Evonik opens new silicones plant in Shanghai

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Photo by Evonik Industries AG

Evonik Industries AG opened a new plant 5 Sept in Shanghai for production of a range of organically modified speciality silicones, according to a company release.

The products, manufactured in batch processes, can be used for polyurethane, paints and coatings applications, as well as industrial applications. Evonik invested a two-digit million-euro amount in constructing the new 32,000-sq.-ft. plant, which was completed in about one year.

Demand for speciality silicones has grown strongly during the last few years, and China and its neighbouring countries are key markets for many applications, said Christian Kullmann, chairman of the executive board of Evonik.

"Thanks to the new plant, we will now be able to support our customers in the Asia region with even more speed and flexibility," he said. "At the same time, we'll be consolidating our position as the global market and technology leader for organically modified speciality silicones."

The new plant simplifies Evonik's supply chain, removing the need to ship speciality silicones from Europe or North America to Asia, said Claus Rettig, chairman of the management board of the resource efficiency segment. It also extends the company's activities in Asia, after the takeover of the speciality additives business of Air Products at the beginning of 2017 and the opening of new plants in Nanjing.

Organically modified speciality silicones form part of speciality additives, and form one of four growth engines in which Evonik sees above-average potential for growth and margins, according to the release.

The new plant is part of a global integrated production system for the manufacture of about 3,000 different products.

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