Company to implement over €3 billion of its investment program by the end of 2014
Large-scale facilities to become operational in Singapore, China, Brazil, and Germany next year
"This will make a contribution to our future economic success."– Klaus Engel, Chairman of the Executive Board
Essen. Evonik Industries, one of the world’s leading specialty chemicals companies, is to start up new facilities and production capacities, representing an investment volume of close to
€1 billion, in high-growth emerging markets in 2014. "By the end of the coming year, we will have implemented over €3 billion of the total six-billion-Euro investments that are planned from 2012 to 2016. This will make a contribution to our future economic success," says Klaus Engel, Chairman of the Executive Board.
Four large-scale production facilities, among others, will become operational in 2014: Evonik is completing a world-scale plant for the production of the amino acid MetAMINO® (DL-methionine) for animal feed in Singapore. The specialty chemicals company invested over €500 million in the construction of the new facility, which is scheduled to start producing in the third quarter of 2014 with an annual capacity of 150,000 metric tons. Evonik is also currently ramping up its global annual capacities of the feed amino acid Biolys® (source of L-lysine) to almost 500,000 metric tons by 2015.
In China, Evonik will start up new production facilities for isophorone and isophorone diamine in Shanghai in 2014. These so-called crosslinkers are essential components for the production of industrial floors, synthetic leather, and coatings and paints. They are also used in chemical synthesis and in the growth area of high-performance composite materials, which are used, among other applications, for wind power facilities. The total investment volume is over €100 million.
Evonik is also expanding its global production network with construction in Brazil, where a new plant for the production of substances used in the cosmetics and household consumer goods market will open in 2014. Evonik’s investment in the mid double-digit million-Euro range will create a production capacity of approx. 50,000 metric tons per year. The company started up a similar plant in China in 2013.
In Germany, a new facility for the production of functionalized polybutadienes is projected to open in the spring of 2014. The investment volume is in the mid double-digit million-Euro range. Evonik distributes functionalized polybutadiene under the name POLYVEST® HT. The material is mainly used for sealing compounds in double-glazed windows and for adhesives, for example in the automotive and electronics industry.
Evonik's investment and growth program will comprise over €6 billion in the period from 2012 to 2016. Two thirds are slated for growth investments, while another third will be spent on existing facilities. Evonik aims to achieve sales of around €18 billion and adjusted EBITDA of over €3 billion in 2018.
Evonik, the creative industrial group from Germany, is one of the world leaders
in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms.
Evonik is active in over 100 countries around the world. In fiscal 2012 more than 33,000 employees generated sales of around €13.4 billion and an operating profit (adjusted EBITDA) of about €2.4 billion (excluding Real Estate in both cases).
In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.