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Evonik Industries to invest in new Hydrogen peroxide plant

31
Oct '08

Evonik Industries AG is planning to build a new facility for the environment-friendly bleaching and oxidation agent hydrogen peroxide at the Triunfo petrochemical complex near Porto Alegre (southern Brazil).

Hydrogen peroxide is mainly used in the paper and pulp industry. The investment, which still has to be approved by Evonik's Supervisory Board, will be in the region of €45 million.

Construction is scheduled to start in mid-2009 and the plant should come on stream in early 2011. The new facility will have capacity of 40,000 metric tons p.a. and about 25 employees.

The investment plans are a response to the dynamic growth of the pulp market, which has created additional demand for hydrogen peroxide. Growth rates of over 10 percent p.a. are forecast for South America for the period to 2012.

Experts forecast that the Brazilian pulp market will almost double from around 6 million metric tons to around 13 million metric tons by 2013. Most of the necessary forestry plantations are planned for southern Brazil.

The Triunfo site is part of a chemicals park and is logistically well-placed at the heart of the growing pulp industry. The new facility will enable Evonik to participate in the growth momentum in Brazil and strengthen its excellent global competitive position.

The company is the world's second largest producer of hydrogen peroxide with total capacity of over 600,000 metric tons p.a. Global demand for this product as a pulp bleaching agent is over 3 million metric tons p.a.

Evonik has been producing hydrogen peroxide in Brazil since 1997. In 2007 capacity at the Barra do Riacho site in the state of Espírito Santo was raised to 70,000 metric tons p.a.

Hydrogen peroxide is one of Evonik's oldest business activities but also one of its fastest growing and most innovative. Through successful process innovations, the company has gained access to new applications and promising future markets.

In addition to the bleaching of paper and pulp, hydrogen peroxide is now used in the synthesis of propylene oxide, which finds its main application in the production of polyurethane pre-products. Applications for polyurethane include cushioning for automotive seats and furniture.

To optimize supply of hydrogen peroxide to the world market, Evonik has production facilities at eleven locations—in Germany, Belgium, Italy, Austria, the USA, Canada, Brazil, Korea, New Zealand and South Africa.

Click here to read outlook on Hydrogen peroxide business of Evonik Industries.

Evonik Industries AG

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