German chemical giant deepens footprint in China amid strengthening Sino-German ties

As China continues to play an increasingly pivotal role in global industrial transformation, Evonik, a global chemical company headquartered in Germany, is reaffirming its long-standing commitment to the Chinese market with a series of strategic expansions and innovation-driven investments.

A major milestone in this journey is the inauguration of Evonik's largest medical device application center in Shanghai, serving the entire Asia-Pacific region. This state-of-the-art facility, which specializes in components for bioresorbable medical devices, is designed to accelerate the development of advanced healthcare solutions tailored to the evolving needs of the Chinese market.

"By establishing the medical device center in China, we are not only responding to urgent market demands but also reinforcing our strategic commitment to this vital region," said Xia Fuliang, president of Evonik Greater China. "Our innovation efforts here are aligned with China's high-quality development goals, particularly in the areas of green transformation and industrial upgrading."

China is not only the world's second-largest economy but also the largest chemical market globally, accounting for 42 percent of the global chemical market. China continues to play a pivotal role in global industrial and supply chains—not only as the world's largest chemical producer, but as a strategic partner in high-end and green transformation.

For Evonik, China's dynamic market environment—marked by faster shifts in demand, intensified competition, and a growing emphasis on sustainability—offers both challenges and opportunities.

Evonik's roots in China trace back to the 1930s, and today the company operates across 17 locations with more than 2,700 employees. In 2024, Evonik generated €1.4 billion ($1.65 billion) in revenue from China, representing approximately 10 percent of its global business. Despite challenges, such as tariff policies and international geopolitical issues as well as "overcapacity" and intense competition in the country, the company has managed to realize sustainable business growth in the nation in 2025.

Aligned with Evonik's ambitious targets set for 2027—including an 11 percent return on capital employed (ROCE) and a €1 billion increase in adjusted EBITDA compared to 2023—the company aims to raise China's share of global revenue to 15 percent by 2032, while boosting Asia's overall contribution to one-third.

For Evonik, innovation and sustainability are fundamental elements of a future-oriented business model. Under its new innovation strategy, the company is focusing on three growth areas: bio-based solutions, the energy transition, and the circular economy.

The bio-based solutions aim to transition from petrochemical and coal feedstocks to sustainable alternatives, such as plant-derived surfactants that improve eco-efficiency in personal and home care products. In parallel, Evonik is driving the energy transition through specialty materials, including advanced membranes for high-efficiency green hydrogen production. The circular economy pillar focuses on providing systemic solutions for plastic recycling through mechanical and chemical processing technologies.

By 2032, Evonik aims to generate an additional €1.5 billion in sales from products and solutions in these growth areas.

In China, this strategy is closely aligned with China's sustainable development goals and is taking shape through a series of high-impact initiatives.

For years, Evonik has been stepping up R&D in the growth markets, aiming to help strengthen the competitiveness of local customers through research and applications geared specifically to regional megatrends and local needs.

Evonik Shanghai Innovation Park

The Shanghai Innovation Park, one of Evonik's six global R&D hubs, exemplifies this approach. It integrates fundamental research, applied technology, and customer collaboration. In addition to the new Shanghai Medical Device Center, the hub also houses the company's global lithium-ion battery technology center. In 2026, the company will further expand the innovation ecosystem with new facilities, including an Asia Skin Research Center to address regional skincare needs, a PEEK Application Development Lab for electric vehicle components, and a Hydrogen Competency Center to support China's energy transition.

Evonik's Multi-User-Site-China located in Shanghai

Evonik is also deepening local partnerships and local-for-local production. In the coming months, the company will inaugurate a joint venture plant in Leshan, Sichuan. The specialty hydrogen peroxide plant will support the semiconductor, solar manufacturing, and food packaging industries. Another investment project in Nanjing, Jiangsu – the expansion of specialty amines production – will also be put into operations in 2026, serving automotive, construction, and furniture sectors. These are the fields in which China is accelerating global competitiveness.

Innovation and green transformation are at the heart of China's high-quality development strategy. These priorities are not only reshaping the domestic industrial landscape but also injecting new momentum into global economic growth and international cooperation. For Evonik, this alignment presents a unique opportunity to contribute expertise, co-develop sustainable solutions, and support China's industrial upgrade.

"The innovations and collaborative models we develop in China are not only tailored to local needs but also serve as valuable references for our operations in Asia and globally," commented Claus Rettig, president of Evonik Asia Pacific. "We are in China for China, the region and the world."

Amid global changes, Evonik believes in China's market and innovation potential and opportunities for cooperation for multinational enterprises. "We are committed to jointly fostering a resilient and sustainable future," Rettig said.