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German chemicals firm has faith in fast-growing China

By Wan Zhihong (China Daily)
Updated: 2010-04-09 08:00

German industrial group Evonik opened a 2.5-billion-yuan chemicals facility in Shanghai in November 2009. The move is part of the company's strategy to focus on what will be the largest and fastest growing market in the world, Klaus Engel, chairman of the executive board of Evonik Industries AG, told China Daily in a recent interview.

The facility can produce 100,000 tons of methyl methacrylate (MMA) annually, the derivatives of which are used mainly for LCD screens, and in the construction and automotive industries. The facility is the company's second largest investment in the chemicals business.

Engel talked about the company's recent achievements in China and its environmental activities.

Q: What products does Evonik produce in China and what are their end uses?

German chemicals firm has faith in fast-growing China

In November 2009, Evonik completed one of the largest chemicals projects in its history: In Shanghai the Group finished work on a large scale complex for polymers, plastics intermediates, and coating systems and brought the quarter billion euro facility fully on-stream. The new facility supplies intermediates that are in great demand. These are used in the production of, for example, environmental friendly coatings, and lightweight fuel-saving plastic parts for vehicles.

Q: What impact did the economic downturn have on your business last year? What strategies have you taken in the face of this downturn?

To overcome the economic downturn, Evonik started an ambitious program to reduce costs and improve efficiency. It was introduced in order to make the Evonik Group more competitive and emerge even stronger from the crisis.

As for Evonik Greater China, along with the efficiency improvement program, we have also introduced a 7 C's strategic action plan - conserve cash, create new business opportunities, build stronger relationships with our customers, monitor competitors closely, improve our internal cross unit cooperation and external cooperation with partners, stick to our commitment to our employees, and further develop our company culture.

Q: What is your expectation for your business this year?

Sales for the first month of 2010 in the Greater China region are distinctively higher than the same period in 2009. It may be too early to forecast the performance of the entire year, but we hope the sales numbers to be a positive signal for 2010, just like the Chinese saying "Kai Men Hong" (a good start brings a good result).

Q: What green products and solutions have Evonik offered to the Chinese market recently, and how about the business performance of these products?

At Evonik, sustainable development is an integrated part of every aspect of our business processes and products. Take the automotive industry as an example. We have over 30 products which could be used for the industry and all of the products contribute to green technology, including additives in coating and fuels, catalyst for bio-diesel, high performance lithium-ion batteries, performance polymers in automotive parts, and innovative fillers for tires - all designed with the concept of sustainable development. With the use of Evonik's tire fillers, for instance, customers will see a dramatic improvement in fuel consumption.

In addition, Evonik provides high performance lithium-ion batteries with higher power but lower weight that paves the way for energy-saving and environmentally friendly electric vehicles. This unique patented technology from Evonik is at the core of our partnership with Daimler AG, which aims to mass-produce electric vehicles beginning in 2012.

Q: Besides offering green friendly products, what measures have you taken in your manufacturing process to make it more environmentally friendly? Can you give me some examples, especially in China?

Every year Evonik is investing a total of around 43 million Euros to protect the environment including water, land and air. In China, Evonik also launched energy-saving projects to provide solutions to automobile, construction, renewable and conventional energy.

Evonik is a member of the World Business Council for Sustainable Development and support Responsible Care, the global initiative of the International Council of Chemical Associations, which promotes sustainable use of resources. Evonik is also a member of econsense, German industry's sustainable development forum.

We are also among the first companies to organize a Public Open Day. On that day, we invite local government officials, community and employees' families to visit our facilities to enhance mutual understanding and promote the goals of Responsible Care.

(China Daily 04/09/2010 page20)