Texas company to supply Covestro with chemicals

Texas-based Encina Development Group, a producer of circular chemicals derived from end-of-life plastics, recently entered into a long-term supply agreement to supply Covestro, a manufacturer of polymer materials and their components, with chemically recycled, circular feedstock derived from post-consumer end-of-life plastic.

Encina will supply benzene and toluene once it completes a production facility that is expected to be operational at the end of 2027.

“The ability to source raw materials from used plastics for the manufacture of our products makes a decisive contribution to realizing our vision of a circular economy,” Thorsten Dreier, Covestro chief technology officer, said. “This is because such raw materials not only enable the reuse of used plastics, but also have a lower carbon footprint, which leads to more sustainable end products.”

Covestro uses benzene and toluene during the manufacturing processes for methylene diphenyl diisocyanate and toluene diisocyanate, raw materials used to produce rigid and flexible polyurethane foams.

Covestro’s U.S. headquarters is in Pittsburgh. The company’s products are used by end users in the building and living, chemical, cosmetics and health, electrical, electronics, mobility, sports and leisure sectors.

Encina’s products are used in a broad range of industries, including construction and materials, consumer products and packaging, and pharmaceuticals.