Nimble materials science player stays ahead of the sustainable game
Covestro, a leading German high-tech polymers supplier, said it will contribute its expertise in materials sciences to support China’s sustainable development.
The new materials technology products and solutions provider has a product portfolio that includes polyurethane, polycarbonates, as well as raw materials for coatings, adhesives and specialties.
Markus Steilemann, chief commercial officer of Covestro, who has been appointed its next CEO, said that China’s current vision for long-term development was a perfect match with Covestro’s corporate strategy and the company was ready to serve China’s transformation needs.
“The good thing for us is that we are already doing it,” he said.“Even before the Chinese government declared it would focus more on sustainability, that was already a part of what we did.”
Covestro plans to lend a hand in China’s moves towards sustainability by offering a wide range of products to various industries, and in particular by paying more attention to the automotive, electrical and electronics, and construction industries in the coming years.
“Those industries are the most impactful ones that are providing the highest leverage to sustainable development both in China and globally,” Steilemann said.
Covestro said it has made significant achievements in these highlighted sectors over the past few years. In the energy industry, for instance, Covestro and its partners developed the world’s first polyurethanebased wind blade with higher efficiency and lower costs in power generation.
Our sales in China have developed three-fold in the last 10 years.” Markus Steilemann, chief commercial officer of Covestro
China drives growth
China became the biggest driver for Covestro’s growth globally in the third quarter of 2017, helping push its performance forward for the first nine months of the year. Demonstrating the company’s core business strengths, it posted sales in China of 2.23 billion euros ($2.5 billion) for the nine months of 2017, topping its United States’ market’s 2.21 billion euros and accounting for 21 percent of Covestro’s global sales.
“Our sales in China have developed three-fold in the last 10 years,” said Steilemann. “Overall, the growth rate has outpaced any other country that we operate in.”
Although China is moving toward a new normal economic situation, which means the economic growth rate will not be as high as it was in previous years, Steilemann remained optimistic about Covestro’s development there.
He said the country’s huge economic base ensured the absolute amount of growth would remain outstanding.
In addition, sectors which Covestro is targeting, such as smart vehicles, are growing at a faster pace than traditional industries. Promoting Innovation
Covestro is promoting classical product-centric innovation, but also customer-centric innovation, functional innovation and business model innovation, to support China’s sustainable development.
It established its Polymer Research and Development Center, or PRDC, in Shanghai over 15 years ago. It is now one of its three global innovation hubs and supports the technical development of its three segments: polyurethanes, polycarbonates and its coatings, adhesives and specialties business units.
It also partnered with leading academic institutions such as Tongji University to promote open innovation, especially in the automotive and construction fields.
Tongji University, known for its leading expertise in the automotive and construction sectors, is now Covestro’s biggest academic partner in China, according to Steilemann.
Covestro once invited Tongji’s students to the PRDC so they could obtain a better understanding of real market demands. The company also supports students from Tongji to start their own businesses through business model competition and other platforms.
On business model innovation, the company said that currently it is exploring and experimenting on ways to offer customers more and more user-friendly services, along with advanced raw materials.
For instance, it is able to remotely collect and analyze online process data so as to help customers to improve the quality of its final products. It also offers online support provided by technicians, who react to customer requests in the most effective and convenient manner.
“In the future, modern technology will enable us to connect 24 hours a day with our customers and learn about their habits. Sometimes these are even habits they are not aware of,” Steilemann added.