GERMAN chemicals manufacturer Covestro has announced a nine-figure investment to expand its polycarbonate production facility in Hebron, Ohio.
The company, which formed out of Bayer in 2015, expects to begin constructing the new production lines this year, with operations beginning by the end of 2026.
Covestro did not confirm the total amount it is investing in its Ohio facility, only that it will be a “low triple digit million” euros.
The move comes after the Abu Dhabi National Oil Company (Adnoc) acquired Covestro for €15.9bn (US$16.2bn) in October.
Covestro also has an R&D site in Pittsburgh, Pennsylvania, and says that it is “doubling down” on its US operations.
Thorsten Dreier, CTO of Covestro, said: “This investment in our US compounding plant is an important component of our ‘sustainable growth’ strategy. With this expansion, we can meet our customers’ growing demand for specialist polycarbonate materials, grow together with our customers, and strengthen our position as a leading provider of polycarbonate materials in North America.
“The move also aligns with our strategy to produce in the region for the region, to manufacture close to our customers and ensure reliable supply.”
Samir Hifri, chairman of Covestro’s US arm, said: “The expanded capacity of our polycarbonate compounding capabilities in Ohio will both help us better supply our customers as well as represent a commitment to our employees at the site, the Hebron, Ohio community, and the US market as a whole.”
The move comes amid uncertainty as to how the incoming Donald Trump administration will impact the US chemicals sector, particularly with regards to oversight from the Environmental Protection Agency (EPA).
Trump allies have made it clear they intend to row back on environmental regulation, with the president-elect saying his nominee to head the EPA would “ensure fair and swift deregulatory decisions”.
Regarding the incoming administration, a spokesperson for Covestro told TCE that “the United States remains an attractive market with low-cost materials, robust infrastructure, and a talented and diverse workforce.
“We anticipate ongoing demand for Covestro’s materials, and we look forward to continued success in the region.”
However, a recent report from finance think tank Planet Tracker made the case to investors to favour the EU’s more strict regulatory framework over the looser rules in the US, arguing that ambiguity in the American system makes chemical polluters more vulnerable to lawsuits.
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