"With our automated laboratory, we can work together with our customers on the future of coatings and adhesives. Because it operates almost completely autonomously and learns from our existing knowledge and data lake as well as newly generated data, it makes the process of optimizing and developing formulations many times more efficient and precise. This allows us to optimize existing formulations faster or even develop completely new formulations for and together with our customers. We can say: We are reaching a new level of modern research," says Thomas Büsgen, head of the laboratory.

Testing Formulations with ����AV Binders and Crosslinkers 

Specifically, the new laboratory will test formulations with ����AV binders and crosslinkers for coatings and adhesives. Their clever selection ensures properties such as hardness, adhesion, opacity, gloss, or durability. Such formulations typically consist of seven to 15 components, whose combination determines the properties of the final product. The resulting high number of possible combinations means that standard formulations are usually used. The new laboratory now enables more extensive test series, also thanks to the computer-aided design of test series and the use of automation.

"Our new automated laboratory gives us more possibilities for testing formulations. It relieves our specialized laboratories of their standard tasks and can analyze samples more systematically. This allows us to focus our expertise and experience even more on customer-specific topics or try approaches we couldn't have implemented otherwise," says Martin Merkens, Head of Sales & Market Development EMLA in ����AV's Coatings and Adhesives business entity. “This will particularly help us in the area of circular economy: Alternative raw materials, for example bio-based or recycled materials, can be tested faster and evaluated for their properties in the final product.”

Facility to Run Tens of Thousands of Tests Annually 

The new facility can operate 24 hours a day, 7 days a week. The goal is to run tens of thousands of tests annually. This sets a new standard in terms of number, variety, precision, and testing speed. Another advantage: The automated laboratory generates a large amount of structured data. The knowledge about formulation possibilities and influencing factors thus will grow rapidly. The collected data, combined with measurement data from existing studies, is evaluated using special machine learning algorithms to further improve formulations. Artificial intelligence is also used to predict new experiments based on property goals and simultaneously verify them in the automated laboratory – creating a self-learning system.

In addition to formulating water- and solvent-based 1K and 2K systems, the automated laboratory also performs numerous material tests on the raw materials themselves, their formulations, and applied films. Application can even take place in different climates in the lab to simulate product use under application conditions. The progressing laboratory digitalization across ����AV also enables easy forwarding of generated samples to more specialized testing laboratories. This makes it possible to supplement the datasets with market-specific test results and identify relevant dependencies more quickly.

����AV at European Coatings Show 2025 in Nuremberg 

At the European Coatings Show from March 25-27 in Nuremberg, experts from application development and segments such as automotive, printing & packaging, or construction & architecture will be present to discuss new, joint approaches made possible by the laboratory with customers. Visit the company's booth in Hall 4A, Stand 438. There you can learn more about the laboratory and other innovative material solutions and technical developments for the coatings and adhesives industry.

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Sucheta Govil, CCO at ����AV: “Our investments in R&D are integral to our strategy of creating value for our customers. They are enabling us to expand and maintain our innovation pipeline at a high level. By this, we are the go-to partner for more sustainable solutions which help to meet the climate-neutrality targets of our customers. Thanks to this global innovation booster, we come even closer to our joint goal to become fully circular.”

Digitalization leads the way to the laboratory of the future

One of the key examples of the R&D investments and cooperation across different business segments is the globally available expertise for In-Mold-Coating (i.e., Direct Coating), with the facilities in Leverkusen and other main R&D sites that were enhanced recently. To support further developments in process technology, end-to-end digitalization was implemented to record all process-relevant data. In the highly competitive automotive industry, innovation in In-Mold-Coating technologies enables high quality surfaces for a modern design of cars. This directly feeds the demand for a more efficient automotive production.

Another important investment milestone: High-performance computers (HPCII) mark the next expansion stage of technological evolution in Leverkusen towards an innovation incubator for the circular economy. By enabling simulation of chemical processes, the high-performance computers enable faster and more sustainable research processes. Amongst others they are used for example in foam processing simulations for refrigerators and enable energy efficiency and improved cool chains in end products.

“Simulations of chemical processes are a key element in the development of recycling technologies and research on new molecule classifications,” said Torsten Heinemann, Head of Group Innovation & Sustainability at ����AV. “Moreover, laboratory digitalization enables test data to be recorded in higher quality and to a greater extent than is usual in analogue ways. Both help us to find the most possible and more sustainable solutions for our customers more quickly. Many developments in the field of recycling would be like looking for a needle in a haystack without digital R&D and simulations. “

Chemical recycling is a promising approach especially for plastics that cannot be mechanically recycled or can only be recycled with considerable effort. With chemical recycling, large quantities of the original material can be recovered. One example is the Evocycle^® CQ mattress project: Together with partners, ����AV has developed an innovative technology for the chemolysis of flexible polyurethane foams from used mattresses, in which the main components –polyol and the precursor to the isocyanate TDI – can be recovered. In this way, used mattress foams are directly converted back into renewed polyurethane building blocks.

Infrastructure and global sites benefit from ongoing investment

A functioning infrastructure is the basis for innovative research. ����AV’s investments therefore include modernization measures in its laboratories in Leverkusen. These laboratories drive among others application technology for coatings and adhesives in core industries like automotive and construction, but also special areas such as light guiding applications as well as medical applications.

Also in the U.S., ����AV is investing in a series of modernization and technical upgrades across its Pittsburgh campus. ����AV views the U.S. market as innovative and high potential. By improving the R&D facilities it signals strong commitment to the customers.

In the innovation center in Shanghai, China, distinct investments into infrastructure and digitalization over the past months echoed the leading solutions developments for automotive and electronics industries.

Under this partnership, one of ����AV’s key roles is to provide more sustainable plastic solutions along with their carbon footprint data. Alibaba Cloud’s Energy Expert, an AI-driven sustainability platform, plays a crucial role in realizing the whole life cycle emission accounting from recycled materials to final consumer products leveraging digital technology such as blockchain. It also provides an end-to-end solution for industrial companies to measure and optimize their carbon footprint across their production lifecycle.

“As a materials manufacturer with a high focus on sustainable material innovation, ����AV is committed to driving circularity and climate neutrality. Our collaboration with Alibaba Cloud marks a significant milestone in our journey towards a circular and climate-neutral future,” says Lily Wang, Global Head of the Engineering Plastics Business Entity, at ����AV. “With our joint solutions, we are supporting our customers to improve their supply chain transparency while building trust among environmentally conscious consumers, thereby driving industries towards a greener future.”

“We are proud to partner with ����AV in pioneering sustainable solutions that drive positive environmental impact,” says William Xiong, Vice President of Alibaba Cloud Intelligence. “By leveraging our advanced cloud infrastructure and expertise in sustainability technology, we are enabling value chain partners to trace materials with enhanced transparency and efficiency as well as to optimize their carbon footprint to achieve their sustainability target. This partnership exemplifies the transformative power of technology in creating a more sustainable future.”

The joint solutions offered by the two parties have already been implemented in the consumer goods sector. For example, ����AV collaborated with China’s leading beverage maker Nongfu Spring to recycle its 19-litre water barrels into post-consumer recycled polycarbonate. The material was then used by KACO, a niche stationary brand in China, to produce gel pens. Through Alibaba Cloud Energy Expert’s carbon emission accounting and digital tools, consumers can scan a QR code on the packaging of the pens to trace the origin of the material, see a detailed breakdown of the carbon footprint at each stage in the production chain and the number of carbon emission slashed compared to the virgin materials.

The advantages are obvious: customers do not need to invest in expensive prototype tools and replacement materials or in complex color matching processes. ����AV expects that initial sampling loops can be carried out completely virtually to a certain extent – this saves time and material resources. In future, the company will offer all services related to sampling under the Imagio^® CQ brand. The suffix "CQ" stands for Circular Intelligence and emphasizes that the technology makes its contribution to a circular economy in the form of significant material savings.

ʺOur strategy is to get in touch with our customers at an early stage of product design, when the first material specifications are being defined,ʺ explains Dr. Tobias Rausch, Business Development Digital Sampling in the Engineering Plastics business unit at ����AV and head of the project. ʺWe also want to facilitate collaboration between cross-site teams with new digital tools such as catalogs and material twins.ʺ

Faster and more efficient

Customers' product development requirements are constantly growing: they want to be flexible in their choice of materials and increasingly value a more sustainable origin. At the same time, they want to bring their products to market faster while increasing efficiency and saving costs. In addition, they often work in several teams across regions, which need to communicate effectively with each other and also exchange sample parts.

The optimal solution for these requirements is to involve ����AV and its Imagio^® CQ program at an early stage. This enables customers to make a material decision more quickly and generate and visually evaluate sample parts in the early stages of development. This saves time and costs during specification, and the suitability of more sustainable plastics can also be tested at an early stage. In the three-dimensional space of color, material and finish (CMF), the possibilities are almost unlimited.

The backbone of the digital solution is X-Rite/Pantone's Total Appearance Capture (TAC) technology, which captures optical properties such as color, gloss, transparency, translucency or texture of a specific material sample using an optical appearance measurement device. The data is stored in a special data format. This is supported by leading rendering software tools that ����AV customers use for their design and marketing visualization. ����AV's Color & Design Centers (CDCs) in Filago, Italy, Newark, USA, and the Caojing and Guangzhou facilities in China are already equipped with the technology to create digital twins of materials.

