Evonik Starts up Integrated MMA Production Facility in Shanghai   

By John Zheng    

On November 24th, 2009 Evonik Industries held a ceremony for the startup of its integrated methyl methacrylate (MMA) production facility in the Shanghai Chemical Industry Park (SCIP).
    The groundbreaking ceremony for the facility took place in September 2007, and the company celebrated the topping out of the facility on July 2nd, 2008. (CCR 2007 No.27, 2008 No.20)
    "We have fully completed this Euro 250 million project, which represents the second largest investment ever in the Chemicals Business Area. We are continuing to focus on what will be the largest and fastest growing market in the world. Evonik is the only company in this region to offer virtually all the specialty methacrylates from a single source," said Dr. Klaus Engel, chairman of the Executive Board of Evonik Industries AG.
    The world-scale complex has an annual capacity of about 100 000 tons of MMA and also includes production plants for methacrylic acid, butyl methacrylate, hydroxy esters, specialty monomers, polymethyl methacrylate (PMMA) molding compounds, and thermoplastic methacrylate resins. There will be 300 Evonik employees working at the site in Shanghai. Evonik now has integrated MMA production sites in the U.S., Europe, and China.
    The global market for MMA products is growing by about 5% annually. The main driver of this growth is the Asian market, where MMA derivatives are used mainly for LCD screens and in the construction and automotive industries. Investing in China strategically is the right way to go. Here, in the midst of the world's largest market, the new facility meets Evonik's claim of developing high-grade products in a customeroriented manner as well as producing for local markets.
    "With the MATCH (Methacrylates To China) project, we have implemented a unique integrated production concept with the optimization the use of production facilities, raw materials and technology leadership of Evonik and SCIP, which is in favor of environment protection and sustainable development," says Patrik Wohlhauser, Chairman of the Management Board of Evonik Degussa GmbH.
    Over the next few years, Evonik expects steady growth for methacrylates and PMMA molding compounds. Among the most important drivers here is the energy efficiency megatrend. "With our products we offer a number of solutions for the solar industry, for example, and for weight reduction in the automotive industry. Our materials are also increasingly finding application in construction and architecture, and in noise barriers," said Gregor Hetzke, head of Evonik's Performance Polymers Business Unit.
    Evonik Industries has been producing specialty chemical products in China since
the early 1990's, with wide-ranging trading relations already in place prior to this. The Group now has a total of 20 companies and 16 production sites in the region. In the fiscal year 2008, 4 000 employees generated sales of over Euro 820 million.
    Evonik regards China as one of the driving forces of the global economy, and intends to increase its business in Greater China to around Euro 2 billion in the medium team.