Evonik to make more animal feed ingredients here

Singapore

THE trade conflict between the United States and China has led to slower growth for Germany-based chemicals giant Evonik Industries.

But executive board chairman Christian Kullmann, in giving this assessment at a press briefing, still called target growth levels of above gross domestic product "a must".

Speaking at the launch of the company's new Singapore plant on Tuesday, he said business segments such as healthcare can still register "good and steady growth, despite the cooling momentum in the Chinese market's automotive and construction industries.

"We consider Singapore our gateway to extend and expand our businesses, our growth, in the South Asian region," he added.

Evonik has put about 500 million euros (S$768.8 million) into its new facility in Singapore. The plant will make methionine, a protein component used in animal feed supplements.

Another methionine plant here, which opened in 2014, is part of the same complex on Jurong Island.

Singapore, which houses an innovation hub for Evonik, also serves as the company's headquarters for the South Asia-Pacific, which contributed 6 per cent of its 15 billion euros in sales last year.

Evonik has identified animal nutrition as a growth driver, but also makes materials and additives for automotive, construction, rubber, plastics and other industries.

Singapore is set to produce more than two-fifths of Evonik's methionine globally, as its annual capacity here doubles to 300,000 tonnes.

It has six methionine facilities worldwide, including in Belgium, Germany and the United States.

Evonik regional president Peter Meinshausen, citing Singapore's role as a trade and logistics hub, told a pre-launch press briefing that the output in the city-state will be driven by growth in end-markets across Asia.

"We are here to produce, and we are here to produce at full capacity," he said, adding that investments like the new complex are, "in many cases, the completion of a global asset footprint".

Evonik anticipates animal protein demand to rise steadily, on population growth and sustainability needs.

Deputy Prime Minister Heng Swee Keat characterised the Evonik facility as an investment in food security and innovation in the Republic, which is ploughing funds into local food production and agri-food research.

The food and nutrition ecosystem "will also contribute to our broader effort to build Singapore as a global-Asia node of technology, innovation and enterprise", said the minister, who named specialty chemicals and food and nutrition as growth sectors.

The new plant is expected to add more than 100 jobs to the company's 600-strong headcount here. Evonik also runs an oil-additives plant on Jurong Island and a research hub in Biopolis.