A new tool for sales and marketing to search for color combinations – the Imagio^® Color Finder (ICF) – also serves to achieve this goal. Overall, ����AV expects a shift from costly color matching requests in the CDCs to existing color codes with a better search experience.

The Imagio^® CQ family has now been expanded to include a module called Imagio^® Optical Material Data. The target group here are experts from the field of development and simulation of optical components, i.e. vehicle headlights and interior lighting, as well as general lighting. The module is already being tested with customers and will be the first Imagio^® module to be available after the required registration. On the one hand, it will be possible to search specifically for optical material properties in our EP portfolio, and on the other, ����AV will provide the necessary data for optical simulation programs such as Ansys Speos, Optis LightTools or customers' own simulation solutions.

It is not without reason that the 14 sensors and cameras are located in the roof module: At the highest point of the car, they are ideally positioned to provide a complete overview of the surroundings. The lightweight plastics also ensure a low center of gravity for the vehicle and thus better road holding. However, while technology developments for autonomous driving are making progress, previous solutions for positioning the sensors are often not yet visually satisfactory. Webasto has now presented a new concept that also meets demands for aesthetic vehicle architecture.

"We are proud to work with Webasto and other partners to develop innovative solutions for autonomous driving," says Dr. Fabian Grote, Head of Global Technical Marketing Mobility in ����AV's Engineering Plastics segment. "The complete sensor technology is hidden under a seamless roof module made of Makrolon^® AG. Our plastic is lightweight, durable, robust and transparent, and offers an ideal solution for integrating sensors into vehicles. We are pleased to be contributing to more sustainable mobility."

The sensors and cameras measure the distance and speed of objects in front of and alongside the vehicle and also reliably detect traffic lights, traffic signs and road markings. To function optimally, they must not get too warm. This is ensured by a thermal management system from Webasto. Here, the high heat resistance of polycarbonate ensures that the roof module retains its shape even at high outside temperatures and in strong sunlight and does not impair the function of the sensors. Cleaning and de-icing systems, on the other hand, ensure flawless operation in winter.

Cooperations with leading automakers

����AV is also a leading supplier of material solutions for autonomous driving and is working with various partners on the use of special polycarbonate grades for the cover panels of LiDAR sensors. At the International Symposium for Automotive Lighting (ISAL) in Darmstadt, Germany, Sept. 25-27, 2023, the company will showcase a roof module equipped with LiDAR sensors from Chinese automaker Human Horizons.

Human Horizons is equipping its new HiPhi Z model with LiDAR sensors protected by a housing made of PC-PET Makroblend^® UT235 M. The optical signals from these sensors pass through a cover glass made of the special polycarbonate Makrolon^® AX ST, which ensures maximum efficiency.

A total of a dozen cameras and several LiDAR and RADAR sensors are installed in the Chinese luxury model. As a result, it achieves driving assistance level 3 of autonomous driving.

����AV’s climate impact in the manufacture of its products can be assessed using the product carbon footprint from cradle to gate, which can be calculated automatically for about 50,000 intermediate and finished products. At the moment, the results are being validated in order to make them available to customers gradually in 2024. In the meantime, ����AV continues to deliver data from a manual process using a life cycle assessment tool and a method that was certified according to ISO 14040/44 and ISO 14067 last year by TÜV Rheinland Energy GmbH. The automation of the calculation will enable ����AV to determine the specific carbon footprints for products in its entire product portfolio and identify potential for reducing greenhouse gas emissions. Additionally, ����AV plans to provide its customers in future with data on the products for sale, thereby contributing to an emissions assessment and a potential subsequent emissions reduction on the customer’s side. In addition to the carbon footprint, the digital solution also enables the calculation of other environmental impact categories, such as the acidification- or photochemical ozone creation potential. 

The calculation considers emissions of raw materials used, energy consumed, direct emissions generated, and waste streams generated during the manufacture of a product. The calculation is based on ����AV’s internal plant- and site-specific data as well as external databases for e.g., raw material data and, if available, specific raw material data from suppliers. The data that is calculated includes intermediate and finished products, meaning that the entire value chain for the products all the way to the ����AV gate is taken into account.

“We all want and need to reduce emissions along the value chain – this applies to us at ����AV just as much as it does to our suppliers and customers. Our customers’ requirements are clear: to provide data for all our products and to identify opportunities to reduce emissions,” explains Lynette Chung, Chief Sustainability Officer at ����AV.

Digitalization as a core component for generating sustainability data

����AV has now taken a major step forward in automated calculation. Information on material and energy consumption is pulled from existing data sources and systems, such as enterprise resource planning (ERP), and merged with data from databases in the cloud. ����AV uses the Product Sustainability Platform from AllocNow GmbH for this purpose. The software company specializes in the automated calculation of life cycle assessments for chemical products. In the future, further supplier data could be reflected in the calculation. “In 2022, our portfolio had about 50,000 intermediates and finished products. The manual calculation of life cycle assessment data for just one of these products took several days,” explains Michaela Lentz, IT & Digital Transformation Partner for Sustainability at ����AV and IT lead for the project. “By combining and using the data, we can now calculate greenhouse gas emissions in production for a single product. Annual recalculations and future process changes can be retrieved at the push of a button, so to speak. Our software solution has been developed directly in the cloud,” Lentz continues. ����AV does not need to maintain server capacity for the annual recalculation of LCA data, but can scale up computing capacity as needed. The company is thus very resource-conscious in its use of server services and is making a further contribution to its sustainability goals.

“����AV’s manual life cycle assessment calculation process was already reviewed against ISO 14040/44 and 14067 and certified by TÜV Rheinland Energy GmbH last year. Now we are seeking additional certification according to the relevant ISO-standards and in alignment with the Together for Sustainability (TfS)-guideline for the automated method,” says Dr. Catherine Lövenich, the project manager who works at Group Innovation. “The method is very complex. Take MDI, for example, a typical precursor for insulation foams. ����AV purchases the raw material benzene, which is then converted into the finished product MDI via several intermediates using energy and other raw materials,” Lövenich explains. “All these steps and the use of the raw materials employed are included in the calculation of the carbon footprint for a particular MDI type.” Since both the quality of the methodology and of the data are important to ����AV, the results are being validated at ����AV. Validation of the data should be completed by the end of 2024. In the meantime the current manual approach will keep supporting with customer requests.

Digitalization is a major driver to improve sustainability and achieve the circular economy. ����AV is focusing on more data-centric business management to achieve digital transformation. Production, Research and Development, and Supply Chain Management are the three divisions that are currently the main focus.

"For me, the chemical industry is predestined for the use of AI because we have a lot of complex processes going on that cannot be described by fixed rules," says Walter Grüner, Head of IT & Digitalization at ����AV. "They are not suitable for automation. We rather need learning systems to which we grant a certain degree of decision-making autonomy. In doing so, we focus primarily on the development of systems that work in a complementary manner to humans and support their abilities."

With the introduction of AI in the chemical industry, questions about technical, operational and organizational implementation are also increasingly emerging. This includes, for example, the role of AI in decision-making, but also its implementation along value chains.

Artificial Intelligence – great opportunity for chemical industry

Under the motto "Shaping industrial change with AI", the participants exchanged in a generic way views on the following topics:

• AI system to assist decision making or as an autonomous decision-maker?
• AI awareness, literacy and capabilities
• Production technology vs. supply chain management: independent or joint optimization?
• Needs and requirements for external data generation (monitoring)?

"It is precisely the exchange across company boundaries that helps us a lot in the upcoming transformation because overall challenges become clearer," says Nils Janus, Global Head of Advanced Analytics at ����AV. "This increases efficiency and saves time."

Overall, there was agreement among the participants: Artificial intelligence offers great opportunities for the chemical industry. The new systems help to create a common ecosystem for cross-divisional production planning. It must be decided on a case-by-case basis and each company has to decide individually and independently how much autonomy these systems will be given. With regard to access to the systems, the participants saw a strong democratization of artificial intelligence. Companies could support employees in learning more about data and AI and bring them into contact with experts when it comes to the widespread use of AI solutions in the company. The generation and dissemination of ESG (Environmental, Social and Governance) data are currently the biggest drivers for using external data sources. Here, all participants saw opportunities to intensify the use of external sources.

Digitalization drives sustainability

Digitalization is a key driver to improve sustainability and make the circular economy a reality. ����AV is focusing on more data-oriented corporate governance to drive digital transformation.

����AV is advancing the use of artificial intelligence (AI) both in its own company and in the chemical industry. To this end, the materials manufacturer is investigating how digital technologies can make processes more efficient and sustainable as part of several pilot projects across different divisions.

The DPP of the venture is a universal and interoperable platform that provides ingredient transparency about a product for all stakeholders across industries and across Europe. It provides factual, objective, measurable information on product ingredients, components, provenance, and attributes like CO₂ footprint, recycled content and recyclability.

Sascha Bloemhoff, Marketing Director at Niaga^® and responsible for the DPP: “Most systems today are linear, tracing only high-level data. Such systems lack crucial pieces of ingredient information needed to close the loop. Detailed ingredient knowledge is a must, if we want to avoid downcycling of valuable materials during recycling, whatever the product or industry: electronics, clothing or the building sector.”

