Evonik buys its former joint venture in China

The acquisition, from the Chinese shareholders Yuncai Wang and Jingkun Wang, will make Degussa Lynchem a wholly-owned subsidiary of Evonik with shares held through Evonik Degussa China Co.

The joint venture between Evonik and its Chinese partners was established in 2006 by the purchase of a 51% stake in Lynchem Co. in Dalian, China.

“In taking over the remaining shares, we are strengthening our global exclusive synthesis business and further expanding it in line with our successful concept of horizontal integration,” says Dr Alfred Oberholz, member of the executive board of Evonik Industries AG with responsibility for the Chemicals Business Area.

Evonik is the first European supplier to have implemented the concept of horizontal integration in exclusive synthesis. This allows for intermediates and starting materials, as well as active ingredients that are not patent protected, to be produced at competitive cost in China. At its European sites, Evonik concentrates on refined intermediates and patent-protected active ingredients. At the same time, customers benefit from Evonik’s technology portfolio at its European sites, and from its long experience in governmental and patent law regulations regarding the manufacturing of patent-protected intermediates and active ingredients.

Evonik’s Exclusive Synthesis Business Line concentrates on customer-specific production of pharmaceutical intermediates, active ingredients, and fine chemicals with stringent quality requirements. With its worldwide production and research network, the business line offers a comprehensive service, ranging from synthesis development on the laboratory scale to commercial production in the US Food and Drug Administration-certified facilities.

Financial details of the acquisition have not been disclosed.

The Exclusive Synthesis Business Line is part of the Health and Nutrition Business Unit.