Evonik opens new production facility to produce ingredients for the cosmetic industries in Brazil

17-Oct-2014 - Brazil

Evonik Industries will start operations in a new plant to produce ingredients for customers in the cosmetic and consumer goods industries in Americana (São Paulo state, Brazil). This is another step in the specialty chemicals company's expansion of its market position in the dynamically growing Brazilian and South American markets. In the future, the plant will produce up to 50,000 metric tons of ingredients and intermediates for global and regional customers per annum. "With today's opening, we have reached a milestone on the journey towards our future success and the success of our customers, whose growth we can now support from our local production facilities," said Klaus Engel, Executive Board Chairman of Evonik Industries AG, during the opening ceremony attended by 200 guests.

The new production facility has high strategic importance for the South American business of Evonik's Consumer Specialties Business Unit, since about 80 percent of customers are located in the economically important state of São Paulo. Evonik supplies its customers with a broad range of ingredients and raw materials for producing cosmetics and personal care products, especially for hair care and skin care as well as fabric softener. "Our new plant now enables us to satisfy the growing demand for local, sustainable products in South America more quickly and directly," said Dr. Claus Rettig, Head of the Consumer Specialties Business Unit.

Brazil is an important growth market for cosmetics and personal care

With this investment, Evonik is expanding its leading position in the areas of personal care and household care. While Evonik already operates production facilities in Europe, the USA, and Asia, the innovative specialty chemicals company wants to profit more from the medium-term positive economic growth in Brazil and South America. The opportunities are good, especially in a country where people pay high attention to their outer appearance and personal care. Experts expect that Brazil is overtaking Japan as the second biggest market for cosmetics.

With its new production plant in Brazil, Evonik can now respond faster and more specifically to its customers' requirements. Costs and complexity in the supply chain and logistics are also reduced. These measures play a large part towards increasing Evonik's competitiveness in South America. "Together with our customers we want to promote innovations and, by doing so, intensify our partnerships," said Rettig, to the customers from the cosmetics and consumer goods industries who were present.

The product portfolio that Evonik plans to manufacture locally is based on renewable resources which fit nicely with consumers’ request for a higher level of sustainability in the production of consumer goods.

For Evonik, the investment in the new plant is also an important signal regarding the expansion of its long-term commitment in Brazil. The Group, whose predecessor companies have been active in Brazil since 1953, will create 80 new skilled jobs in Americana. Evonik Industries now has about 500 employees in Brazil, working in different plants, a distribution center and a regional head office in São Paulo.

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