Business Strategy Evonik Expands Manufacturing Capacity in China
Evonik has expanded the manufacturing capacity of Tegosoft MM MB in China. The company’s Care Solutions organics plant, as a second site, will now be producing this product which will assist the firm to cater to the strong Asia Pacific market with ease.
Shanghai/China – By starting the manufacture of this valuable product at its Care Solutions organics plant in Shanghai, China, Evonik can better serve all global customers and improve its supply position. Increasing the manufacturing capacity for Tegosoft MM MB with a second site also enables Evonik to better cater to the increasing market demand for enzymatic-produced emollient esters in the Asia Pacific. This development underlines Evonik’s consistent commitment to enhance the availability of products according to RSPO (Roundtable on Sustainable Palm Oil) mass balance supply chain, a crucial step to the path of achieving its sustainability vision.
“Asia Pacific is a strong driving force for our personal care business growth. The increased global production network promotes supply chain agility and availability of low-carbon solutions which are of great importance to our customers within the region,” says Madeline Tan, regional business director in Asia North for Evonik’s Care Solutions business line. “We are looking to further support the local personal care industry with many products and technologies to help us reach our sustainability goals.”
Tegosoft MM MB, produced in Shanghai by enzymatic esterification based on 100 % renewable energy, maintains the same strict product quality and properties as that produced in Evonik’s site in Duisburg, Germany, for many years. This approach delivers a significant reduction of carbon footprint in cosmetic formulations, hence its environmental impact converges with the macrotrend in the beauty industry, where many cosmetic producers in Asia Pacific are pursuing a more ethical, environmentally friendly and sustainable portfolio with less CO2 emissions.
Enzymatic esterification is a prime example of green chemistry process to produce emollient esters. This eco-efficient biocatalytic synthesis, which runs on renewable energy, possesses an enormous advancement in waste prevention. Furthermore, it leads to an improved and positive impact on reducing global warming by nearly 100 % lower CO2 footprint compared to conventional chemical production procedures, as evaluated by standardized Life Cycle Assessment (LCA) on Myristyl Myristate.
As one of Evonik’s two manufacturing sites worldwide that manufacture enzymatic esters for cosmetic formulations, the Care Solutions organics plant located in Shanghai Chemical Industry Park (SCIP) has been fully reliant on renewable energy sources to support its operation since 2020.
The use of certified raw materials according to the rules set out by the RSPO Mass Balance Supply Chain Model highlights another sustainable attribute of Tegosoft MM MB. Compared to non-RSPO certified feedstock, it has an improved impact on global warming with a 68 % lower CO2 footprint, allowing local cosmetic brands to meet their ambition to use certified, sustainable palm oil-based products and reduce carbon in their value chain.