Evonik Degussa Invests $371 Million in Shanghai Chemical Industry Park Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--Evonik Degussa has begun construction on its integrated production plant for the manufacture of methyl methacrylates (MMA) and methacrylate specialties in the Shanghai Chemical Industry Park (SCIP). According to Klaus Engel, a member of Evonik Industries' management board and the head of the group's chemical business, the plant constitutes an important component of the group's global growth strategy. This integrated production facility is built on Evonik Degussa's multi-user site in the SCIP.

Evonik Degussa has invested $371 million in the plant, making it the second-largest investment that the company's Chemicals Business Area has ever made. This world-scale plant is expected to start operation in mid-2009. The facility will be able to produce 100,000 metric tons of MMA as well as some methacrylic acid, butyl methacrylate and PMMA molding compounds. The plant will be able to provide a range of products in optoelectronics, the paint and adhesives industry, and in automobile manufacture.

Evonik Industries has been operating a polyester plant and a colorants plant in the SCIP since June 2006. Evonik Industries has also invested in a polycondensation plant for special polymers and a compounding plant, which are expected to come on stream next year. A new production plant for thermoplastic methacrylate resins is also scheduled to start operation in the second half of 2009. According to Engel, the thermoplastic methacrylate resins market in China has the greatest growth potential in the world. Further expansions of this multi-user site in the SCIP are expected in the near future.

The former Degussa was merged into Evonik Industries in September and renamed Evonik Degussa, becoming a chemical subsidiary of Evonik Industries. The Evonik Group has been producing specialty chemicals products there since the 1990s. Now, it has nearly 20 companies and plants in 10 cities. According to statistics from the 2006 fiscal year, the group has 4,000 employees in China, and its sales volume in China stands at $682 million, registering a 60% year-over-year increase compared with 2005. The sales volume of Evonik's business in China is expected to hit $1.3 billion in 2009.

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