On 1st September, Covestro, the leading global materials manufacturer, will be celebrating its first anniversary of successfully demonstrating its capabilities as an independent entity.
Covestro which was formerly a part of Bayer Material Science officially separated from the Bayer Group last year, and has successfully established itself in the international capital market with a big stock market flotation.
Over the past 12 months, Covestro has completed a complex transformation process. Covestro’s Chief Financial Officer, Frank Lutz, said the first year for Covestro as an independent entity has been busy with the materials manufacturer clocking a strong net year-on-year income growth of 51%.
On the occasion, he stressed upon the importance of India in the APAC growth strategy of Covestro. Lutz asserted that the recent Q2 results of the company have been satisfactory and that he was optimistic of continuing the growth in the coming quarters as well. “The continued dynamic core volume growth stood at 7.7% year-on-year. EBIDTA has also significantly improved by over 18% and all debts taken from the parent company (Bayer) have been repaid in full,” he said.
Acknowledging the importance of the APAC region in Covestro’s future growth story, Lutz reiterated that Covestro strongly believes in the APAC region; especially India which has been witnessing a double-digit growth. “India comprises roughly 20% of our APAC revenues and it will be a formidable part of the Covestro growth strategy in the region.”
“India is a growing market and holds lot of promise. The three key industry verticals driving the growth for polymers and polycarbonates in India are automotive followed by IT and electronics and home furnishing. Automotive industry contributes approximately 25% of our revenues in the country.This one year of being an independent entity has helped Covestro evolve as a global manufacturer,” Ajay Durrani, Managing Director. Covestro India added.
Lutz also highlighted that Covestro is increasingly anchoring sustainability at every level, and is part of the company’s core values. The objective is conserving the environment, advance society and at the same time create economic value. The company has, therefore, established a series of challenging and measurable targets it wants to achieve by 2025. For example, Covestro plans to halve greenhouse gas emissions per metric ton of product produced relative to 2005.
Many new products and ideas
Covestro is also breaking new ground when it comes to carbon dioxide. In 2016, Covestro inaugurated a new plant on stream at its Dormagen site in which the Carbon Dioxide is being used for the first time as a raw material. A CO2-based precursor for the production of polyurethane foam for mattresses and upholstered furniture will soon make its market debut.
A perfect example of how Covestro combines sustainability and innovation can be witnessed at the K 2016, the world’s largest plastics trade fair, in Düsseldorf this October. From Covestro, one highlight is a new vehicle concept intended to promote electric mobility. For the first time ever, all of the glazing is made of polycarbonate.
Covestro has also gleaned valuable insights for the further development of its products and potential new applications from the Solar Impulse mission – the
Among other things, Covestro designed the cockpit and provided a highly efficient insulating material, without which the flight would not have been possible.
Covestro will continue to work with the Solar Impulse founders in the future to help clean technologies to achieve a breakthrough.
About Covestro AG
With 2015 sales of EUR 12.1 billion, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and sports and leisure industries. Covestro, formerly Bayer MaterialScience, has 30 production sites worldwide and employed approximately 15,800 people (calculated as full-time equivalents) at the end of 2015.
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.