Economically, South Korea ranks among the ... - Evonik Industries

Korea
Economically, South Korea ranks among the Asian leaders, after Japan,
China and India, and is one of the world’s major economies. The country has
roughly 50 million inhabitants and GDP in 2011 was around US$1,116 billion.
It ranks among the technology leaders in many markets segments, including
flat screen TVs, mobile phones and computer chips. Shipbuilding, the
chemical and automotive industries and mechanical and plant engineering
are also important. South Korea focuses on top performance in the
technologies of the future and ranks among the international leaders in
education and research.
Evonik Industries, respectively its predecessor companies have been active
in the South Korean market since 1985, when a local sales office was opened.
There are currently two legal entities of Evonik in South Korea: Evonik
Degussa Korea Ltd (EDK) as the sales platform and SKC Evonik Peroxide
Korea Ltd (SEPK), a Joint Venture of Evonik (55% shareholder) with SKC for the
production of Hydrogen Peroxide.
Total number of Evonik employees in South Korea is 90 and consolidated
sales in 2011 were 172 Million Euro. The sales company EDK and the
administration of SEPK moved in April 2012 to Seoul’s Yeouido financial
district.
Evonik Degussa Korea’s biggest sales area in 2011 was Advanced
Intermediates, which accounted for ca. 25% of EDK’s total sales. Biggest
product of Advanced Intermediates in Korea is Isononanol Alcohol, which is
used to manufacture plasticizers for the PVC industry.
Promising developments are sales of Alkoxides for Bio Diesel and TAICROS
for EVA films for Photovoltaic applications.
The Business Unit Inorganic Materials is a very prominent supplier of Silica,
Advanced and Functional Silanes to the South Korean market. For example
HD Silica has been in strong demand due to the focus of the South Korean
tire industry on green tires. An important market sector is the electronic
industry, for which Evonik delivers among others products for wafer
polishing or Hexachlorodisilane as a precursor for the production of memory
chips.

For Business Unit Performance Polymers the automotive and electronic
markets are strong outlets, too. Particularly Polyamide based high
performance polymers are in high and constant increasing demand, as well
as PEEK polymers. The latter is used for instance in electronic applications as
retainer ring for chemical mechanical polishing or in the medical sector as
implants.
Evonik has got a strong market position in DL-Methionine in Korea, serving
its customers from local stock points.
Evonik Comfort & Insulation is a leading supplier of specialty additives for
polyurethane foam manufacturing for more than 50 years. Polyurethane
foams are used in upholstered furniture and mattresses, car seats as well as
for insulation both of refrigerators and in the construction industry. Our
polyurethane additive business was launched in Korea in early 1980's and
Evonik is now the market leader of Silicone Surfactant business, particularly
in the rigid insulation application.
Due to many years of experience of its interdisciplinary team and a highly
sophisticated product portfolio Evonik’s Personal Care business line has
become one of the leading suppliers to the South Korean cosmetic industry,
which is a trend setter and famous all over Asia. One of such trends was the
launch of the meanwhile famous BB creams, which were introduced 2007 by
several South Korean cosmetic producers. BB Cream, or "Blemish Balm
Cream" has multiple functions because it combines Essence, Emulsion, Sun
block, Makeup base and Foundation all in a single product. Evonik supported
its Korean customers in the development of such creams, among others by
introducing the products ABIL® EM90 and ABIL® WE90, which play a key role
as a emulsifiers.
BB Cream has widely influenced other Asian countries, such as Japan, Taiwan,
China, Hong Kong, Singapore, etc. However, not only South Korean brands,
also famous multinational cosmetic brands are launching BB creams in the
global market: Lancome used brand name "B B", and Maybelline also has their
own "B B Base" brand.
The Crosslinkers Business Line occupies a leading position in Isophorone
Chemistry used as raw materials of coating technology and also an important
supplier of high-performance specialty polymers. Since 1980's Crosslinkers
has been serving an excellent position in Korea by introduction of

Isohporone, Isophorone Diamine, Isophorone Diisocyanate with derivatives
for Chemical synthesis, Epoxy and Urethane markets.
In South Korea, Evonik is also extremely well positioned in the fast-growing
hydrogen peroxide market. Since summer 2008 the Korean company SKC has
been producing Propylene Oxide in Ulsan using the innovative HPPO
(Hydrogen Peroxide for Propylene Oxide) process developed by Evonik in
collaboration with the engineering company Uhde. Propylene oxide is a
starting product for polyurethane which is used, for example, to manufacture
instrument panels and cushioning for autos. The world’s first HPPO facility,
which operates under license from Evonik and Uhde, started with a capacity
of 100,000 metric tons p.a. The first HPPO capacity expansion to 130,000
metric tons p.a. is on the way during mid 2012. The hydrogen peroxide
required for this process is supplied "over-the-fence" by SKC Evonik Peroxide
Korea Ltd (SEPK), Evonik’s Joint Venture with SKC, which was formed in early
2011. Prior to the JV formation Evonik ran the Hydrogen Peroxide production
plant wholly-owned. Evonik is the world’s second largest producer of
hydrogen peroxide, an environment-friendly bleaching and oxidation agent,
with a current capacity of ca 600,000 metric tons.
With South Korea’s location at the heart of the dynamic East Asian region and
its excellent infrastructure, Evonik sees ideal prospects of expanding
business in this market in the future.