German specialty chemicals major Evonik Industries AG has completed a €52 million expansion of its silicone production platform at its Essen Goldschmidtstrasse site in Germany, strengthening manufacturing capabilities, improving supply chain resilience and creating additional opportunities to serve growing global markets for high-performance silicone additives. The investment involved the construction of a new production plant and a large tank farm, increasing the company's manufacturing capacity for organomodified silicones, an important product group within its international silicone network.
The expansion is expected to improve operational efficiency, reduce potential supply bottlenecks and strengthen Evonik's ability to meet customer requirements across several end-use industries. Organomodified silicones are specialised additives used in a wide range of industrial and consumer applications. These include polyurethane (PU) foams for building insulation, mattresses and automotive seating, as well as adhesives, industrial coatings and personal care products. Growing requirements for performance-enhancing additives across these sectors are increasing the importance of reliable production capacity and supply networks.
The investment assumes particular significance amid continuing volatility in global chemical supply chains, rising logistics costs and the need for manufacturers to maintain dependable supplies of specialised raw materials and intermediates. "This expansion strengthens our silicone production platform, enhancing supply chain resilience and creating a strong foundation for profitable growth. This latest investment highlights the important role that our innovative German sites play in the success of our global operations," said Lauren Kjeldsen, Evonik Management Board member responsible for the Custom Solutions segment, to which the business belongs.
Strengthening global production networkEssen Goldschmidtstrasse is a key manufacturing location within Evonik's international silicone production network. The facility maintains close operational links with other production sites in Geesthacht, Obernburg and Wittenburg in Germany, Pandino in Italy, Shanghai in China and Hopewell, Virginia, in the United States. The latest investment is designed to strengthen coordination across this network while improving the company's ability to supply customers in different geographical markets.
By expanding local production and storage capabilities, Evonik aims to reduce the need to transport intermediates and finished products between international facilities. This is expected to ease pressure on the company's logistics infrastructure, reduce dependence on short-notice deliveries and improve production continuity, particularly when individual manufacturing locations face operational constraints.
"The investment in Essen strengthens our global production network and further enhances our ability to serve customers reliably around the world. It significantly expands our production capabilities, reduces potential bottlenecks and creates opportunities for future growth in attractive markets," said Roberto VilaKeller, head of the responsible Business Line Interface & Polyurethane Additives.
Operational efficiencyA major component of the expansion is the development of an integrated logistics and storage infrastructure at the Essen facility. A new 150-metre-long pipe bridge connects four production units and 15 manufacturing assets directly to the new tank farm, enabling more efficient movement and handling of materials within the site. The tank farm comprises five stainless-steel storage tanks, with the tallest measuring 24 metres, providing substantial storage capacity for key raw materials. The additional storage infrastructure is expected to improve the availability of essential inputs, stabilise manufacturing processes and reduce the facility's dependence on frequent deliveries.
The expansion has also increased the overall area of the Essen Goldschmidtstrasse site from 32 to 35 hectares. The integrated infrastructure is particularly important for specialised chemical manufacturing, where uninterrupted availability of raw materials, efficient material handling and consistent production conditions are essential to maintaining product quality and meeting customer delivery schedules. The project was completed while the facility remained fully operational, despite space constraints at the industrial site. Around 80 Evonik employees and more than 230 contractors from 25 partner companies contributed to the successful execution of the project.
Commenting on the investment, Thomas Kufen, Mayor of Essen, said, “Industrial investments of this scale send a strong signal for the city's economy and the wider region at a time when industrial investment is becoming increasingly important. Such projects secure high-quality employment, strengthen industrial competitiveness and demonstrate Essen's international attractiveness as an industrial hub.”
Strategic importanceThe expansion also reflects Evonik's broader strategy of strengthening specialised manufacturing capabilities at selected production locations rather than focusing exclusively on increasing conventional chemical production volumes. Under its recently developed long-term site strategy, the company has established specific development profiles for six major production locations: Essen Goldschmidtstrasse, Marl, Wesseling, Darmstadt/Weiterstadt, Rheinfelden and Hanau.
Within this framework, Essen Goldschmidtstrasse has been designated as a centre of excellence for customer-specific formulations. The additional silicone production and storage infrastructure supports this positioning by providing greater flexibility to develop and manufacture specialised products according to customer requirements. The increased availability of organomodified silicones could also have implications for specialty chemical markets in Asia, including India. Greater global production capacity for high-performance silicone additives could create opportunities for technology partnerships, improved product availability and potential import substitution in regional markets.
For India's expanding construction, automotive, coatings, adhesives and personal care industries, dependable access to specialised silicone additives remains important for improving product performance and supporting the development of higher-value formulations. The expansion therefore represents more than an increase in Evonik's manufacturing capacity. By integrating additional production assets with improved storage and logistics infrastructure, the company is seeking to strengthen the reliability of its global silicone supply network while positioning its German operations to support future growth in specialty chemicals markets.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
