Speciality Chemicals Evonik Inaugurates New Plant in Shanghai

Author / Editor: Ahlam Rais / Wolfgang Ernhofer

The specialty chemicals group Evonik has established a new plant for the production of organically modified specialty silicones. The aim behind this move is to strengthen the company’s presence in one of the world’s most dynamic markets.

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Evonik’s new plant for specialty silicones in Shanghai.
Evonik’s new plant for specialty silicones in Shanghai.
(Source: Evonik)

Essen/Shanghai — Evonik has recently inaugurated a new plant in Shanghai, China, for production of a wide range of organically modified specialty silicones. The products, which are manufactured in batch processes, are used in, for example, polyurethane, paints, and coatings applications as well as in a variety of industrial applications.

Christian Kullmann, Chairman of the Executive Board of Evonik, formally inaugurated the plant in the presence of about 300 guests from the worlds of politics and business. On this occasion he said, “The plant is yet another important cornerstone in Evonik’s growth strategy. We are focusing on businesses with a clear orientation towards specialty chemicals and on powerful innovations to significantly increase the value of the company.”

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Organically modified specialty silicones form part of specialty additives. This is one of the four growth engines in which the Essen-based industrial group sees above-average potential for growth and margins. Kullmann adds, “Demand for specialty silicones has grown strongly over the past few years. China and its neighboring countries are key markets for many applications. Thanks to the new plant, we will now be able to support our customers in the Asia region with even more speed and flexibility. At the same time we will be consolidating our position as the global market and technology leader for organically modified specialty silicones.”

Evonik has been successfully operating in China for more than decades. With the takeover of the specialty additives business of Air Products at the beginning of 2017 and the opening of new plants in Nanjing, Evonik has once again significantly extended its activities in Asia.

“We are strengthening our presence in some of the world’s most dynamic markets with high growth rates. This gives us the opportunity to spot regional trends earlier and to develop innovative solutions in collaboration with our customers,” says Hans-Josef Ritzert, Managing Director of Evonik’s Nutrition & Care Segment.

The specialty chemicals group has invested a high two-digit million euro sum in the construction of the new production facilities. The new plant has simplified Evonik’s supply chain. “Because we now produce many specialty silicones locally, we no longer need to ship them from Europe or North America to Asia. This enables us to react faster to requests and increases our flexibility,” says Claus Rettig, Chairman of the Management Board of the Resource Efficiency Segment.