[pageLogInLogOut]

#Recycling / Circular Economy

Covestro launches mechanical recycling polycarbonate compounding line in China

At a customer event, Sucheta Govil, Covestro's Chief Commerical Officer (3rd from left), Lily Wang, head of the Engineering Plastics business unit (4th from left), and Dr. Nicolas Stoeckel, head of operations at Engineering Plastics (far right), celebrate the startup of the new MCR plant. © Covestro
Covestro has commenced operations at its first dedicated mechanical recycling (MCR) compounding line for polycarbonates at its integrated site in Shanghai, China. This line is set to produce over 25,000 tons of premium-quality polycarbonates and blends containing mechanically recycled materials annually, in response to the growing demand for post-consumer-recycled (PCR) plastics, particularly in applications within the electrical and electronic products, automotive, and consumer goods sectors.
  • Shanghai facility is the inaugural dedicated line of its kind of Covestro with an annual capacity of 25,000 tons
  • Committed to supplying 60,000 tons of recycled-content polycarbonates annually in Asia Pacific by 2026
  • Expansive range of premium recycled polycarbonates facilitating diverse applications
  • Yearly polycarbonate production capacity in Asia-Pacific grows by more than 100,000 tons


"The launch of our MCR production line marks another significant stride in our journey towards achieving a circular economy and operational climate neutrality by 2035," said Sucheta Govil, Chief Commercial Officer of Covestro. "Plastic waste recycling is pivotal in realizing this vision, and through the expansion of our recycled plastics production capacity, we aim to lead the way in driving sustainability across diverse industries."

Covestro is committed to supplying over 60,000 tons of recycled-content polycarbonates annually in the Asia Pacific region by 2026, in response to robust market demand. Recently, the company also transformed an existing compounding line at its Map Ta Phut site in Thailand for mechanically recycled polycarbonate.

"These investments enable us to meet the rising demand for PCR polycarbonates, enhancing our capacity and efficiency. With new or repurposed capacity now operational, we are better positioned to assist our downstream customers in their journey towards more sustainable products, expediting the transformation of industries towards a circular and climate-neutral future," said Lily Wang, Head of Covestro’s Business Entity Engineering Plastics. 

A broad range of PCR portfolio

The demand for such materials is surging on a global scale, driven by regulatory initiatives like the European Union’s proposed Directive on end-of-life vehicles (ELV Directive), which sets strict benchmarks for the utilization of recycled plastics. Furthermore, industries like consumer electronics are poised for increased demand for recycled materials, especially those with a substantial recycled content.

These market dynamics underscore the significance of Covestro’s recent developments in providing PCR polycarbonates. Earlier this year, the company unveiled a polycarbonate boasting 90 percent recycled content. This grade not only attains outstanding whiteness and highly saturated colors but also touts a sustainable feature – a 70 percent reduction in carbon footprint compared to its fossil-based virgin plastic counterpart. Achieving this remarkable accomplishment requires a meticulous selection of high-quality recycled materials and precise optimization of material composition during the compounding process.

Furthermore, Covestro is actively engaged in pioneering the chemical recycling of polycarbonates. Having successfully developed an innovative process within the laboratory, the company is now embarking on the technical implementation of this breakthrough at a pilot scale.




Expansion of polycarbonate production capacity in Asia Pacific

After debottlenecking multiple production lines at the Map Ta Phut site in Thailand, Covestro is nearing the final stages of a program to enhance polycarbonate production capacity and capabilities across the Asia-Pacific region. This program also includes the addition of new production lines at sites in Shanghai and Guangzhou, China, as well as Greater Noida, India, in recent times. The combined additional capacity now exceeds 100,000 metric tons annually. These strategic projects, aimed at optimizing the regional production network, have been supported by using digital tools, which also reduced investment costs. 

View of the new production facility for compounding mechanically recycled polycarbonate in Shanghai. © Covestro
View of the new production facility for compounding mechanically recycled polycarbonate in Shanghai. © Covestro


"In this way, we aim not only to meet the growing demand for polycarbonate in Asia, but also to offer our customers there an improved product quality," says Dr. Nicolas Stoeckel, Head of Operations in the Business Entity Engineering Plastics. "Depending on demand, the upgrades can be used for compounding recycled or conventionally produced polycarbonate." Therefore, both projects are also about improving Covestro´s ability to produce more plastics with higher recycled content.


More News from Covestro AG

#Smart Textiles

Covestro, FILK Freiberg, and OUT e.V. develop flexible, conductive polymer smart textile system

As the smart textiles market continues to grow across healthcare, personal protection, sportswear, and automotive applications, developers are seeking new ways to integrate electronic functionality directly into textiles, without the rigidity and complexity of conventional wiring. To address this challenge, FILK Freiberg Institute, an independent research institution with expertise in polymer coatings for textile applications, collaborated with Optotransmitter-Umweltschutz-Technologie (OUT) e.V. The joint project, funded under the German Industrielle Gemeinschaftsforschung (IGF) program of the Bundesministerium für Wirtschaft und Energie (BMWE), focused on developing flexible, conductive polymer surfaces for next-generation smart textiles.

