Evonik invests over €3bn in large-scale production facilities

ERJ staff report (TP)

Essen, Germany – Evonik Industries plans to invest over €3bn by the end of 2014 with large-scale facilities in Singapore, China, Brazil and Germany.

Four production facilities, among others, will become operational this year. The company will finish a “world-scale” plant for the production of the amino acid MetAMINO (DL-methionine) for animal feed in Singapore.

Over €500m was spent on construction of the new facility, which is scheduled to start producing in the third quarter of 2014 with an annual capacity of 150,000 tonnes. Evonik is also currently ramping up its global annual capacities of the feed amino acid Biolys (source of L-lysine) to almost 500,000 tonnes by 2015.

In China, Evonik will start up new production facilities for isophorone and isophorone diamine in Shanghai. These ‘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 €100m.

"By the end of the coming year, we will have implemented over €3bn of the total €6bn 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.

The firm 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. Investment is in the “mid double-digit million-Euro range” and will create a production capacity of approximately 50,000 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's investment and growth program will comprise over €6bn in the period from 2012 to 2016. Two-thirds are slated for growth investments, while another third will be spent on existing facilities. It aims to achieve sales of around €18bn and adjusted EBITDA of over €3bn in 2018.

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Press release from Evonik