Evonik invests Euro 1 bn for large-scale production facilities in 2014

Germany-based Evonik Industries will start up new facilities and production capacities, representing an investment worth about Euro 1 billion, in high-growth emerging markets in 2014. “By the end of the coming year, we will have implemented over Euro 3 billion of the total Euro 6 billion investments that are planned from 2012 to 2016. This will make a contribution to our future economic success,” said Klaus Engel, Chairman of the Executive Board, Evonik.
 
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 Euro 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 1,50,000 metric tonnes. Evonik is also currently ramping up its global annual capacities of the feed amino acid Biolys (source of L-lysine) to almost 5,00,000 metric tonnes by 2015.
 
In China, Evonik will start up new production facilities for isophorone and isophorone diamine in Shanghai in 2014. These so-called cross-linkers 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 Euro 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 approximate 50,000 metric tonnes per year. The company started up a similar plant in China in 2013.
 
In Germany, a new facility for the production of functionalised 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 Euro 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 Euro 18 billion and adjusted EBITDA of over Euro 3 billion in 2018.