Expansions: Evonik breaks ground on specialty amine production in Nanjing; Trinseo sells PC tech license/equipment to India’s Deepak Nitrite

German chemicals firm Evonik says it has officially broken ground on its plant expansion for specialty amines in Nanjing, China, recently. This milestone underscores Evonik's commitment to the development of the polyurethane and epoxy curing agent markets. The expansion at the existing production site strengthens Evonik's presence in China, a vital region for the company’s global operations.

The expansion represents a strategic investment in the double-digit million euro range, allowing Evonik to enhance its amine portfolio by accessing cost-effective raw materials. By increasing production in China, Evonik strengthens its competitiveness and improves market efficiency, optimising its production network, it adds. This expansion supports future market growth and aligns with Evonik’s global amine strategy to further differentiate its product offerings.

"The groundbreaking of our new specialty amines plant is testament to Evonik's strategic focus on expanding our capabilities in Asia and our confidence in its potential. China’s role as a competitive production hub is pivotal for both our regional and global business strategies," said, Dr. Claudine Mollenkopf, Head of Evonik’s Specialty Additives division. "This investment not only strengthens our position in the polyurethane and epoxy markets, but also highlights our commitment to sustainable growth and innovation."

The Nanjing plant runs on green electricity and specialises in producing amine-based additives crucial for industries such as construction, automotive, and furnishings. These additives play a significant role as catalysts during polyurethane foam formation. Innovative catalysts also reduce odor and VOC emissions. In November 2023, Evonik signed a Letter of Intent with the Nanjing authorities to expand the plant with construction to be completed in 2026.

"The amine expansion project is key to our business, enabling us to continue serving our customers in the automotive, construction, furniture and consumer goods markets with high-performance amine-based additives,” said Roberto Vila-Keller, Head of the Comfort & Insulation business line. "By expanding our production capabilities in China, bolstering our other sites in Japan and Singapore, we are even better positioned to meet the increasing demand for sustainable polyurethane additives across the region."

In other news, speciality materials supplier Trinseo has announced it has entered into agreements to supply a polycarbonate (PC) technology license as well as all proprietary polycarbonate production equipment in Stade, Germany, to a wholly owned subsidiary of Deepak Nitrite Limited for use in India. Deepak, headquartered in Vadodara, Gujarat, India, is a multi-division and multi-product chemical intermediates company.

The total value of the combined agreements is US$52.5 million. The company expects to receive approximately US$9 million by the end of 2024 and an additional approximately US$21 million in the first half of 2025, subject to key milestones.

As part of the agreement, Deepak will acquire Trinseo's Caliber PC resins and trademark. Polycarbonate is widely used in automotive applications, including electric vehicles, as well as in electronics, construction, appliances, medical devices, and emerging sectors like aerospace and drones.

“While Trinseo recently announced its decision to exit virgin polycarbonate production, our polycarbonate technology is highly valued and the manufacturing equipment in Stade, Germany, can be utilised in India by Deepak,” said Frank Bozich, President/CEO of Trinseo.

“These are the initial steps of a strategic, collaborative partnership with Deepak, as we explore additional opportunities to leverage our technology portfolio and expand in higher-growth areas such as India,” he added.

With this disposition of the manufacturing assets in Stade, Germany, the company has decided to exit the site.

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