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Evonik sales up 10% in China

By Yu Hongyan (chinadaily.com.cn)
Updated: 2009-03-27 15:08

German industrial conglomerate Evonik Industries AG said its sales in China rose 10 percent to 821 million euros ($1.12 billion) last year, and it expects sales to reach 2 billion euros here by 2013.

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In the face of the economic slowdown, the world’s leading specialty chemicals producer said it plans to keep costs in line and keep a tight grip on cash flow within the company.

China is now the world’s third-largest chemicals market after the US and Europe, and Evonik will invest more than 100 million euros in the Chinese market in the next few years, Yu Dahai, CEO of Evonik Greater China, told the 21st Century Business Herald in December.

The German company expects to record 1 billion euros in sales in China this year, Yu told the newspaper.

Evonik began specialty chemicals production in China in the early 1990s, and now has 19 companies, 15 production sites and 4,000 employees in the country.

Evonik’s sales rose 10 percent to 15.873 billion euros globally in 2008. But bitten by the financial crisis, earnings before interest, taxes, depreciation and amortization (EBITA) dropped 3 percent to 2.2 billion euros.