Evonik’s new methylate plant to strengthen alkoxides business

Evonik is currently working on the construction of a new plant for the production of methylate in Southeast Asia. The basic engineering phase will be completed in 2022. This will further strengthen Evonik’s global alkoxides business. Alkoxides are predominantly needed as catalyst for the biodiesel production as well as in synthesis applications in the pharmaceutical and agricultural industries. The size of the investment is in the mid double-digit million range.

The investment is seen as a necessary next step in the strategy to expand the position as one of the world’s largest manufacturers of alkoxides.

“We already have production facilities in Europe, North and South America; Asia is the missing piece in a global supply network to regionally serve all relevant markets.” says Alexander Weber, global head of Marketing & Sales for the business line Functional Solutions.

Southeast Asian plant will be a modern world-scale facility

The new capacity will be a modern world-scale facility. It will satisfy the growing demand for alkoxides in this dynamic region. 

“We want to meet our customers’ needs in the long term, and this is also reflected in the planned production volume with which we can serve the Asian market,” Weber said.

The project is entering the basic-engineering phase following the completion of several feasibility studies, which will be closed in 2022. In this phase, the basic requirements for the plant are incorporated into preliminary construction plans and details on production and investment volumes developed further.

Evonik is currently producing alkoxides at three other locations globally: Rosario, Argentina; Mobile, Alabama, U.S.A., and Lülsdorf, Germany. Due to regulatory reasons, the German alcoholate site needs to be shut down by the end of 2027. Evonik is planning to secure the supply into the European markets after 2027 with a follow-up investment.