Covestro and XRG Finalize Partnership to Revolutionize the Chemical Industry

Covestro and XRG Finalize Strategic Partnership

Covestro AG and XRG P.J.S.C., formerly known as ADNOC International Limited, have achieved a significant milestone by obtaining final regulatory approval from the German Federal Ministry for Economic Affairs and Energy. This approval marks an important step in the formation of their strategic partnership, intended to revolutionize the chemical industry through innovative practices and sustainable initiatives.

A New Era for Covestro

According to Dr. Markus Steilemann, CEO of Covestro, this partnership marks a new chapter for his company. He emphasizes that with XRG as a strong and forward-thinking partner, they are poised to enhance innovation and implement digital transformation across their operations. The collaboration aims to scale circular solutions, which align perfectly with Covestro's 'Sustainable Future' strategy. The mutual benefits expected from this alliance promise to create opportunities for stakeholders, including customers, suppliers, and employees.

Long-term Vision with XRG

Dr. Rainer Seele, the President of Global Chemicals at XRG, echoed these sentiments, expressing enthusiasm for moving forward with a long-term partnership with Covestro. With XRG's ambitions to become one of the top three global investors in the chemical sector, this acquisition enhances their international presence and operational capabilities. The leadership teams of both companies are committed to unlocking further operational efficiency and long-term value through cooperation.

Addressing Global Challenges

The strategic partnership is rooted in a shared commitment to tackling significant global megatrends. By merging XRG's extensive reach and resources with Covestro's cutting-edge technology expertise, the two companies aim to unlock new opportunities that cater to global needs. Covestro plans to invest EUR 1.17 billion to further expedite its strategic goals and bolster its transformation in sustainability.

This partnership emphasizes the importance of driving digital advancements, including the implementation of artificial intelligence (AI) and quantum computing, within Covestro’s manufacturing processes. It also reaffirms their focus on high-growth sectors such as mobility, construction, and electronics, signaling a readiness to adapt to the rapidly changing industrial landscape.

Maintaining Autonomy and Corporate Culture

An integral aspect of the partnership is that Covestro will maintain its autonomy, with its management structure and operational governance remaining intact. Dr. Steilemann and his team will continue to steer the strategic direction of the company while collaborating closely with XRG to seize new operational opportunities.

Moreover, Covestro will sustain its existing corporate governance standards and work agreements, as well as its registration in Leverkusen, Germany. This approach ensures stability while fostering a progressive path toward achieving their sustainability objectives.

About XRG

XRG is a global investment firm specializing in natural gas, chemicals, and scalable energy solutions, shaping the industrial landscape. Headquartered in Abu Dhabi, their impressive portfolio is designed to meet the ever-growing demand for energy and sustainable chemicals worldwide.

Through this partnership with Covestro, XRG expects to enhance its commitment to sustainability and resilience. With the combined strengths of both enterprises, they aim to redefine industry standards and embrace the potential of cleaner and more efficient energy solutions.

About Covestro

Covestro stands as one of the world leaders in high-quality polymer manufacturing, continually seeking innovations that will improve sustainability across various sectors, including mobility, healthcare, and electronics. The company is on a mission to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, aiming to further extend this commitment to its Scope 3 emissions by 2050.

In fiscal year 2024, Covestro achieved sales of EUR 14.2 billion and has a workforce of approximately 17,500 employees across 46 production sites globally. This robust partnership with XRG not only promises to enhance Covestro's reach and capabilities but also sets the stage for transformative growth within the chemical industry.

As Covestro embarks on this exciting journey alongside XRG, both companies are well-positioned to lead the charge toward a more sustainable and technologically advanced future in the chemicals sector.