#Techtextil 2026

Covestro to exhibit solutions for a more sustainable and productive textile industry at Techtextil 2026

Covestro will present a broad portfolio of material innovations for textile coatings, adhesive films and thermoplastic polyurethanes (TPUs) at Techtextil 2026 (Hall 11.0, Booth C79). The exhibits will demonstrate how advanced solutions can enhance durability, recyclability and manufacturing efficiency across applications such as automotive, infrastructure, protective apparel and sportswear. A particular focus will be on more sustainable coating technologies, including antimicrobial systems based on INSQIN® in combination with AGXX from Heraeus Precious Metals, as well as the integration of Pontacol® thermoplastic adhesive films into Covestro’s offering.

#Technical Textiles

Covestro showcases monomaterial concept in autonomous SUE People Mover

UE | STUDIOS has unveiled the fully autonomous electric minibus “Self-driving Urban E-Shuttle” (SUE), placing strong emphasis on sustainable material design. Developed within a project funded by the Federal Ministry for Economic Affairs and Energy (BMWE) and the European Union, the vehicle will begin public road testing this year. At the core of the concept is the consistent use of recyclable monomaterials to improve circularity at end of life.

#Textile chemistry

Covestro and Heraeus Precious Metals collaborate to enable safer, more sustainable antimicrobial textile coatings

Laboratory tests reveal that AGXX antimicrobial surface technology from Heraeus Precious Metals is fully compatible with Impranil® PU dispersions which are part of the waterborne INSQIN® textile coating technology from Covestro, paving the way for more sustainable antimicrobial textile coatings. This discovery comes at a key moment for the textile coatings industry. As the sharing economy continues to grow, more people are coming into regular contact with high-use surfaces, creating ideal conditions for bacteria, viruses, and other microorganisms to thrive.

More News on Recycling / Circular Economy

#ITM 2026

BB Engineering unveils new, patented “Val-uePack” spin pack at ITM

At the upcoming ITM in Istanbul, taking place June 9–13 at the Tüyap Fair Convention and Congress Center in Hall 7, Booth 702B, BB Engineering will once again be represented at a joint booth with its parent company, Barmag, and its representative, Tekstil Servis. The German machine manufacturer will show-case its expertise in man-made fiber and recycling technology, presenting its entire product portfolio, which includes compo-nents such as extruders and filters, as well as complete sys-tems for spinning synthetic fibers, air-texturing, and PET recy-cling.

#Recycled Fibers

Syre expands partnership with Target to advance next-generation recycled materials at scale

Advancing next-generation materials to support scalable circular solutions across global retail Stockholm, May 2026 — Syre, the textile impact company hyperscaling textile-to-textile recycling today announced an expanded collaboration with Target to accelerate the adoption of next-generation recycled materials across retail at scale.

#Recycling / Circular Economy

Project REWEAR investigates diverse economies of rewear as a global practice of circularity

Every year, European households discard millions of tonnes of clothing. Around a quarter of what gets separately collected is exported, much of it classified as rewearable. A significant share ends up in markets like Kantamanto in Accra, Ghana, where an estimated 15 million garments arrive every week. New research published today reveals what happens when that clothing arrives.

#Recycling / Circular Economy

RE&UP contributes to Global Fashion Summit 2026 circularity discussion

RE&UP contributed to the global conversation on textile circularity at Global Fashion Summit 2026 in Copenhagen, where Fatih Konukoğlu, Chairman of RE&UP and Vice Chairman of Sanko Holding, took part in both the keynote session “The New Rules” and the panel discussion “A Reckoning and Renewal for Circular Horizons”, alongside leaders from H&M Group, Looper Textile Co. and Sourcing Journal.

Latest News

#INDEX 2026

ANDRITZ at INDEX ’26: Driving sustainability with next-generation nonwoven technologies

From May 19-22, ANDRITZ Nonwoven & Textile is presenting its innovative solutions for the nonwoven & textile industry in Geneva, Switzerland. ANDRITZ will focus on technologies for sustainable and durable nonwovens, converting, sustainable fiber processes, textile recycling, and life-cycle services on booth 2114 in hall 02.

#INDEX 2026

INDEX™26: World’s leading nonwovens exhibition presents groundbreaking product launches, exclusive seminars and immersive experiences

From 19 to 22 May 2026, 620 exhibitors from 44 countries will gather in Geneva at Palexpo for INDEX™26. The exhibition aims to demonstrate how the future of technical materials will increasingly be shaped by collaborative supply chains and integrated innovation across the nonwovens industry. This year’s edition focuses not only on individual technological advances, but also on how cooperation throughout the value chain can enhance the performance, sustainability and value of nonwoven solutions.

#INDEX 2026

The LYCRA Company launches LYCRA® ADAPTIV fiber for nonwovens, advancing comfort and fit in disposable hygiene at INDEX™ 26

The LYCRA Company, a leader in innovative and sustainable fibers for apparel and personal care, today announced the official global launch of LYCRA® ADAPTIV fiber for nonwovens at INDEX™ 26, in Geneva, Switzerland, May 19–22. This breakthrough stretch fiber, already trusted by leading global apparel brands, now ushers in a new era of comfort, fit, and performance for baby diapers, disposable hygiene products, adult incontinence, and feminine care.

#INDEX 2026

Innovations for today – solutions for tomorrow: Trützschler Nonwovens at INDEX™ 2026

From 19 to 22 May, Trützschler Nonwovens will present itself at booth 1641 as a long-term partner to its customers. The focus will be on new products for all nonwoven processes, further developments of the digital working environment T‑ONE, and an expanded service portfolio.

TOP