Martin Snijder, Circular Economy Orchestrator at EIT Climate-KIC: “The DPP radiates circularity in every aspect, as do Niaga®’s core activities. The DPP is under development and managed by an experienced and convincing team. The jury hopes the minimum transparency level of the Niaga^® DPP will become the standard in Europe.” 

Winning the prestigious prize is the recognition of the Niaga^® DPP as a key enabler for circularity and underlines the importance of material stewardship, transparency and traceability in achieving a truly circular economy. Lynette Chung, Chief Sustainability Officer at ����AV: “In order to achieve a fully circular economy, we need to connect stakeholders and transport knowledge along the value chain, and support consumer trust and demand for more sustainable product offerings. It’s why we’re particularly proud of our innovation venture’s DPP being recognized as a key enabler for a no-waste, circular economy. The DPP provides essential infrastructure for a sustainable future and is a viable solution that also protects users’ IP sensitive information.”

Sascha Bloemhoff adds: “It is our mission to design out waste. Our key learning in our journey has been that to make return, and with it, reuse, repair, refurbishment, and recycling possible we need the full disclosure of a product’s ingredient, material, and component information. Moving from theory to practice, pointed us in the direction of our universal and interoperable product passport. Because our DPP revolves around ingredient transparency – not just traceability – it’s a solution that helps to put valuable materials centre stage. Because in a true circular economy what is a polyester sweater today, could become a car seat tomorrow and a mattress in the future.”

About Niaga^®: 
We are on a mission to design out waste completely. We are passionate about transitioning to a circular economy, bringing reuse, repair, refurbishment and recyclability, from theory to practice. In our view, a product is only fully circular if it contains clean and infinite materials, reversible connections, and if it is returned for material reuse. That’s why return is key.

Together with our partners we (re)design with the end in mind. We design to use again. The scannable Niaga^® tag enables users to see what a product is made of and how to return it after each use-cycle. Behind the tag there is a brand neutral DPP. This helps all parties in the value chain to keep valuable materials in the loop for future generations. Niaga^® is part of ����AV.

Contact
Sascha Bloemhoff, Marketing Director Niaga^®
sascha.bloemhoff@covestro.com
Tel. +31 6 200 150 64

One particularly sensational application is the possibility of superimposing changing information on the edge of corrective lenses for eyeglasses. This turns ordinary visual aids into smart data glasses. For instance, wearers of data glasses or head-mounted displays can communicate with experts remotely during inspections or service work, while keeping their hands free for work.

META is presenting itself at the show as a one-stop shop for advanced optical components: "We are pleased to present a range of smart applications that can be embedded in correction lenses for augmented reality (AR) glasses," said George Palikaras, president and CEO of META. "Our collaboration with ����AV enables us to offer highly functional, advanced materials and proprietary systems for high-volume production from a single source."

META's one-stop-shop approach, combined with ����AV's Bayfol^® HX technology, offers a number of benefits for OEMs. A wide variety of holographic optical solutions can be realized with a wide range of material thicknesses and formats. "The strength of our strategic collaborative effort is based on the versatility of combining Bayfol^® HX films with META's ARfusion™ lens casting technology," emphasizes Moritz Winterstein, Head of Growth Ventures Specialty Films at ����AV. The eyeglass lenses, including the volume holographic elements, can be produced in high volumes and cost-effectively - thanks to roll-to-roll coating and deposition technologies as well as state-of-the-art plastic processing. META and ����AV cater to the entire value chain, from optical design and material selection, to mass production and integration.

����AV will showcase the development during , September 14-16. For more explanations, join the webinar with digital printing and coatings experts Dr. Fabian Schuster and Dr. Inga Noll on September 15 starting at 3 pm CEST.

In conventional automotive OEM coating, multi-layer, 1- or 2-component coatings are typically applied by spray. Polyurethane coatings based on Desmodur® hardeners from ����AV used for this purpose feature proven good chemical, scratch and weather resistance, they are high-gloss and represent the state of the art in automotive OEM coatings.

However, spray application causes overspray and high energy consumption during drying, but above all during conditioning of the process air. In addition, in the case of multicolor painting, the painted body parts have to be masked with films at great expense for protection. If, in the future, paints with different functions are to be applied that are particularly resistant to UV radiation, bird droppings or stone chips, for example, the process becomes even more complex.

Advantage of digital printing

Digital printing makes efficient use of coating quantities, and there is no overspray. Car manufacturers can also dispense with covering steps, thus reducing investment costs for painting equipment. Instead, individual colors and functions can be implemented efficiently. Aliphatic Desmodur® raw materials ensure non-yellowing coatings with additional, proven benefits.

The project is part of a comprehensive program with which ����AV is systematically driving forward digitalization. One of the three pillars of the "Digital@����AV" program is the development of new business models and digital technical services. One focus area is a more efficient production at customers and the digitization of entire value chains. The two other pillars of the program are focused on digital operating processes in the company's own production and the development and use of digital chemical trading platforms.

“With the help of artificial intelligence, we will be able to find digital solutions across departmental boundaries in the future that were not possible before. This opens up completely new possibilities to achieve greater sustainability with improved resource utilization and thus to serve the needs of our customers even more precisely,” says Sucheta Govil, Chief Commercial Officer of ����AV.

Pilot projects put the use of AI to the test

At its Dormagen production site, ����AV is testing how the manufacturing process for polyesters can be optimized. Polyesters are needed for the production of polyurethanes. The use of artificial intelligence in the processing of the company’s comprehensive process data is intended to create free production capacities and minimize energy consumption. Digital technologies are also used in Dormagen and at the Leverkusen and Krefeld-Uerdingen sites to predict the peak steam consumption of production plants. In this way, energy consumption and costs can be reduced in the long term.

Another project deals with the digital customer experience. Machine learning is used to help to identify potential customers for ����AV at all digital touch points on the Internet and social media. The aim is to win them over as customers in the long term through consultation and information. Artificial intelligence will also be used in ����AV’s purchasing department in the future. Faulty invoices can then be identified with less effort, making the invoicing acknowledgement process much more efficient.

Utilizing data science for more intelligent production

“AI is a fascinating opportunity for ����AV worldwide. The ongoing projects show that data and its proper use not only make the entire industry smarter and faster, but can also contribute to the bottom line,” says Nils Janus, Head of Advanced Analytics at ����AV. To make optimum use of data-based findings in the future, the materials manufacturer has developed the ����AV Analytics Platform (CAP), a platform for data scientists. It collects raw data from production plants, research results, and business processes and supplements it with external databases to perform analyses and train machine learning models. In this way, ����AV is taking another important step towards digitalization and data-driven business management.

“Quantum computing opens up groundbreaking new perspectives for our industry. We therefore want to invest specifically in the further development of this technology and build up expertise”, said Dr. Markus Steilemann, CEO of ����AV. “The partnership with Google gives us the opportunity to do so and is so far unique in the chemical industry.”

Quantum Computing opens up new dimensions

����AV has already been investing extensively in digital research and development for around three years. The novel quantum computing is another important milestone in the search for new, digitized research processes. This forward-looking computer technology is the key to knowledge that is needed, for example, to successfully advance the circular economy. With the help of quantum computing, details of highly complex chemical reaction processes can be digitally simulated and evaluated in a very short time.

Hartmut Neven, head of the Google AI Quantum group states: “We are advancing quantum computing by developing quantum processors and novel quantum algorithms to help industry researcher partners solve problems. We are looking forward to the collaboration with the very strong team of scientists at ����AV.”

Quantum computing will help Google to develop the innovations of tomorrow, including AI. That’s why the company is committed to building dedicated quantum hardware and software today.

Quantum computing is a new paradigm that will play a big role in accelerating tasks for new computing capabilities. Google wants to offer researchers and developers access to open source frameworks and computing power that can operate beyond classical capabilities.

With quantum computing, ����AV intends to build on the success of previous investments and further deepen its global competencies in computational chemistry. In the long term, the technology can go far beyond the possibilities of high-performance computing. With the expansion of a classic high-performance computer at the Leverkusen site for computer simulations and a new, global platform for research data for more than a year, ����AV has been tapping into the value-added potential that the digital transformation of the chemical industry is opening up.

Access to technology and know-how

The partnership on quantum computing between Google and ����AV forms the basis for joint scientific cooperation. The main goal is the further development of quantum computing technology and how it can be used to solve chemical problems in the future. Google provides the hardware and access to its technology experts. Thus, ����AV takes a pioneering role in digital research and development to test and further develop the new methods of quantum computing for the chemical industry.

“We’ve seen very positive progress in our collaboration with Tongji University in the academy during the past year. Together we have launched projects that will drive the industry and entire economy towards more sustainability and in particular promote the transition to a Circular Economy, also on a global scale,” says Dr. Markus Steilemann, CEO of ����AV, on the occasion of the yearly Academy meeting via digital conferencing. “In China, we are always committed to open innovation, and we will continue to work closely with our partners to advance all these initiatives.”

