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Performance Materials builds on targeted projects and new business ideas

Essen, September 26, 2017

• Strategy to become the leading provider of polymer materials and intermediates
• Positioning in the upper echelon of the relevant competition
• Leveraging of potential for improving operating result through collaborations, targeted projects, and further development of business models

Essen, Germany. Performance Materials, a segment of Evonik, has excellent products, strong market positions, end-to-end process management, and, not least, operational excellence. The specific projects being promoted to further strengthen the positioning of its businesses include the following:

- Start of a membrane electrolysis facility jointly with AkzoNobel in the fourth quarter of 2017. This will improve supply reliability for potassium hydroxide and chlorine.

- A new sodium cyanide plant has been in operation since the fall through the joint venture CyPlus Idesa in Coatzacoalcos (Mexico). This will expand the company’s local market position in the area of precious metal mining.

- At the beginning of June, representatives of Evonik and Bayer CropScience consolidated their partnership of more than 20 years with the successful startup of the recently constructed ACM plant in Mobile (Alabama, USA).

- In Weiterstadt, the world’s most advanced facility for production of stretched PLEXIGLAS® sheets for aircraft windows will soon start operation. Evonik is investing a two-digit million euro amount in this plant as well as in a new production line for PMMA films, thereby strengthening both the Weiterstadt site and the PLEXIGLAS® brand name.

Between September 20 and 23, 2017, 190 managers met to promote the further development of Performance Materials in other ways through new and intelligent ideas.

“We’ve trimmed our sails and are catching the tailwinds this year. We’re measuring our progress not only in figures, but also by the promising projects that our employees are implementing,” says Caspar Gammelin, chairman of the Management Board of Performance Materials. “We have some very promising ideas for how to approach the intelligent shaping of our chemical business. Now it’s a matter of putting them into action step by step.”

At the meeting, more than 40 novel and often unconventional approaches were advanced for the further development of business models. These include:

- Chemeasy: Selling potassium hydroxide (KOH) online: On the online platform, customers of Functional Solutions can generate a reference code at the current price, which then remains valid for 48 hours for a binding order. This represents a first step toward the digital ecosystem.

- Black & Bright: The international marketing campaign for methacrylates that showcases the creative possibilities of PLEXIGLAS®. The objective is the use of applications not only by direct customers but also by their customers—to expand business relationships.

- Expanded sales and marketing channels: Serving a variety of customer needs in the optimal way. An easily operated online-supported pilot project for PLEXIGLAS® has just started up in the UK. Performance Intermediates is now planning new distribution channels for MTBE, with the same objectives.

New communication channels: New ways of approaching customers are being tried out and developed via Linked-In campaigns. For example, in a current series of posts under the title #WMA “We met already”, Performance Intermediates is showing where products such as 1,3-butadiene are encountered in everyday life. 

Captions:
Caspar Gammelin 1: Caspar Gammelin, Chairman of the Board of Management of Performance Materials: We have some very promising ideas for how to approach the intelligent shaping of our chemical business. Now it’s a matter of putting them into action step by step.

Caspar Gammelin 2: Caspar Gammelin, Chairman of the Board of Management of Performance Materials: We’re measuring our progress not only in figures, but also by the promising projects that our employees are implementing.

Event 1: 190 experts discussed more than 40 ideas for new business models.

Event 2: Intelligently shaping of the ChemicalBusiness is the future of Performance Materials.



Company information
Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-orientated innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik’s corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world with more than 35,000 employees. In fiscal 2016, the enterprise generated sales of around €12.7 billion and an operating profit (adjusted EBITDA) of about €2.165 billion.

About Performance Materials
The Performance Materials Segment is managed by Evonik Performance Materials GmbH. The segment focuses its global activities on developing and manufacturing polymer materials and intermediates, especially for use in agriculture and in the rubber and plastics industry. In 2016, the segment’s roughly 4,400 employees generated sales about €3.2 billion.

Disclaimer
In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.

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Michael Richter

Performance Materials