• New plant to serve Asian market
• Basic engineering phase to be completed in 2022
• Investment in the mid double-digit million range
Evonik is currently working on the construction of a new plant for the production of methylate in Southeast Asia. This will further strengthen Evonik’s global alkoxides business. Alkoxides are predominantly needed as catalyst for the biodiesel production as well as in synthesis applications in the pharmaceutical and agricultural industries. The size of the investment is in the mid double-digit million range.
The investment is seen as a necessary next step in the strategy to expand the position as one of the world’s largest manufacturers of alkoxides. “We already have production facilities in Europe, North and South America; Asia is the missing piece in a global supply network to regionally serve all relevant markets.” says Alexander Weber, Global Head of Marketing & Sales for the business line Functional Solutions.
The new capacity will be a modern world-scale facility. It will satisfy the growing demand for alkoxides in this very dynamic region. Weber: “We want to meet our customers’ needs in the long term, and this is also reflected in the planned production volume with which we can serve the Asian market.”
The project is entering the basic-engineering phase following the completion of several feasibility studies, which will be closed in 2022. In this phase, the basic requirements for the plant are incorporated into preliminary construction plans and details on production and investment volumes developed further.
Evonik is currently producing alkoxides at three other locations globally: Rosario, Argentina; Mobile, USA and Lülsdorf, Germany. Due to regulatory reasons, the German alcoholate site needs to be shut down by end of 2027. Evonik is planning to secure the supply into the European markets after 2027 with a follow-up investment.
Evonik is one of the world leaders in specialty chemicals. The company is active in more than 100 countries around the world and generated sales of €12.2 billion and an operating profit (adjusted EBITDA) of €1.91 billion in 2020. Evonik goes far beyond chemistry to create innovative, profitable and sustainable solutions for customers. About 33,000 employees work together for a common purpose: We want to improve life today and tomorrow.
About Performance Materials
The forever young classics of the Performance Materials Division stand for products and technologies that are continuously improved. They are the basis for many modern applications, for example in the areas of mobility, nutrition, pharmaceuticals or plastics. The divisions portfolio generated sales of €1.98 billion in 2020 with about 1,600 employees.
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.