SHANGHAI—Evonik is building an integrated production plant for organic specialty surfactants at its site in Shanghai. With an investment volume in the upper double-digit million range, the production network is scheduled to begin operation in mid-2013. The various specialty surfactants based on renewable raw materials will be used primarily for cosmetics and laundry care products.
"Construction of the integrated production plant based on renewable raw materials in Shanghai represents a key step in the further consolidation of Evonik's global presence. With the new plant, Evonik is supporting the growth of its key customers in Asia with local production," said Patrik Wohlhauser, chairman of the board of management of Evonik Degussa GmbH and member of the executive board of Evonik Industries responsible for the consumer, health and nutrition segment.
By building the plant, Evonik benefits from the infrastructure of the large Shanghai Chemical Industry Park (SCIP) and close proximity to its customers' production facilities. The integrated production network will feature state-of-the-art technology and meet correspondingly high environmental standards. Last fall, in its most recent project at SCIP, Evonik commissioned a plant for the production of plastics and plastics ingredients—a 250-million-Euro investment for the Group.
“We are already well-positioned in the market for cosmetic ingredients in Europe and the United States," said Claus Rettig, Ph.D., head of the consumer specialties business unit. “Now we are following our customers to Asia, with state-of-the-art technology and correspondingly high-quality ingredients. This allows us to supply our customers at the accustomed high level of quality."
China, the largest single market for cosmetics products in Asia, is expected to generate 25 percent of the absolute market growth in the intermediate term. The Chinese market for cosmetic ingredients, which is mainly driven by multi-national corporations, is growing by 10 percent annually. The main reason for this growth is the developing middle class in China, whose consumption patterns have changed in favor of higher quality products.