For example, the joint Academy has been exploring battery thermal management systems for EV cars and energy storage, which will be important to become more cost competitive in the course of lowered CO2 emissions. Other projects included the development of new materials for next generation of lithium-ion batteries, and exploring 3D-printing-enabled structures for absorbing striking energy in order to improve the safety performance of the EV battery. Elsewhere, the academy is also studying flexible sensors materials for robot skin applications, as bionic robots are set to provide indispensable support for an aging population in China.

For this year, a circular economy-themed students competition in China will add to the Academy’s calendar in order to encourage further efforts in sustainability. The competition will target the reuse of polyurethane foams from mattresses, and students are encouraged to unleash their creativity in business and technology study to work out innovative ideas, while getting support from experts at ����AV and Tongji University. The winning plan may be supported as a practical project in 2021 at the ����AV-Tongji Innovation Academy.

Prof. Dr. Wu Jiang, Executive Vice President of Tongji University adds, “We are excited to see our cooperation with ����AV, a leading materials company, to make strong progress in the emerging fields that will help foster sustainability in the future. Our alliance is a great example of industry-academia collaboration, and we are fully confident that the academy will step up transforming great ideas into real innovations and business models to be widely used in downstream enterprises.”

“We see open innovation as key to our success, which includes exchanges and collaborations along the value chain. I am glad to see solid progress and achievements in market-driven innovation, digitalization and sustainability from the Academy to drive the transformation of creativity into promising business models,” says Dr. Michael Schmidt, dean of the Academy and Head of Innovation for the Asia-Pacific region at ����AV. “We are on track to form a powerful industry-academia ecosystem with complementing capabilities to further empower our business, industry and economy in the future.”

The most recent example: ����AV invests in the French technical start-up company (C.S.T). With this investment, ����AV strengthens its business with special films for ID documents and secures exclusive access to the Optical Variable Material (O.V.M^®) technology for polycarbonate and polyurethane materials. This innovative technology developed by C.S.T enables new security features and makes identification documents even more forgery-proof than before.

Focus on established start-ups

����AV's research and development (R&D) processes are always based on UN sustainability goals, which is why these goals also play an essential role in the selection of planned start-up investments. Consequently, five focus areas have been defined for COVeC to invest in: bio-based raw materials and biotechnology, additive manufacturing such as 3-D printing, circular economy, digital technologies, and new markets and technologies for existing core businesses.

In its selection of start-ups, ����AV primarily focuses on businesses in Series A and Series B financing rounds. “Our clear focus is set on scaling up businesses that are still young, but not entirely new. However, we are not ruling out any cooperations with start-ups at an earlier stage; for this we use our proven Open Innovation approach,” explains Dietrich Firnhaber, Head of Strategy and Portfolio Development at ����AV. ����AV intends to invest up to five million euros in initial financing rounds per project and, in individual cases, will participate in subsequent follow-up financing. The Board of Management must approve the financing project; there are no plans to set up a stand-alone fund for the venture activities.

����AV made its first venture capital investment last year and took a stake in the German start-up as part of a Series B financing round. Together with the young venture, ����AV plans to actively promote the development of an international infrastructure for hydrogen as an alternative source of energy.

Start-ups and scale-up companies can obtain further information on ����AV Venture Capital (COVeC) and the respective contact persons on our website: www.covestro.com/venturecapital

“With this step, we are strengthening our position as an innovation driver in special films for ID documents,” says Dr. Thorsten Dreier, Global Head of the Specialty Films business at ����AV. “With the new partnership and the introduction of Makrofol^® ID O.V.M^® films we are creating a new degree of security.” ����AV has many years of experience in the development and production of films for .

Cosimo Prete, President and founder of C.S.T, also welcomes the new strategic cooperation: “We value ����AV as a very innovative partner in the development of film solutions for the production of identification documents and look forward to working together in this growing market.”

Security features for easy contro

To prevent document attacks through forgery, manipulation and identity theft, ID documents such as ID Cards or passports are equipped with various security features. In routine ID checks, visible and haptic level 1 elements in particular are becoming increasingly important, as they can be checked quickly and without additional technical equipment.

����AV and C.S.T have been working together in this field since 2016. Last year, ����AV introduced the transparent Makrofol^® ID O.V.M^® film to the industry. The O.V.M® material technology creates a completely new color change effect, which is a very strong level 1 security feature. The new film can be integrated into existing card manufacturing processes without further modifications.

The first international data science hackathon, which ����AV organized in advance at three universities worldwide, was won by a student team from RWTH Aachen University, Germany, with a model for an improved production process based on machine learning. The students were honored at the conference and received the global winner’s award in Leverkusen.

Recognizing synergies and exploiting potentials

“We have not yet exploited the full potential of these new technologies. We must continue to develop the interaction between humans and artificial intelligence for our industry and ensure that data and intellectual property remain secure. If we are to remain successful in the long term, we must tackle this challenge now,” said Sucheta Govil, Chief Commercial Officer of ����AV and responsible for innovation. “Only by working together can we find the answers. That's why cooperating with leading partners in industry as well as with customers is so important.”

“Data sciences have the potential to significantly change our entire value chain, from research and development to production and logistics to sales and marketing,” said Kemal Malik, Member of the Board of Management for Innovation at Bayer. “We are already seeing the enormous potential of data science in the life sciences, for example in digital agriculture and precision medicine. At the same time, digital technologies will play a key role in helping us achieve our global sustainability goals. Partnerships with universities, start-ups and other large companies are essential in this dynamic environment.”

Henrik Hahn, Chief Digital Officer of Evonik, said: “I consider Data Science to be an application-oriented science in the truest sense of the word and thus far more than a business intelligence Ferrari. While BI enables better decisions to be made on the basis of the known, data science knowledge starts with the unknown. And this can also bring decisive competitive advantages in chemistry. At Evonik, we have therefore set up central contact points for data science. To put it in a nutshell, we are looking at how we can jointly develop a powerful magnet internally. We want to use it to find the famous needle in the haystack sooner. Gathering the right data with the right tool – that's what it's all about.”

Hackathon winners announced

Practical questions from the supply chain and production of the chemical industry were solved by around 90 students of data and engineering sciences in the first global hackathon. ����AV had asked the leading universities Carnegie Mellon University in Pittsburgh, Tongji University in Shanghai and RWTH Aachen to compete simultaneously for three days in November. The winner with the best solution was Team “Datavengers” from RWTH Aachen , which received an award in Leverkusen. “The students developed novel answers using different methods of machine learning. They demonstrated that data and its proper use can make the whole industry smarter and faster,” explained Nils Janus, Head of Advanced Data Analytics at ����AV. “We are demonstrating that the chemical industry can be an exciting employer for smart data scientists.”

Canada-based start-up North is a pioneer in this market by launching the first commercial smart glasses called Focals^® that look like everyday glasses. One of the many challenges with developing such complex devices is not sacrificing form factor for functionality, thus maintaining the appearance of standard glasses. ����AV’s Bayfol^® HX products offer cutting edge solutions to enable high performing yet design-appealing smart glass products.

Since the inception of Focals^®, ����AV has been the strategic supplier of tailored materials for North’s diffractive optical solutions. “North is engaging with ����AV in development efforts involving the use of certain ����AV customized photopolymer films, to obtain excellent optical performance and outstanding cosmetic appearance in seethrough AR applications on North devices,” said Stefan Alexander, Vice President, Advanced R&D at North.

Extended battery life through photopolymer films

A challenge with all mobile computing platforms is battery life, which ����AV’s photopolymer helps maximize. "In mobile applications where battery life is decisive, low energy consuming devices can be realized with Bayfol^® HX film," explained Dr. Friedrich-Karl Bruder, Head of Application Development Holographic LightGuiding at ����AV. “This is due to the distinct feature of volume holograms recorded into our film that allows a high diffraction efficiency for light guiding and light redirection which can be tuned to almost 100 percent.”

Thanks to its long-standing expertise, ����AV is well positioned to provide innovative solutions in holography technology and photopolymer chemistry. "Our experience built over the past decade enables solutions for specific requirements,” said Thomas Roelle, Head of Raw Materials for Holographic LightGuiding at ����AV. “����AV’s infrastructure is set up to translate complex optical needs into viable material solutions on an industrial scale."

Sustainability as a catalyst for ideas

“The winning idea has the potential to respond to the major challenges of our time, such as climate change and global population growth, and to contribute to sustainable mobility,” said Sucheta Govil, Chief Commercial Officer of ����AV and responsible for innovation. “Our goal is to use our solutions to expand the circular economy in the plastics industry and make the world a better place to live. The ideas and teams that took part in the Start-up Challenge help us to achieve this goal faster by designing concepts for more sustainable product lifecycles.”

The six best start-up teams have been intensively preparing for the grand finale over the past few months. The winners ultimately prevailed against five other projects from different business areas. In total, more than 200 applications for the second round of the internal competition were received worldwide this year.

Employees become start-up founders

For this year's winners, it's now time to get down to the business of being a founder. They will be released from their jobs for up to a year in order to realize their business idea and test the marketability of the products. ����AV will provide them with start-up financing of up to one million euros. This gives the team the chance to act as a start-up within the company and to prove their skills as founders under real conditions. With the Start-up Challenge, ����AV aims to promote the creativity and entrepreneurial thinking of its nearly 17,000 employees.

