more than 60,000 tons of recycled polycarbonate per year in the Asia-Pacific region by 2026 to meet strong market demand. Polycarbonate is used in electric appliances, medical devices, construction, and automotive parts.

China’s industrial chain layout is sound with huge market potential, Wang said. The location of the plant is strategic as for Covestro, the Chinese market provides a benchmark for its global layout, per Wang. The factory considers drinking fountain containers and lamps as some of the raw materials for new products.

Some 31 percent of all plastic waste in China is recycled, which is considered to be a high level globally, according to public data. In 2022, China’s plastic waste recycling totaled 18 million tons, down 5 percent from a year earlier.

Editor: Emmi Laine