SHANGHAI—Evonik Industries A.G. opened a new plant Sept. 5 in Shanghai for production of a range of organically modified specialty 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 more than $12 million constructing the new 32,000-sq.-ft. plant, which was completed in about one year.
Demand for specialty silicones has grown strongly during the last few years, and China and its neighboring 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 specialty silicones."
The new plant simplifies Evonik's supply chain, removing the need to ship specialty 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 specialty additives business of Air Products at the beginning of 2017 and the opening of new plants in Nanjing.
Organically modified specialty silicones form part of specialty 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.
Kullmann formally inaugurated the plant Sept. 5, with about 300 guests present.