Evonik Industries broke ground to mark the official start of the construction for its multimillion-euro investment in Shanghai.

At the ceremony, Klaus Engel, chairman of the Evonik executive board, said, "This investment is in line with our priority to expand our business in the emerging markets."

The plant is expected to be operational in 2013. It will supply innovative ingredients and specialty surfactants based on renewable raw materials for the personal care, household care and industrial specialties industry. It will serve markets primarily in China and Asia Pacific, with an annual capacity of 80 kt.

The new production plant will be built at Evonik's multi-user site in Shanghai Chemical Industry Park, which is in the Yangtze River Delta Economic Zone.

Parallel to the construction of the new production plant, Evonik is expanding its R&D center at its Xinzhuang site in Shanghai, with an investment of €23 million.The expansion includes laboratories for research and development, application technology, and technical service, with aims to develop product applications and provide technology service for customers throughout China and Asia Pacific.