Evonik opens new plant in Shanghai

German specialty chemicals company Evonik Industries AG opened a new facility in Shanghai on Tuesday, producing ingredients used in the cosmetics and household consumer goods market, with the aim of meeting booming demand in Asia.

The new facility, which is located in the Shanghai Chemical Industry Park, has an annual production capacity of around 80,000 metric tons.

The investment volume was somewhere in the range of 50 to 100 million euros, according to the company.

"With this investment, we are sustainably expanding our business in Asia. The new plant in Shanghai not only plays a key role in further consolidating our position in the Chinese market, but is also an important element of our strategy for the growth markets of the entire region," said Klaus Engel, chairman of the executive board of Evonik Industries at the opening ceremony.

The market for laundry care products in Asia is driven by consumer desire for a more comfortable and convenient lifestyle. The Chinese cosmetics market has been growing in double digits and is expected to continue growing at around this rate.

Evonik already operates a similar plant in Bekasi, Indonesia, mainly serving manufacturers in the personal and household care industries in Southeast Asia, Australia and New Zealand.

"Our production plant and our new R&D center in Shanghai allow us to respond quickly to regional requirements in the Asia-Pacific region," said Claus Rettig, head of the Consumer Specialties Business Unit with the company.