Evonik has started up a new plant for organically modified specialty silicones at Shanghai, China, strengthening its business with the products used in applications such as polyurethanes as well as paints and coatings and a variety of industrial applications.

Speaking at the plant’s inauguration, CEO Christian Kullmann, said it is another important cornerstone in Evonik’s strategy to “focus on businesses with a clear orientation toward specialty chemicals and on powerful innovations to significantly increase the value of the company.”

Organically modified specialty silicones, part of the Essen-based group’s specialty additives business, are one of four growth engines for which it sees above-average earnings potential. The Chinese facility will meet rising demand for specialty silicones in China and neighboring countries and at the same time consolidate Evonik’s position as the global market and technology leader for organically modified specialty silicones, Kullmann said.

The new production facility, which cost a “high two-digit million” euro figure, has simplified supply chain, the chemical producer said. By producing specialty silicones locally, it will no longer have to ship to Asia from Europe or North America and can thus react faster to requests, said Claus Rettig, head ofthe group’s Resource Efficiency segment.

Evonik has been active in China for more than decades. With the takeover of the specialty additives business of Air Products at the beginning of 2017 and the opening of new plants in Nanjing, it recently has significantly expanded its business in the region.