Restructuring at Niederkassel Site. Evonik to Shut Down its Malonate Plant as Scheduled

Niederkassel, Germany, 08.05.09. In June of this year, Evonik Industries will close the malonates plant in Niederkassel, a city on the Rhine River, as scheduled, thereby reaching an important goal in the long-term restructuring of the Niederkassel site. In line with a concept adopted at the end of 2006, the company wants to secure the future of the site in the long run by concentrating on products with good long-term market prospects. In Niederkassel, then, Evonik will concentrate on alcoholates, which are used in producing biodiesel fuel, and on potassium derivatives. The long-term market prospects for both product groups are good.

Producing malonates, which are used primarily as precursors in the chemical, pharmaceutical, and perfume industries, is no longer profitable in Europe. The reasons are overcapacity and raw material prices, which are too high compared to those in other countries. In particular, businesses in China have intensified the competition. The employees who have been working in the malonate plant so far will be used in other production areas at the facility. Evonik currently employs about 600 people in Niederkassel.

Information on the Group
Evonik Industries is a creative industrial concern headquartered in Germany with Chemicals, Energy and Real Estate Business Areas. Evonik is one of the leading companies in the world in specialty chemicals and an expert in generating electricity from hard coal and renewable energies, as well as one of the largest private residential real estate companies in Germany. Creativity, expertise, continual self-renewal, and reliability are our strengths. Evonik is active in more than 100 countries. About 41,000 employees generated sales revenues of about EUR 15.9 billion and operating profits (EBITDA) of about EUR 2.2 billion in fiscal year 2008.

Legal notice
To the extent we make forecasts or express our expectations in this press release or our statements relate to the future, the forecasts or expectations expressed may be associated with known or unknown risks and uncertainties. Actual results or developments may differ based on changes in general conditions. Neither Evonik Industries AG nor its affiliates assumes any obligation to update the forecasts, expectations, or statements contained in this press release.

Dr. Edda Schulze
Phone +49 69 218-2712
Fax +49 69 218-62712
edda.schulze@evonik.com

Evonik Degussa GmbH
Weißfrauenstraße 9
60287 Frankfurt am Main
Germany
Phone +49 69 218-01
Fax +49 69 218-3118
www.evonik.com

Supervisory Board
Dr. Klaus Engel, Chairman
Board of Management
Patrik Wohlhauser, Chairman
Ralf Blauth, Dr. Thomas Haeberle

Registered Office is Essen
Register Court
Essen Local Court
Commercial Registry B 20227

This release was published on openPR.