Evonik to build new plant in Asia, rushes to restart resin production in Germany

Article by Christian A., on April 19, 2012

Amid the shortage of the nylon 12 materials used to make plastic auto parts, Evonik Industries AG announced that a resins plant will soon be built in Asia. Nylon 12 is used for fuel tanks, brake components and seat fabrics. However, this will be completed only after several years so this doesn’t resolve the current dilemma faced by automakers and suppliers.

Its executives are working hard to lessen the impact of a March 31 explosion at its resins plant in Marl, Germany, and to resume production right away. Gregor Hetzke, head of the company's performance polymers unit, said that there’s “quite a lot of damage" at the plant.

He said that it will likely take three to six months for the plant to reopen. The closure of this plant is expected to result to production interruptions for several automakers. Dahai Yu, a member of the executive board of Evonik, said that a location will be decided soon and that the plant is slated to open in 2014. Evonik reported a record-breaking 14.5 billion euros ($18.9 billion) in global sales for 2011.

About 3.1 billion euros ($4 billion) is from the company's plastics business while Asia accounted for 20% of its overall sales. Evonik hopes to expand in Asia, with a target of attaining 4 billion euros ($5.23 billion) in sales in the region by 2015, raising Asia's share to 30% of global sales. Yu seeks to double sales in Asia. Yu also said that a strategy project was concluded recently.

If you liked the article, share on:

Comments

Recommended

The aftermath of the Takata airbag recall still largely resounds in the automotive industry, as big automotive companies like BMW, Mazda, Subaru and Toyota were extensively hit with what is...
by - May 22, 2017
Amid reports that major rival Volkswagen would cease producing 2016 and 2017 model year diesel cars following the wake of the "Dieselgate" scandal, it’s believed that Chevrolet sees its opportunity...
by - May 22, 2017
Honda recently whips out a new feature for the S660 Bruno Leather Edition. Any guesses? Well, it’s going to be an iPhone app that goes by the name Rev Beat....
by - May 22, 2017
And so it goes, Ford is not at all closing its doors to an all-electric F-150 pickup. The American manufacturer initially laid out its plans for an F-150 hybrid earlier...
by - May 22, 2017
As it is now, Nissan Motor’s Nismo road car operations is a relatively a small business, with an annual volume of 15,000 performance-oriented cars. However, Nissan is giving Nismo fans...
by - May 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries