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05. October 2017

Evonik opens plant for speciality silicones in Shanghai

Evonik has started up a new plant in Shanghai, China, for the production of a wide range of organically modified speciality silicones. The products, which are manufactured in batch processes, are used in, e.g., polyurethane, paints, and coatings applications as well as in a variety of industrial applications. Evonik invested a high two-digit million euro sum in the construction of the new production facilities, which have simplified the company's supply chain.

Organically modified speciality silicones form part of speciality additives – this is one of four growth engines in which the company sees above-average potential for growth and margins. Christian Kullmann, Chairman of the Executive Board of Evonik, said: “Demand for speciality silicones has grown strongly over the past few years. China and its neighbouring 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’ll be consolidating our position as the global market and technology leader for organically modified speciality silicones.”

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

“Because we now produce many speciality 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,” said Claus Rettig, Chairman of the Management Board of the Resource Efficiency Segment.

The new plant is part of a global integrated production system that is the backbone for the manufacture of about 3,000 different products. Organically modified speciality silicones are used in many applications, serving for example as plastic additives for comfortable upholstered furniture, car seats, and ergonomic mattresses. They also play an important role in the formulation of insulation material for buildings and ensure energy efficiency in cooling devices. Yet another application area is antifoams, used in the building, textile, and plastics industries. speciality silicones are also essential ingredients of many paints and coatings other special fields of application.


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