Covestro, a German materials science company, has concluded a challenging 2025 fiscal year, despite a persistently testing market environment. Volatile geopolitical dynamics, sustained weak global demand, and intense competitive pressure, coupled with the impact of the fire at the Dormagen Chempark, weighed heavily on the group’s economic development.
While the financial figures reflect a transitional period, the company claims to be doubling down on its ‘Sustainable Future’ strategy through leadership updates, infrastructure growth, and material innovation.
The group reported 2025 sales of €12.9 billion, a 8.7% decrease from the previous year (€14.2 billion). This decline was driven by lower selling prices and exchange-rate effects, while EBITDA totalled €740 million. Beyond market pressures, earnings were impacted by a 3-digit-million-euro loss after a fire at Dormagen, its largest and one of the most modern Covestro sites in Germany.
Despite these hurdles, Covestro’s ‘STRONG’ efficiency program delivered €275 million in savings, and the company completed its strategic partnership with XRG, supported by a capital increase that has strengthened the balance sheet for 2026.
To meet rising demand for high-performance materials, Covestro has launched Phase I of its new thermoplastic polyurethane (TPU) production site in Zhuhai, South China. The first phase, representing a mid-double-digit million-euro investment, will produce approximately 30,000 tons of TPU annually, meeting growing demand for this versatile material across industries such as IT, automotive, and footwear.
The investment in this entirely new site, originally announced in 2023, marks a significant milestone in Covestro’s region-for-region strategy and its commitment
to growth in its Solutions & Specialities business. The Zhuhai site will be developed in three phases across a 45,000m² area, with maximum production capacity estimated at 120,000 tons per year upon completion of the final phase, expected in the 2030s. This will then make it the company’s largest TPU production facility globally.
In 2025, Covestro also increased its polycarbonate (PC) speciality film capacity in Thailand. Having operated a facility there since 2007, this expansion allows the company to meet growing demand for innovative specialty films, in the region Asia-Pacific and strengthen its Solutions & Specialties segment.
Covestro continues to solidify its dominance in the high-security document sector. Its Makrofol® ID and Platilon® IDfilms remain the gold standard for passports and ID cards, offering strong tamper resistance and laser engravability.
The broader portfolio includes Autentium®, a TPU-based banknote material that eliminates the need for traditional opacification coatings, and Bayfol® HX, a photopolymer film enabling ultra-bright security holograms, with future applications in the automotive lighting industry under exploration.
The Certevo® polymeric substrate is used to innovate the laser personalisation of passport covers, while Makrofol® and Bayfol® Blends continue to serve the healthcare, mobility, and identification industries with durability and clarity.
Covestro operates through two distinct segments to balance cost-efficiency with high-end innovation. The Performance Materials segment focuses on standard polycarbonates, urethane components, and base chemicals, prioritising cost-competitive commodity delivery.
Conversely, the Solutions & Specialties segment comprises six business entities – Engineering Plastics, Coatings and Adhesives, Tailored Urethanes, Thermoplastic Polyurethanes, Speciality Films, and Elastomers – which focus on high-innovation products and specialised application services.