The second award, the ����AV Science Medal, goes to a team of ����AV chemists and engineers. Dr. Rainer Weber, Andreas Bulan, Michael Großholz, Rainer Hellmich and Giorgio Dolfini have developed and successfully applied a groundbreaking scientific research on producing a basic chemical with less energy consumption and thus less environmental impact: they have succeeded in saving 25 percent of electricity when producing chlorine. They accepted the awards during the ����AV Science Celebration at K 2019. Held every three years, K 2019 is the world’s leading trade show for the plastics and rubber industry. It takes place October 16-23 in Düsseldorf, Germany.

“These pioneers in industry sustainability and applied artificial intelligence contribute to a new era of material science,” said Sucheta Govil, Chief Commercial Officer of ����AV, responsible for innovation. “Only science can provide breakthrough solutions for the future. We want to reward the outstanding contributions of these scientists and researchers in the fields of sustainability and digitalization. By fostering open innovation of academia and industry we help to speed up solutions for our customers and thus keep pushing the boundaries of what is possible.”

Machine Learning in lab research

Dr. Washburn was singled out for a proprietary technology that solves a common industry challenge. Traditionally, formulating polyurethane elastomers, foams and coatings to a customer’s exact specifications is a time-consuming process, filled with trial and error in the lab. Dr. Washburn’s Hierarchical Machine Learning approach, developed in collaboration with Dr. Barnabás Póczos in CMU's Machine Learning Department, leverages data analytics and simulation to more quickly determine the formulation that meets sustainable customer requirements. Dr. Washburn is working closely with ����AV experts in the Coatings, Adhesives and Specialties, and Polyurethanes businesses to optimize this novel approach.

“The experience I’ve had with ����AV has been extremely valuable,” said Dr. Washburn. “I’m thankful for the opportunity to work with an organization that nurtures innovation and recognizes the value it brings to its business, and the business of its customers.”

Energy saving chlorine production

The second rewarded innovation points out to a more sustainable production. About two thirds of all chemical products need chlorine for their production which is generated in an electricity consuming process. ����AV helps to change that. Together with industry partners the team of chemists and engineers developed a process that reduces the amount of electricity needed by around 25 %.

The principle of chlorine production has been well known for more than hundred years. It works via electrolysis - meaning sending power through a saline solution. The novelty within ����AV´s newly developed process is: the hydrogen producing electrode is replaced by a so-called oxygen depolarized cathode. This was developed by ����AV and it works with two volts instead of three.. In the upcoming years ����AV will introduce this process in two of their plants and thus save up to 40.000 tons of CO₂ per year.

“The entire pilot project is a great chance to illustrate the potential and the outstanding properties of our materials,” says Sucheta Govil, Chief Commercial Officer of ����AV. “Innovative, adaptable materials will give us creative freedom to accelerate the distribution of key digital technologies with user-friendly solutions in the near future.”

New telecommunications infrastructure

The companies are complementing one another's strengths as they work on the project. ����AV develops innovative and sustainable material solutions that have already proven themselves in a variety of electrical and electronic applications, and that fulfill high technical requirements. Telekom contributes its technological expertise on antennae for mobile wireless and network expansion. Students at the UID conceptualize the creative designs. They began by carrying out a study on the ground in Düsseldorf. Then, they drafted attractive antenna housings with colors and structures that met technical and aesthetic requirements. This resulted in a variety of design concepts. Now, there are two example models: a bird and a clock. The concept called “The Bird” considers 5G from a new standpoint, and pushes the limits of what is possible. The clock design, “24h5G,” integrates new material properties like translucency and thermal management for 5G small cell antenna housings. Trade fair visitors can view the exhibitions today at ����AV's stand at “K 2019.” K is the international specialist fair for plastics and rubber held in Düsseldorf.

Compact antennae provide a targeted boost to data capacity

In the future, Telekom will be installing more small cells for 5G, for instance in stoplights, lanterns, or facades. These compact antennae have a range of around 200 meters. They are connected to the Telekom network via fiber optics. This allows data to be transported extremely quickly, ensuring future networks are extremely powerful. Alongside traditional locations, this allows the network to provide the coverage and capacity necessary for the growing number of wireless devices. Telekom already uses small cells in its LTE expansion.

“In the design project with ����AV, we were able to place our technical requirements early on and work together with the students on their design ideas,” says Thomas Jansen, Head of the Small Cell Competence Team at Deutsche Telekom Technik. “Together, we have developed powerful 5G solutions that can be harmoniously integrated into the cityscape.”

"The Internet of Things and Artificial Intelligence are driving the design of living spaces in the future," says Jonas Michels, Senior Design Strategist, Competence Lead Brand and responsible for Design Strategy at . "We believe that future home products will become more automated, personalized, humanized, integrated and interactive than ever before."

To better cope with these trends, designers and manufacturers need a reliable and versatile material partner, such as ����AV, who is exploring lifestyle and home appliance development and supporting partners in the implementation of innovation. "We meet these challenges by jointly designing and developing advanced product concepts. The close collaboration between ����AV and designaffairs will make our visionary designs a reality," says Jonas Michels.

Design trends up to 2024

"We are exploring how the design of home products will change over the next few years, so we can speak the same design language as our customers and offer material solutions that fit the future trends and requirements," says Dr. Andreas Brandt, Vice President Marketing for Electronics, Electrical, Appliances in the Polycarbonates segment at ����AV. "����AV is a leader in the development of lightweight, flame-retardant and impact-resistant engineering materials based on polycarbonate. We are committed to driving digitization within future homes and contributing to a more sustainable and connected future."

Material solutions must balance aesthetics and functionality to provide greater design freedom in creating sustainable products. They have to facilitate CMF design (CMF means color, material, surface) to achieve the desired look and feel. Additional requirements are related to connectivity, smarter interfaces and automation features. Sustainable materials must meet higher product safety standards and be easy to maintain. Finally, products or their components should be reusable at the end of their useful life.

From the IoT control unit to the multifunctional work area

At K 2019, ����AV will be presenting trendsetting design concepts, cosmetic models and relevant material solutions for these devices at Booth A 75 in Hall 6:

• Intuitive IoT control device (Internet of Things) with personalized access control and tangible user experience.
• Cord-free air care: a portable air treatment unit with rechargeable Li-Ion battery and motion sensor; the high degree of standardization and modularization enables the use of recycled material as well as the reuse of product components.
• Intelligent skin care unit with sensor and light treatment functions and refillable cream cartridge to eliminate the need for disposable packs.
• “Cargo Bot" cleaning robot powered by Artificial Intelligence with additional transport functions that connect to an intelligent community and intelligent logistics.
• Multifunctional modular work zone that enables effective work-at-home and co-work activities that fit seamlessly into the interior design of the home and offer a high degree of adaptability.

We see ourselves not only as a plastics manufacturer, but also as a co-designer of the automobile of the future,” explains Doğan Ayger, expert for plastics applications in automobiles at ����AV. “With the concept studies we want to demonstrate that our construction materials facilitate technically innovative, economical, lightweight and visually appealing solutions for the next generation of roof spoilers”.

Excellent function integration, plenty of design freedom

The spoilers are equipped with numerous functions. These include sensors, cameras and 5G antennas. The latter, for example, perform important tasks in driver assistance systems. Rear lights and elements for ambient lighting are also integrated into the spoilers. Some of them are designed using black panel technology, which means that they look like flat, dark surfaces if the LED elements concealed behind them are not activated. The 3D surfaces of the spoilers can be designed in different colors and with adjacent high-gloss and mat areas.

Thanks to direct coating technology, component areas can be specifically coated or provided with functional coatings such as UV protection. “The freedom with which surfaces can be designed in terms of shape, color, gloss level and functions allows strong individualization of the spoiler design, which in turn makes an important contribution to brand and model differentiation,” explains Ayger.

Foamed parts for weight reduction

The concept components are optimized for low weight. And it is not just the low wall thicknesses and low density of the engineering plastics that make their contribution. Sandwich structures with a lightweight foam core made of expanded Makrolon^® (E-PC) can also be used, providing excellent thermal insulation.

The plastics developed for the spoilers are incredibly tough. It is maintained even in the freezing cold, which benefits safety. The dimensional stability of the thermoplastics is also high when exposed to heat, so that narrow gaps between adjacent components (zero joint optics) can be achieved.

Spoiler with improved aerodynamics

����AV materials offer active aerodynamics opportunities in the form of morphing elements and components. The aim is to direct the air flow such that the vehicle is pressed more strongly onto the road and consequently exhibits better driving dynamics. “In addition, plastic surfaces that reduce the air resistance of the spoiler and thus fuel consumption leading to lower emissions are also well at an advanced stage of development,” says Ayger.

“Thermoplastic polyurethane is the material of choice for this application thanks to its favorable range of properties,” says Patrick Rosso, Head of Additive Manufacturing at ����AV. “In particular, our TPU products cover a wide range of hardness. The hardness can also be adjusted by changing the printing structure. This allows manufacturers to print shoe insoles that are completely custom-made – with hard or soft contact areas.”

High functionality and durability

Together with a partner, ����AV is currently testing different sole designs to determine which are the easiest to print along with the most durable. Initial tests have been promising, both in terms of functionality and longevity. Orthopedic insoles are often produced by hand and take a lot of time.

