(Yicai) Sept. 28 -- Covestro, a German maker of materials used in cars and construction, has started constructing its biggest thermoplastic polyurethane facility in the world in China.

The project in Zhuhai, Guangdong province, requires an investment of hundreds of millions of euros, the Leverkusen-based firm announced yesterday. The total capacity is designed to be 120,000 tons of TPU, a type of plastic used in power tools and medical devices, by 2033.

China is one of Covestro’s largest markets, and its Shanghai base is the company’s most comprehensive production hub in the world. But the firm also has facilities in southern China's Guangzhou and Foshan.

Guangdong is a manufacturing hub for industries such as information technology, consumer electronics, and footwear, and choosing Zhuhai as the company’s TPU production base will allow Covestro to be close to its customers while improving collaboration, said Lisa Ketelsen, head of TPU in the Asia-Pacific region.

The first phase of the project is expected to be ready by 2025 to reach an annual production capacity of about 30,000 tons. The second phase will include the construction of an innovation center to quickly respond to customer needs, Ketelsen revealed.

Editor: Emmi Laine