Global chemicals giant Evonik strengthens commitment to China

Germany-based global specialty chemicals giant Evonik will showcase four globally premiered products, including two developed locally in China, at the 8th China International Import Expo that will open in Shanghai on Wednesday.

These serve as examples of local research and development achievements being exported globally, Xia Fuliang, president of the Greater China region at Evonik, said during a recent media interview in Shanghai.

One of the locally developed products is an oil stain remover, a new generation of ultra-efficient degreasing agent designed for kitchens plagued by heavy oil stains. The other is a polyurethane surfactant that helps home appliances meet new energy efficiency standards.

Evonik has strong confidence in the long-term growth of the Chinese market, focusing not only on sales growth but also on profit increase, said Xia.

For the 2024 fiscal year, Evonik's sales in China, a core growth engine of the global chemical industry, exceeded 1.4 billion euros ($1.62 billion), accounting for about 10 percent of its global sales. The company's target for 2032 is to achieve one-third of its global sales from the Asia-Pacific, with sales in China exceeding 2 billion euros, he said.

"Currently, sales in the United States and European markets are also increasing, so the Asian market needs to grow even faster to achieve this target. We are highly confident in the long-term growth prospects of the Chinese market," Xia said.

"In recent years, the company has continuously increased its investment in the Chinese market to seize the opportunities brought by China's economic upgrade and industrial transformation. This also helps us strengthen local innovation capabilities, improve production layouts, and serve the Asia-Pacific and global markets more efficiently," he continued.

Evonik has fulfilled business growth in the Chinese market over the past few years, said Xia. Despite challenges, such as US tariff policies and international geopolitical issues, as well as China's overcapacity and intense competition, the company has managed to realize single-digit growth in sales in China so far this year.

"Moreover, we are more focused on profit growth, with marginal gains in China slightly outpacing sales revenue growth," said Xia.

He said the company's goal in the Chinese market is to achieve sustainable business growth, not just a one-year increase followed by a drop. "For many years to come, we expect all our 14 business lines to achieve continuous, sustainable, and profitable growth," Xia said.

The company identified sectors, such as new energy vehicles, coatings, and personal care, as major sources of business growth in the Chinese market.

Xia highlighted that China's automotive production exceeded 31 million units last year, a figure unimaginable for any other country. With the shift from traditional vehicles to new energy vehicles, many of Evonik's products are applied in this sector, allowing the company to grow alongside the expansion of China's automotive market, he said.

Evonik has also been enhancing local production capabilities to meet market demands more quickly and drive growth in these years. In July, the company opened its largest medical device technology center in Shanghai, which provides one-stop solutions from concept discussion to production, serving the entire Asian market.

The new facility utilizes advanced processing technologies to develop and produce semi-finished components with customized properties, such as bioabsorbability, low friction coefficient, anti-thrombosis, and anti-bacterial adhesion. These components can be further processed by medical device manufacturers into end-use devices for clinical applications in orthopedics, cardiovascular, neurosurgery, medical aesthetics, ophthalmology, and dentistry, among others.

In early 2026, Evonik plans to expand its specialty amines plant in Nanjing city, Jiangsu province, to better serve the construction, automotive, and home sectors. Also at that time, the company scheduled to establish a new joint venture plant in Leshan city, Sichuan province, to better serve the solar, semiconductor, and food packaging industries.

"Evonik resonates with China's economic development, and is a deep participant and witness to the country's high-quality development," said Xia.