German materials manufacturer Covestro has signed an agreement with Vencorex Holding SAS, a subsidiary of Thai chemical company PTT Global Chemical Public Company Limited, to acquire two legal entities with stand-alone production sites for HDI (Hexamethylene Diisocyanate) derivates in Rayong, Thailand and Freeport, USA. The legal entities and sites were formerly part of the French aliphatics specialist Vencorex. With this acquisition, Covestro strategically expands and improves its aliphatics production portfolio in the US and in the Asia-Pacific region. Thereby, the company further advances the implementation of its "Sustainable Future" corporate strategy by continuing its growth in profitable and innovative business areas like Coatings and Adhesives.
"The acquisition of these two former Vencorex sites fits perfectly to our portfolio and our strategic goals," says Christian Baier, Chief Financial Officer of Covestro. "While we maintain cost discipline to secure our short-term performance, we strengthen our long-term competitiveness through targeted investments like this one."
Covestro is a renowned supplier for HDI derivatives. It is an essential component for example in polyurethanes coatings, adhesives and sealants. It can therefore be found in a myriad of applications, like coatings and adhesives for cars, trucks, bridges, ships, wood furniture and electronics, to name just a few. Through the acquisition, Covestro complements its existing capacities in the US, Germany, China, and India, among others.
"These new capacities in Thailand and the US will augment our existing comprehensive production capabilities across all major regions. They will enable us to produce and deliver according to our customer's demands even better, especially during current market challenges," says Thomas Roemer, Head of the Business Entity Coatings and Adhesives at Covestro. "After the acquisition of the Resins & Functional Materials (RFM) business from DSM and investments in organic growth this is yet another sign of confidence the company has in the coatings and adhesives business. I look forward to welcoming the new colleagues into our organization!"
Both parties have agreed not to disclose the purchase price. The transaction is expected to close by the end of 2025.
About Covestro:
Covestro is one of the world's leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Covestro supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Covestro are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.
The company is geared completely to the circular economy. In addition, Covestro aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group's Scope 3 emissions are also set to be climate neutral by 2050. Covestro generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).
Find more information at the Covestro Homepage.
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Forward-looking statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro's public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments