German specialty chemicals group Evonik Industries said will invest around Eur200 million ($260 million) in South America by 2014, bringing online new capacities for the production of raw materials for the cosmetics, feed and biodiesel industries.
These investments will enable Evonik to expand its presence in the region, in particular Brazil, and accelerate regional sales. The company plans to increase total revenue from Eur650 million in 2011 to over Eur 1 billion in 2016.
"The investments are a clear testimony to our commitment in South America and an element of our strategy to enable us to play a role in the region's growth," said Patrik Wohlhauser, member of Evonik's executive board responsible for the region.
In late 2011 the company said it would build a new plant in Brazil that will produce a wide range of ingredients for cosmetics and consumer goods. With the annual capacity of up to 50,000 mt/year, the construction works are expected to be finished by early 2014.
The company's second project in Brazil involves construction of a plant to produce Biolys, a source of amino acid L-lysine for the animal feed industry. The capacity is also expected to come online in 2014.
In September 2011 Evonik also announced plans to build a new catalyst plant for biodiesel in Argentina to serve the growing biodiesel market in South America. The plant, with the annual capacity of more than 60,000 mt, is expected to be operational in mid-2013.
