Covestro buys 260-acre Robinson property as Bayer spinoff strengthens commitment to Pittsburgh

Covestro, a Bayer spinoff, has inked a deal to buy the nearly 260-acre property it’s been operating out of in Robinson, officials said Wednesday.

The Germany-based plastics manufacturer, formerly known as Bayer MaterialScience, employs about 750 people in Robinson. Covestro officials said the purchase of the property signifies its commitment to keeping its North American headquarters in the Pittsburgh region as its financial position strengthens globally.

“We all our very excited about the fact that we now have a permanent stake in the ground that will keep us here for years to come,” Covestro spokesman Bob Walker said by phone Wednesday afternoon.

The property is presently owned by Bayer and leased to Covestro.

Company officials would not disclose the sale price for the Robinson campus, which includes 14 buildings. They’re all occupied by Covestro employees working in technology and research roles as well as administration, sales and marketing.

“The leadership’s long-term commitment to Pittsburgh is great for its employees and also signals future growth for the corporation,” Allegheny County Executive Rich Fitzgerald said in a statement. “We are excited that the company will remain an integral part of our region’s business economy.”

Covestro is a dominant player in the polyurethane and polycarbonate markets.

It manufactures high-tech materials used in everything from cars, furniture and electronics to chemicals, makeup and health care tools. It touts a strong focus on expanding the availability of renewable energy and seeking out innovative solutions that minimize harm to the environment.

Covestro’s lease with Bayer will end and the sale will take effect on Dec. 31, 2020.

Pennsylvania House Speaker Mike Turzai called the deal “a big win for Allegheny County.”

“We are proud Covestro recognizes the tremendous assets the commonwealth has to offer and are enthusiastic about its plans to deepen its roots here,” Turzai said in a statement.

The real estate deal, itself, isn’t associated with bringing new jobs to Western Pennsylvania, though Covestro is hiring, Walker said.

“Not only does Pittsburgh share our passion for innovation and sustainability, but this region also offers a number of strategic advantages to help grow our business: access to world-class talent, a thriving innovation community and a strong customer base,” Covestro President Haakan Jonsson said in a statement.

The company was spun off by Bayer in an initial public offering in October 2015 and has been growing steadily since.

“When we carved out of Bayer in 2015, we knew we wanted to stay here,” Walker said. “We’ve always known that Pittsburgh is optimal for our headquarters. We have our labs here, and we have significant investments here in technology.”

Robinson is one of Covestro’s three global technology centers.

The other two are in Shanghai and the German city of Leverkusen, where Covestro’s primary headquarters is based.

Another benefit to the Robinson campus along the Parkway West is its close proximity to Pittsburgh International Airport, as many employees travel internationally, Walker said.

Worldwide, Covestro employs more than 16,800 across 30 production sites.

The company’s stock share price has climbed by more than 20% in recent months, Simply Wall Street reports.

“The performance has been to the point where our global operations, they want to make major investments right now,” Walker said.

Also on Wednesday, Covestro announced inking the largest power purchase agreement for offshore wind energy in the German North Sea, Energy Live News reports.