Besides that, conventional insoles are e.g. made by forming or machining rigid foam blocks and are also less breathable. Using additive manufacturing offers a more sustainable approach to producers. It could help significantly more people to get access to orthopedic insoles.

Successful last production using 3D printing

Already back in May 2018, ����AV presented the design of an efficient complete solution for the manufacture of orthopedic shoe lasts at the OT World orthopedics trade fair in Leipzig. Thanks to 3D printing technology, the time required for production has been reduced from several weeks to just a few days. At the same time, patient visits to the shoe manufacturer can be reduced to a minimum. After the trade fair, customers expressed the idea of also printing the insoles instead of manufacturing them by hand as before. The idea and the favorable material properties of TPU were the reason for the current project.

The three new materials consist of:

• Polymaker™ PC-ABS – a blend of already commonly used 3D printing materials, polycarbonate and ABS. The advantages of this blend are high impact and heat resistantancy and easy processing. The polycarbonate boosts the heat resistance and toughness of the material while the ABS contributes to the good processing properties. This PC-ABS is also specialized for surface finishings, i.e. by electroplating and metallization, providing a good approach for post processing.
  
  Polymaker™PC-ABS uses ����AV’s Bayblend^® family as its base material which is a commonly used plastic in the automotive and information technology industry today. Polymaker™ PC-PBT – this polymer blend combines the good chemical resistance of PBT with the strength and toughness of polycarbonate. Polymaker™ PC-PBT performs very well under extreme circumstances whether in contact with hydrocarbon based chemicals or operating at subzero temperatures. The product maintains good toughness and its natural ductile fracture behavior at low temperatures.
   
• Polymaker™ PC-PBT is created from ����AV’s Makroblend^® family which is widely used in various industries. Compared to PC resins and PC-ABS compounds, PC-PBT has better resistance to chemicals, which enables printed applications where resistance to intermittent contact with fuels, oils, lubricants, cleaners is necessary.
   
• PolyMax™ PC-FR, a creation from ����AV’s Makrolon^® family, where the FR stands for flame retardant – the main feature of this polycarbonate based compound. This base material achieves V0 performance in the UL94 flame retardancy test and benefits applications where respective material approval is required. This allows PolyMax™ PC-FR to be applied for battery housings, motor mounts in aerospace and other industries. Within the automotive and electrical and electronics industry, many professionals are well accustomed with such FR materials.
  
  Polymaker have introduced their nano reinforcement technology that is featured in all PolyMax™ materials. This boosts the fracture toughness of the FR material and produces a flame-retardant filament that can still perform in demanding applications. PolyMax™ PC-FR uses ����AV’s Makrolon^® showing a good balance between mechanical performance and safety, which has already been applied in electronic motorbikes, aerospace spare parts, and automotive production.

The hub concept will support experts and partners with an infrastructure to work on five important pillars, for example in engaging with designers, start-ups and established customers to explore potential aesthetic and circular design of products. The new approach enables experts to reach out into the ecosystems to find partners for sustainability topics and circular economy, and helps to build networks for industries and applications where Chinese developments take a leading role such as mobility, robotics, hyperloops, bio-materials and drones. The concept also fosters projects on digital sales and new digital services with the help of tools such as artificial intelligence, voice recognition, and augmented reality. It also contributes to expand the existing network with universities and institutes.

“We will bundle our open innovation activities under one umbrella now,” said Dr. Michael Schmidt, Head of Innovation, ����AV, Asia Pacific. “We strive for a close and intense collaboration with our partners from all kind of industries with the goal to build a leading innovation ecosystem for our customers.”

����AV has been active in connecting with start-ups, academia such as Tongji University and cross-industry partners even before implementing a branded open innovation concept in China. It will now allow to accelerate the innovation cycles for different industries and customers. Recent open innovation examples can be seen at this year’s K Fair from 16 – 23 October 2019 in Düsseldorf, Germany.

Open innovation from China enabling digitalization

One of the recently developed innovations from China shown at K Fair are the high-performance materials used to expand 5G technology. 5G is becoming the basis for a fully mobile and connected economy. It’s a key technology for the digitalization of all areas of our life and the economy. The polycarbonates manufactured by ����AV for antenna casing not only show perfect signal transmission but also offer utmost design flexibility. A polycarbonate multilayer film solution results in mobile phone back covers that look like glass meeting the requirements for transmission of high radio frequencies with wavelengths in the millimeter range. In Asia Pacific, which leads in 5G network deployment, ����AV is working with the Southeast University of China on the optimization of radio frequency data transmittance.

Together with Haier, the world’s largest white goods manufacturer, ����AV APAC innovation team is driving digitalization in another area: At the Haier ����AV Digital Lab in Qingdao, the business partners are searching for a way to optimize production with improved insulation materials and for that leverage our digital expertise in China.

Fast and digital access to customers

In terms of addressing customers and suppliers, ����AV focuses on direct, digital channels. "We are observing that the Chinese market has high demands in terms of performance, especially in terms of digitization and innovation. In contrast to Western markets, Chinese customers expect faster delivery," Schmidt explains. The Alibaba 1688 Flagship Store and the ����AV Direct Store enable leading digital know-how in China and various digital channels as access to customers. In addition, a new WeChat account complements the digital sales channel offering.

Local innovation fast forward: wind energy and e-mobility

����AV is also committed to the expansion of renewable energies in response to the growing demand for wind energy. Together with global industry partners, a more efficient production of rotor blades based on a polyurethanes resin and glass fiber mats were developed in the APAC Innovation Center in Shanghai. In April, ����AV delivered the first order for the supply of polyurethanes resin for wind rotor blades in China.

����AV is driving another industry trend with lightweight materials for electric mobility. The endless fiber-reinforced thermoplastic composite material Maezio™, which is already available on the market, is used by Chinese and global automobile manufacturers such as Nio. Further innovations for new exterior applications as well as materials for new lighting and signal functions for autonomous driving will be exhibited at K Fair.

About ����AV:

With 2018 sales of EUR 14.6 billion, ����AV 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. ����AV has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.

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Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by ����AV. 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 ����AV’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.

Machine learning enables predictive maintenance

The materials manufacturer is therefore systematically tapping the potential of digitizing production processes. The so-called "predictive maintenance" of systems, for example, becomes even more reliable in combination with machine learning and artificial intelligence. This is shown by a pilot project of the polymer company. The temperature and vibration sensors installed in a large engine of the production plant transmit their collected data on the condition of the engine during operation to software. This enabled the team to predict possible engine failure eight months in advance. "Machine Learning and Artificial Intelligence provide a real improvement in the overall operation. We are convinced that this technology will prevail in all production plants in the future," summarizes Jane Arnold, Head of Global Process Control Technology. "The aim is to be able to intervene precisely in the production processes on the basis of a clear presentation of all information and thus continuously optimize them," Arnold continues. To this end, ����AV comprehensively analyses data from ongoing production and maintenance in order to be able to assess the behavior of machines and materials in advance and make appropriate recommendations. The system learns automatically.

Green light for Digital Twins

A central component in the digitalization of production processes at ����AV is the global project "Optimized System Integration" (OSI2020). Launched in 2017 with 12 sub-projects, the Board has now given the go-ahead for the second phase of the project. The roll-out of the already developed portal for integrated engineering and operation of production facilities at all major locations is planned. The Integrated Plant and Engineering Platform (IPEP) creates a virtual data model and a digital twin of each production plant. "The entire technical documentation of each plant is brought together in digital form in this type of database. This will benefit all production employees. IPEP will enable us to work even more securely and efficiently in the future and to access all data quickly and easily," explains Stephan Krebber, Program Director Digital Production & Technology. ����AV sees great potential in the intelligent linking of plant and process data, on the basis of which further applications could be developed.

About ����AV:

With 2018 sales of EUR 14.6 billion, ����AV 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. ����AV has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.

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Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by ����AV. 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 ����AV’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.

����AV offers material solutions for improved design compared to marketable products. The range is a response to the growing customer demand for materials with increased wearing comfort. ����AV offers the right combination of materials for the perfect lightweight, flexible and hardly visible patch that provides a comfortable feel. There is no comparable offer on the market so far.

Complete solution for modern wearable patches

For this purpose, ����AV has developed special breathable thermoplastic polyurethane (TPU) films from the Platilon^® range. The materials are perfectly suited and designed for customers using a roll-to-roll manufacturing process that allows wearables to be efficiently produced. The electronics can be printed on the film and embedded in thermoformable polyurethane foam covered with a second film layer for better wearing comfort. The patch is then fixed with a special skin-compatible adhesive, which adheres firmly to the skin but allows painless removal of the patch. The adhesive system and the thermoformable foam are based on Baymedix^® polyurethane raw materials. ����AV thus offers a complete solution for modern and high-quality wearable patches.

A prototype was produced in collaboration with the , which is known for its expertise in printed electronics and wearables. The materials being used are already ready for the market. In addition to the wearable patch, ����AV will present a design study at to present different wearable designs depending on their medical use.

����AV is providing convincing design and material alternatives to currently available wearable raw materials. The company is considering advances in printed electronics to demonstrate that its materials can contribute to a design with a stronger patient focus that takes into account patient comfort and skin sensitivity.

