Evonik New Production Facility and New Optimism  

Following an investment in the tens of millions, Evonik has opened its new silicone platform at its Essen Goldschmidtstraße site. Almost at the same time, the company provided insights into its current financial results—and the Executive Board emphasized the importance of autonomy. 

Evonik has invested 52 million euros in the expansion of its silicone platform at the Essen Goldschmidtstraße site. The funds were used to build a new production facility and a large tank farm. The facility increases production capacity for organomodified silicones, an important product group within Evonik’s international silicone production network. These custom-formulated additives are used, among other things, in polyurethane foams for insulation materials, mattresses, and car seats, as well as in adhesives, paints, coatings, and cosmetic products.

“With this expansion, we are strengthening our silicone platform, increasing the resilience of our supply chain, and enabling profitable growth,” says Lauren Kjeldsen, a member of Evonik’s Executive Board responsible for the Custom Solutions segment, to which the business belongs. The investment underscores the important role that innovative sites in Germany play in the success of our global production.

"Investment in Essen Strengthens Global Production Network"

As the central production site for the silicones platform, Essen’s Goldschmidtstraße forms a close-knit network with other German locations in Geesthacht, Obernburg, and Wittenburg; Pandino, Italy; Shanghai, China; and Hopewell, USA. “The investment in Essen strengthens our global production network. We are significantly expanding our production capacity, avoiding bottlenecks, and thereby tapping into additional market potential,” explains Roberto Vila-Keller, head of the Interface & Polyurethane Additives business line. 

The new facility reduces the burden on the international production network, as fewer intermediate and finished products need to be transported between locations. In addition, an optimized logistics infrastructure ensures more efficient production: A 150-meter-long pipe bridge now connects four plants and 15 production facilities to the new tank farm. Key raw materials can now be stored in large quantities in five stainless-steel tanks, the tallest of which measures 24 meters. 

This makes the processes more stable and less dependent on short-term deliveries. The tank farm has expanded the plant grounds from 32 to 35 hectares.

An Important Sign for Essen as an Industrial Hub

The expansion took place while operations continued and in a very confined space—a major undertaking for approximately 80 Evonik employees and more than 230 workers from 25 outside contractors. “Especially in challenging times, investments of this magnitude send an important signal to Essen’s economy and beyond,” says Essen’s Mayor Thomas Kufen. “They secure high-quality jobs, strengthen competitiveness, and demonstrate the international appeal of our industrial hub.”

The strategic importance of Essen Goldschmidtstraße is also reflected in the vision statements recently defined by Evonik. For each of its six major production sites in Germany (Essen Goldschmidtstraße, Marl, Wesseling, Darmstadt/Weiterstadt, Rheinfelden, and Hanau), the company has established a distinct profile that will serve as the basis for their further development in the coming years. The Essen site is positioning itself as a center of excellence for formulations—that is, customized chemical formulations.

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Quarterly Results: Evonik Increases Operating Profit

Evonik used the presentation of its new quarterly results to send a clear message to its competitor BASF regarding the latter’s interest in a takeover. “We remain fully focused on our strategic direction and our development as an independent company,” said interim CEO Claus Rettig on Tuesday during a conference call with analysts.

Adjusted operating profit rose 40 percent to 629 million euros in the third quarter, while revenue increased 13 percent to 3.8 billion euros. Evonik is also optimistic about the full year. The Group expects to achieve adjusted operating profit in the upper half of the range between 2 and 2.2 billion euros. Rettig emphasized: “We are strong and resilient.” 

Source: www.handelsblatt.de