Evonik has unveiled plans to increase its production capacity for the high-performance polymer PA 12 by 50% up to early 2021, in response to rising demand from growth markets such as automotive industry, oil and gas and 3D printing.

The plans calls for construction of a new €400 million production facility at the Marl site in Germany’s Westphalia region. Evonik said the upgrade will also allow it to achieve its targeted margins on the polymer and generate an annual cash flow in the triple-digit range over the long term.  New plants for PA 12 precursors are also to be part of the expansion – the group’s largest capital spending project in Germany – which is expected to create about 150 new jobs.

CEO Christian Kullmann said the infrastructure at Marl allows optimal synergies as well as favorable conditions to sell specialty products on a global scale as the Essen-based group sharpens its focus on specialty chemicals

Kullmann sees the market for PA 12, which belongs to Evonik’s growth engine Smart Materials, as growing by more than 5% annually, thus “significantly outpacing” global GDP growth. In 3D printing, management foresees double-digit growth. Evonik is by far the leading player in PA 12 worldwide, ahead of European competitors Arkema (France), Ems (Switzerland) and Japan’s Ube.

Arkema is currently upgrading its own PA 12 production in response to strong demand in Asia. A 25% upgrade in China will go on stream by mid-2020, slightly behind the Evonik expansion. The French company is also expanding in bio-based PA 11.

Claus Rettig, CEO of offshoot Evonik Resource Efficiency, said the expansion at Marl will further strengthen the group’s competitive advantage and help secure long-term availability and reliability of supply in existing as well as future applications.

Evonik last expanded capacity in 2014 after a 2012 explosion at a plant for intermediate CDT at Marl severely crippled PA 12 deliveries for nine months.