About ����AV:

With 2018 sales of EUR 14.6 billion, ����AV 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. ����AV has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.

Find more information at www.covestro.com.
Follow us on Twitter:

Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by ����AV. 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 ����AV’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.

A current emphasis of the new business models is the digitalization and optimization of process flows. By simulating process steps, development times at customers and along value chains can be reduced considerably, and process flows can be designed more efficiently. At the , for example, ����AV is presenting a new formula finder for viscoelastic foams, which are used primarily in pillows and mattresses – also in the medical and care field.

Calculating properties and formulas on the computer

“With an easy-to-use web-based calculation tool, customers can enter the desired physical properties of the foam and wait for the matching formulas to be calculated based on our raw materials,” explains Dr. Lutz Brassat, an expert for polyurethane flexible foam at ����AV. “It can also do the reverse and determine the properties of a finished foam for a predefined formula. In any case, it saves time and materials and also costs.” The company is also increasing the processing power in a research project and is investing in advanced hardware.

To develop the digital tool, an interdisciplinary team at ����AV first manufactured various viscoelastic foams with the aid of predefined formulas and identified their properties. Based on these data sets, the team then generated an algorithm, which uses the properties of these foams to calculate other foam densities, hardness levels and viscoelastic behaviors.

More comfort in bed

Viscoelastic foam provides a high level of comfort and is therefore enjoying increasing popularity among consumers. For older or bed-ridden patients, it effectively prevents dreaded bed sores. Under the influence of its own weight and heat, a body lying on the foam sinks slowly into it, but is also supported by it. A special feature of a viscoelastic foam is its shape memory: as soon as a person changes position or gets up, the foam slowly regains its original shape.

Comprehensive program for digitalization

����AV bundles its global digitalization activities in the comprehensive program “Digital@����AV,” which is based on three pillars. The first relies on digital operating processes in production. Its aim is to make the construction, operation and maintenance of global production facilities more efficient and transparent. This also includes evaluating real time data with the help of end devices, in order to optimize plant maintenance.

Another pillar of the digitalization strategy is a digital trading platform for chemicals, which was developed according to the needs of customers and is currently being tested. Here, customers can buy standard products efficiently online at current market prices. Since April 2018, ����AV has also been selling products via a flagship store on 1688.com. This online platform of the internet giant Alibaba is currently China's largest marketplace for business customers.

The third pillar involves new business models, primarily digital technical services. They are important for developing efficient production processes at customers and, above all, for digitalizing entire value chains. ����AV offers a comprehensive range of services here, which extends from chemical synthesis, to developing formulas, to processing and the subsequent handling of plastic products.

About ����AV:

With 2018 sales of EUR 14.6 billion, ����AV 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. ����AV has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.

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Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by ����AV. 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 ����AV’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.

With the installation of 5G, the demand for base stations, active antenna units (AAU) and other equipment will increase dramatically. ����AV is developing innovative and sustainable material solutions and contributing to a smart infrastructure, including sensor technologies and a digital communication environment. The company is cooperating closely with and the . ����AV will present some prototypes at . The project is part of the company´s comprehensive digitalization strategy. Together with its partners, the company is committed to achieving Goals 9 (Innovation and Infrastructure) and 11 (Sustainable Cities) of the UN's Sustainable Development Goals.

New telecommunications infrastructure

Polycarbonates and their blends have proven themselves in a wide range of electrical and electronic applications and, thanks to their outstanding properties, should also be the materials of choice for 5G technology: “They are mechanically robust, lightweight, transparent to radio frequencies and suitable for injection molding,” explains Fabian Grote, who is a core member of the global 5G team at ����AV. Some grades also show good weather resistance or thermal conductivity or are suitable for two-component injection molding and laser direct structuring (LDS).

To increase public acceptance of an expanded network of antennas and base stations, ����AV is working with students from the renowned Umeå Institute of Design and Deutsche Telekom to seamlessly integrate these technical facilities into the cities of the future. The project includes the development of attractive base stations, their color matching and surface structuring. Düsseldorf served as a reference city for the project.

Flexibility in antenna design

In this project ����AV will enter this market in a hypothetical scenario with its own product range. The actual product is the outer sheath of a third-party antenna, which is designed to adapt to specific environments by either fitting in or protruding from it, depending on the environment and population density. This is where the best potential can be exploited with products that deliver the technical requirements and either integrate or reinforce the character of a city with a 5G network. “At K 2019, we will be showing a series of technical and design prototypes for small cells in the frequency range of 3.5 GHz and 28 GHz,” says Grote.

When 5G technology progresses to higher frequency, e.g. the millimeter wave band, signal transmittance could become a design challenge. “We can help our customers to enjoy more design freedom while ensuring the 5G data transmittance performance with state-of-art testing capabilities in a broad frequency range of up to 50 GHz under a variety of environmental conditions, all in our Asia Pacific Innovation Center in Shanghai,” says Nan Hu, Global Head of Electronics at the Polycarbonates Segment of ����AV.

New film solution for 5G smartphones

5G technology, with its high transfer rates, will also have a significant impact on smartphone design. The antennas for 5G technology require more space. That is just one reason why metal solutions used to date for the back of devices will in future be replaced by ceramics, glass or plastics.

A Makrofol® SR multilayer film solution with acrylic top layer combined with a new manufacturing process results in mobile phone back covers that look like glass but are not fragile. “The film laminate can be formed in three dimensions, and the film solution also meets the requirements for transmission at high radio frequencies with wavelengths in the millimeter range,” explains Echol Zhao, Head of Specialty Films Greater China at ����AV.

This crystal clear, 3D formable and 5G compatible film material is specifically engineered for optimal design freedom for mobile phone brands to create fashionable mobile phones using decoration technologies such as UV patterning and non-conductive vacuum metallization (NCVM). More than 50 percent of the mobile phone market in China is currently switching to such multi-layer PC/PMMA film solutions – a sign of a promising future for the coming 5G era.

About ����AV:

With 2018 sales of EUR 14.6 billion, ����AV 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. ����AV has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.

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Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by ����AV. 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 ����AV’s public reports. These reports are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to make them conform to future events or developments.

Customers can filter by product characteristics or application areas and compare products side by side, as well as application examples. This helps innovation managers, designers, developers and purchasers to find what they are looking for even faster. They obtain new insights and discover inspiring content.

Unified appearance – all product information in one place

The new website is strictly focused on the needs of the customers and supports them in all phases – from the initial idea to ordering the product. In the ����AV Solution Center, customers can see all product features and examples of applications, download data sheets, compare products, make service requests, inquire samples, find the right contact persons and contact ����AV directly.

The journey continues

“Our vision is to create a modern and seamless experience across all digital interfaces,” says Karsten Malsch, Program Manager of Digital Customer Journey at ����AV. “The Solution Center is our main anchor. Now it's time to get the customers on our website.” This is supported by the use of social media channels. Just recently, ����AV in China started a selective approach via WeChat – other regions and channels will follow. The journey continues.

About ����AV

With 2018 sales of EUR 14.6 billion, ����AV 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. ����AV has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.

Find more information at www.covestro.com.
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Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by ����AV. 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 ����AV’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.

“It’s obvious that China is on its way to become a leader in innovation for many important industry trends,” says Dr. Markus Steilemann, CEO of ����AV. “This we want to support: As a global company, we are committed to innovate in China for the Chinese market as well as for the Asia Pacific region. I’m thrilled to see that our local innovation team is taking over more and more the global responsibility for core technologies. It’s the spirit of open innovation and open venturing with leading Tongji University, that helps us push the boundaries for the industry together with our partners.”

Prof. Dr. Wu Guangming, Vice President of Tongji University adds, “The Innovation Academy has set a good example to the industry-academia collaboration. With ����AV’s substantial support, the Academy has made significant achievements in the past eight years. I firmly believe, with the strengthened alliance, the Academy can help accelerate the industrialization of innovation results by further promoting business model innovation to the industry.”

The ����AV-Tongji Innovation Academy was inaugurated in 2011. “The academy is intensifying the collaboration in the field of market driven innovation, sustainability and commercialization,” emphasized Dr. Michael Schmidt, dean of the Academy and Head of Innovation for the Asian-Pacific region at ����AV. “Although we have a strong history of innovation, we cannot rest on our laurels. The academy gives us inspiration on how we can leverage speed, new technologies and new business models to further enable sustainability for the country and beyond.”

The ����AV-Tongji Innovation Academy also offers funding of business model incubation for students of Tongji participating in an annual business plan competition. This is to further develop applications and commercialize students’ projects, as well as to establish their own start-ups.

About ����AV-Tongji Innovation Academy:

The ����AV-Tongji Academy was established in 2011 and started as “an academy focusing on Eco-construction & material science”. With many years of strong and deep cooperation, The Academy has achieved fruitful results in education, innovation and talent development. In 2017, it was renamed into ����AV-Tongji Innovation Academy formally. Based on the foundation of the first successful five-year partnership, the Innovation Academy expands collaboration and aims to explore and promote innovative industry-academia cooperation models with a view towards industrialization of innovation outcomes in the area of mobility and construction, as well as provides education and talent development programs in related fields.

