Covestro, a leading supplier of high-performance resins, has accelerated the expansion of its Thermoplastic Polyurethanes business (TPU) by raising its stake in the joint venture DIC Covestro Polymer Ltd (DCP) from 50 to 80 per cent. The investment is part of its expansion of global TPU business. Closing of the deal is planned for early second quarter 2019.

DCP was established as a 50/50 joint venture in the year 2000 between Dainippon Ink & Chemicals Inc (today DIC) and Bayer Ltd. Today it is a leading company in the Japanese TPU industry.

DIC Corporation (DIC) will continue to support the success of DCP with its industry network, strong brand name, and as a reliable local partner, according to a media release by Covestro. Production and R&D by DCP will continue at Sakai plant located in the DIC facility in Sakai, Osaka Prefecture, getting support from DIC such as supplying feedstocks and providing services on site. DIC is also an important partner for Covestro in other coatings, adhesives and specialties business. The acquisition complements Covestro’s recent organic global capacity expansions of TPU sites in New Martinsville (USA) and Changhua (Taiwan), which raises the respective annual TPU production capacities by approximately 25 per cent each.

“The strong and long-term partnership of both companies, as well as our thorough understanding of the future growth potential make this acquisition a fitting step in Covestro’s growth strategy focusing on sustainability driven innovation,” said Dr. Markus Steilemann, CEO of Covestro.

“DCP’s unique local capabilities together with Covestro’s global network will form a powerful combination going forward. The differentiated product portfolio fits well into our pursuit to grow in more resilient, profitable businesses,” said Kimiyasu Yonemaru, president of Covestro Japan. “It shows a clear commitment from Covestro to the Japanese market.” (PC)