Strategy of the Reportable Segments
In the years to come, demand for polyurethanes is expected to grow at an above-average rate compared to the global economy. In the Polyurethanes (PUR) segment, we aim to provide the precursors needed to tap into this development.
The construction industry is one of the strategic industries where we are already strongly represented, and we intend to further expand this position. At the same time, we plan to take into account the growing need for sustainable solutions. In the future, our range of products should satisfy the demand for energy-efficient and affordable living space, mainly in the emerging economies. Considering the SDGs, there are some not yet fully addressed market segments that also warrant our attention – such as wind energy, where we provide materials for generation.
The PUR segment manufactures largely standardized products; the focus is thus on increasing efficiency through cost management as well as product and process innovations. To achieve this, we are continually evaluating the potential for optimizing facilities and sites. In addition, we plan to develop new business models and improve existing ones.
Increasing digitalization in various industries requires innovative solutions and unlocks new opportunities for the Polycarbonates (PCS) segment. We meet these new requirements by continuously enhancing our product portfolio and developing solutions to fulfill demand in application areas with potential for the future. These application areas include smart homes, sensor integration in cars, casings for high-performance battery cells in electric vehicles, as well as signal-penetrable distribution stations and functional housings such as those used in 5G infrastructures.
We intend to further increase the share of resilient business by focusing on application areas where stringent requirements are imposed by complex application technology and technical applications, particularly in the automotive, health, and electronics/LED areas. Furthermore, through innovations such as fiber-reinforced composite materials, we plan to expand the technological position of the PCS segment and generate even more growth in a variety of areas. In addition, new forms of mobility continue to provide opportunities for PCS since materials with low weight, high-quality optics, and transparency are particularly in demand in the automotive industry, such as in the promising electromobility market. With its distinct application expertise and global presence, the segment should grow at a higher rate than that of the global economy.
Coatings, Adhesives, Specialties
The Coatings, Adhesives, Specialties (CAS) segment specializes in manufacturing precursors for coatings and adhesives that are used in sectors such as the automotive, construction, and furniture industries. We aim to secure and further build on our strong position. Of particular importance in achieving this are consistent cooperation along the entire value chain, the efficient expansion of our capacities, and customer-oriented product development. Furthermore, we are working on products that are as environmentally friendly as possible, do not require the use of solvents, and utilize alternative raw materials such as plant biomass.
Our specialties business produces high-quality films, specialty elastomers, and precursors for cosmetics, textiles, and medical products. Covestro plans to grow at an above-average rate in this area as well, thanks to our strong technological expertise and our knowledge of chemical formulation. In this way, we aim to achieve new and profitable application areas for our products.
The completion of the acquisition, which is planned for the first quarter of fiscal year 2021, and integration of the Resins & Functional Materials business (RFM) of Koninklijke DSM N.V. into the CAS segment will make Covestro one of the world’s leading suppliers of sustainable coating resins. RFM features a strong, sustainable product portfolio that will reinforce the position of CAS in the value chain. This will enable us to offer our customers more effective and comprehensive solutions.