Evonik says nation key to sales, profits

Specialty chemicals company Evonik has strong confidence in the long-term prospects of the China market, focusing not only on sales growth but also on increasing profits, a senior executive said.

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 region, with sales in China exceeding 2 billion euros, said Xia Fuliang, president of Evonik's China unit.

"Currently, sales in the United States and Europe 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 China market," Xia said in a recent interview in Shanghai.

"In recent years, the company has continuously increased its investment in the China market to seize the opportunities brought on 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 said.

Evonik, which is based in Germany, has seen business grow in China over the past few years, said Xia. Despite challenges, such as US tariff policies and international geopolitical issues as well as "overcapacity" and intense competition in the country, the company has managed to realize single-digit growth in sales in the nation 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 China 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 has identified sectors such as new energy vehicles, coatings and personal care as major sources of business growth in China.

Xia said China's automotive production exceeded 31 million units last year, a figure unimaginable for any other country. With a shift away 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 July, the company opened its largest medical devices 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 semifinished components with customized properties, such as bio-absorbability, low friction coefficient, anti-thrombosis, and antibacterial 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, Jiangsu province, to better serve the construction, automotive, and home sectors. The company also plans to establish a new joint venture plant in Leshan, Sichuan province, to help 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.

At the eighth China International Import Expo, Evonik will show four globally premiered products, of which two have been developed in China. One 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.