News from Notch Consulting, Inc.

November 19, 2007

Introduction to Evonik Industries

Filed under: General — Notch @ 12:11 am

Major changes are underway for Degussa AG, the world’s largest producer of precipitated silica and silanes and the second largest producer of carbon black. On September 12, 2007, RAG Beteiligungs-AG, Degussa’s parent, announced the formation of Evonik Industries, a new corporate entity that encompasses all of RAG’s non-coal assets, including Degussa (chemicals), Steag (energy) and Viterra (real estate). The corporate names of Degussa, Steag and Viterra will be discontinued, though existing brand names will continue to be used. The former Degussa now operates as the Chemicals business of Evonik. The Advanced Fillers & Pigments business unit, which encompasses both the carbon black and silica businesses, now operates as part of the Technology Specialties segment.

Click Here for the press release announcing the formation of Evonik Industries.

And here is a PDF of a Powerpoint presentation that provides an overview of the structure and segments of Evonik Industries: evonik-introduction.pdf

On October 29, 2007, Evonik Industries announced that it had acquired the 50% share of Degussa Engineered Carbons held by Engineered Carbons, Inc. DEC now operates as a 100% subsidiary of Evonik Industries. Financial details of the transaction will not be released. Degussa Engineered Carbons was formed in 2002 by Degussa and Engineered Carbons, with each company contributing three carbon black plants to the venture (Ivanhoe, LA, Belpre, OH and Aransas Pass, TX from Degussa; and Baytown, Borger and Orange, TX from Engineered Carbons). The Baytown plant was shut down in December 2002, leaving DEC with five carbon black plants in the US with a combined capacity of about 405,000 tonnes/year as of mid-2007. Evonik’s acquisition of the ECI assets closed just one day before a scheduled public auction of these assets. The auction was scheduled for October 30, 2007 and was to be conducted by JPMorgan Chase Bank at its offices in New York City.

Click Here for the press release announcing the DEC acquisition.

1 Comment »

  1. […] Introduction to Evonik Industries. Evonik Restructures Chemicals Business. […]

    Pingback by Evonik IPO on Hold due to Uncertainty in Finacial Markets « News from Notch Consulting Group — February 25, 2008 @ 2:00 pm

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