About ����AV:

With 2018 sales of EUR 14.6 billion, ����AV 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. ����AV has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.

Find more information at www.covestro.com.
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Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by ����AV. 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 ����AV’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.

“Nowadays, customers expect to have flexible ways to obtain the widest possible range of products and supplementary services through different channels,” explains Dr. Markus Steilemann, CEO of ����AV. “With our new Direct Store, we are adapting the buying experience to the changed requirements and are offering new methods in addition to our existing digital and analog sales channels.”

Simple, flexible and secure buying

The ����AV Direct Store has been designed over the past one-and-a-half years reflecting the demands of customers around the globe. It will offer around 80 products for manufacturing high-performance plastics and is intended to make buying chemicals more customer-friendly and efficient. Customers will receive regular personalized offers at clear real-time conditions and will be able to purchase and review all relevant information.

In turn, ����AV’s sales staff benefit from an additional, personalized digital doorway to their customers. ����AV sellers will present their company’s products directly under the ����AV brand and will be able to respond to the different needs of their customers. “Purchasing products in the chemical industry can be a long process and we’ve built the ����AV Direct Store to address this challenge. By using this digital sales channel, ����AV sellers and buyers don’t need to worry about the negotiation part of the conversation as this is all done within the platform. Instead, they can make better use of personal interaction and build a sustainable business connection. Ultimately, customers and sellers benefit equally,” says Thorsten Lampe, Managing Director of the B2B trading platform Asellion, on which the ����AV Direct Store is hosted.

Scalable software solution for third party providers

Currently, the ����AV Direct Store is the only supplier store on the Asellion platform. Only ����AV sellers and their customers have access to the ����AV Direct Store. However, the platform technology of Asellion is designed as a scalable and secure software-as-a-service(SaaS) solution, so that in the future third party providers and other manufacturers will, as far as possible, have the option to host their own direct store powered by Asellion. After a test and development phase, the platform is expected to open for external providers during the course of this year.

Asellion is a wholly owned subsidiary of ����AV based in Amsterdam and is part of the group-wide digital strategy “Digital@����AV.” With the comprehensive program, the materials manufacturer wants to digitalize the operational business and customer communication and develop new, digital business models.

If you are interested in further information on the new ����AV Direct Store: Please find this and the online.

About ����AV:

With 2018 sales of EUR 14.6 billion, ����AV 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. ����AV has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018.

Find more information at www.covestro.com.
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Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by ����AV. 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 ����AV’s public reports. These reports are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to make them conform to future events or developments.

The laboratory will develop digital solutions for using polyurethanes in appliance production – in line with ����AV’s digitalization strategy. The objective is to set a new benchmark for digitalizing the chemical industry.

Best insulation with polyurethane

All over the world, polyurethane rigid foam is the material of choice for efficient refrigerator insulation. To insulate a refrigerator, a precisely dosed amount of polyurethane raw materials is injected into the outer cavity and fills it up completely during foam formation. Both this material and the related foaming process are crucial for the refrigerator industry.

Fully-automated, smart production depends primarily on a precise characterization of the polyurethane components – a complex task. With the development of digital solutions, ����AV hopes to open up new avenues for helping household appliance manufacturers overcome these challenges.

Process optimization through digitalization

In the new Haier – ����AV Digitalization Joint Laboratory, both partners want to develop innovative solutions for data collection and analysis, monitoring foam quality and process workflows and continuously optimizing processes. These innovative measures will continuously improve the polyurethane foaming and manufacturing process, improve foam quality and reduce manufacturing costs. This will open up new opportunities for the domestic appliance industry in an increasingly digitalized world.

“With this collaboration, ����AV benefits from its comprehensive experience with polyurethane and foam technologies, while Haier brings in its expertise in industrial automation and the analysis of large volumes of data,” explains Dr. Ulrich Liman, global head of research and development in the Polyurethanes segment at ����AV. “This combination is bringing forth a new era of digital transformation in the chemical industry.”

Pioneers of intelligent production

Launched by Haier, COSMOPlat is the first industrial internet platform in the world to let users participate in the whole process. It can realize the transformation from mass manufacturing to mass customization, reshaping the industrial value chain and eco-chain, and further empower enterprises, users and suppliers to build a new manufacturing eco-system that can realize win-win cooperation.

Haier itself explains COSMOPlat “as an open multilateral interactive co-creation and sharing eco-platform. Our COSMOPlat user experience based mass customization model can be copied across industries, fields, and cultures. It is an industrial internet platform with global universalities. Our cooperation with ����AV will undoubtedly inject a key innovative force in chemical digitalization into Haier's path towards intelligent manufacturing.”

Mass customization solutions

In recent years, various industries in China have driven the digital transformation. For the traditional chemical industry, this also has an impact on the development of upstream and downstream value chains. ����AV and Haier want to enter into a long-term, mutually beneficial partnership, by continuously developing innovative digital solutions. Empowered by COSMOPlat, digital solutions can also be applied to the development of customized solutions for diversified polyurethane applications so as to achieve mass customization.

Dr. Michael Schmidt, head of Innovation Asia Pacific at ����AV, leading the R&D team, and John Dou, Vice president of Commercial Operation China, Polyurethanes segment at ����AV, leading the sales team, expect that this innovative cooperation model will further increase synergies between the two companies.

As an important initiative of ����AV's global digital strategy, the lab will focus on developing digital solutions related to polyurethane materials to push forward smart manufacturing in domestic appliance and mass customization in the chemical industry.

About ����AV:

With 2017 sales of EUR 14.1 billion, ����AV 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. ����AV has 30 production sites worldwide and employs approximately 16,200 people (calculated as full-time equivalents) at the end of 2017.

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Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by ����AV. 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 ����AV’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.

In order to realize the business idea, the winners are now released from their jobs for one year and can work within the group like company founders. To do so, they will receive up to one million euros in support. With the program, ����AV aims to promote creativity and entrepreneurial thinking among its nearly 16,000 employees.

The team consisting of members from different business divisions prevailed in the final against five other teams who have been preparing themselves intensively for the competition over the past four months. At the start of the Start-Up Challenge, around 600 projects were submitted worldwide. Ideas for more sustainability and new digital business models were predominantly focused on.

Employees think like entrepreneurs

“We were overwhelmed by the great innovative power of the ideas and the distinctive entrepreneurial thinking of the applicants,” says Dr. Markus Steilemann, who is responsible for innovation, marketing and sales on the ����AV board.

“With the Start-Up Challenge we reinforce our claim that innovation goes beyond traditional research and development. Because every single employee in every department can develop something new.” At the same time, the competition and the reinforcement of entrepreneurial thinking and actions in the Group help to test innovative ideas much more quickly on the market. Steilemann emphasized: “This also benefits our customers.”

The Start-Up Challenge goes beyond other company-internal innovation competitions because it gives employees the opportunity to develop innovative ideas into viable business models and demonstrate their own skills as founders. Steilemann announced that “we will continue to pursue many of the projects now”. “Because the innovative ideas help us to push the boundaries of what is possible together, in order to pursue our vision of making the world a brighter place to live.”

About ����AV:

With 2017 sales of EUR 14.1 billion, ����AV 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. ����AV has 30 production sites worldwide and employs approximately 16,200 people (calculated as full-time equivalents) at the end of 2017.

Find more information at www.covestro.com.
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Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by ����AV. 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 ����AV’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.

The most technically challenging step in this process is bonding the outsole to the shoe upper. ����AV developed an efficient solution for this within a very short time. It is based on polyurethane raw materials for adhesives, which are applied to the outsole or upper by means of digital printing.

Digital printing of adhesives

For the application, ATOM Lab used a variation of the melt layer method (Fused Filament Fabrication, FFF, or Fused Deposition Modeling, FDM). This method uses strands of melt-processable adhesives – so-called filaments – which are melted. The molten adhesive is applied according to a digital print layout. The sole and upper are then joined under pressure. This creates a solid, permanent adhesive bond.

This application using adhesive filaments is quick and efficient. Furthermore, it is very precise and reproducible, and it is also well suited for absorbent substrates. Due to the use of solid filaments, for example, the subsequent drying process may be dispensed. The adhesive features a high initial strength. Since application takes place from the melt, the adhesive is already activated. If the open time is sufficiently long, the fabricator can dispense with prior heat activation. Thus, two process steps can be saved in total.

Broad experience in additive manufacturing

����AV benefited from its experience in additive manufacturing with the technology and material solution developed on short notice. The company is involved in conventional printing methods and is currently developing a wide range of materials. Among these are filaments and raw materials for the FFF method, which so far has been used primarily in rapid prototyping.

Polyurethane adhesives have proven to be successful in shoe manufacturing. They are easy to process and result in flexible yet strong and durable adhesive joints with high impact resistance. ����AV offers a comprehensive range of raw materials for one- and two-component adhesives that are often developed in close collaboration with formulators.

About ����AV:

With 2016 sales of EUR 11.9 billion, ����AV 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, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. ����AV has 30 production sites worldwide and employs approximately 15,600 people (calculated as full-time equivalents) at the end of 2016.

For more information please see www.covestro.com.

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Forward-looking statements

This news release may contain forward-looking statements based on current assumptions and forecasts made by ����AV. 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 ����AV’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.