Evonik Strengthens Its Investment in R & D   

By John Zheng   

To cope with the current difficult financial situation worldwide, most of the companies plan to cut down their cost significantly, however, on October 1st, 2008 Evonik Industries opened the new Eco2 Science-to-business Center (S2B Eco2) at its Marl site in Germany.
    "Evonik invests more than 300 million Euros each year on Research and Development. This is because we are well aware of the value of innovation for a global company like Evonik. About 20% of our sales in the Chemicals Business Area are generated from products, technologies, and processes developed within the last five years," said Dr. Alfred Oberholz, Member of the Executive Board of Evonik Industries AG at an interview held by CCR on November 17th, "We are extremely optimistic that the new center will develop innovative, cost-effective and efficient solutions and new products over the next few years and help us to continue being successful to cope with the difficult financial situation worldwide."

1. Introduction of the new center

The new S2B Eco2 is the third of its kind at Evonik. The company is already carrying out research and development very successfully in the two existing Science-to-business centers, Nanotronics and Biotechnology, which are also located in Marl, Germany.
    Eco2 stands for "Where Ecology meets Economy". In view of this, Evonik has selected 21 projects for the initial portfolio of the centre. These projects focus on energy efficiency and climate protection. More specifically they include CO2 separation and utilization, alternative power generation, power storage, solutions for improving energy efficiency for customers and increasing energy efficiency in Evonik processes.
    "We are providing more than 50 million Euros from our own funds up to the year 2013 alone. Together with the budgeted subsidies, the total financial commitment will be in the high two-digit million-Euro region," commented by Dr. Oberholz.
    At the S2B Eco2 centre knowledge and ideas can be translated into successful products and services due to the vertical integration of all our R&D activities along the value chain with academic, research and industrial partners. All our development projects extend across more than 1 business area," said Dr. Oberholz. "The "cross business area" concept of Evonik plays an important role here as Evonik is known as a focused industrial group. In the Eco2 Science-to-Business Center we're now exploiting for the first time, and on a grand scale, the opportunities arising from our position as an industrial concern in the fields of chemistry, energy and real estate."  

2. Innovation and Energy Efficiency

Evonik uses its innovative power to echo of the global megatrend of Energy Efficiency. One example is the development of the lithium-ion battery. Its researchers have developed a ceramic membrane that, when used between the anode and cathode of a car battery, solves the safety problem that has so far prevented large-scale use of the lithium-ion battery in cars. As a result of this project, Evonik was nominated last year as one of only four candidates for the prestigious Deutscher Zukunftspreis fuer Technik und Innovation (the German Federal President's Prize for Technology and Innovation) awarded annually, which acknowledges the pioneering nature of the research.
    Another example is its energy efficient PLEXIGLAS (R ) material. Its heat-retaining properties can reduce energy consumption in greenhouses by some 55%, reducing direct and indirect CO2 emissions.  PLEXIGLAS HEATSTOP (R ) roof glazing also reduces the power consumption of air-conditioning systems. The heat-reflecting pigments ensure that a large proportion of the sun's energy (infrared) is reflected. Interior spaces with domed roof lights made out of PLEXIGLAS HEATSTOP (R ) heat up to 50% less than standard domed roof lights.

3. R & D in China

For a creative industry group such as Evonik, linking innovation and market proximity is a crucial success factor. Evonik therefore opened a Research & Development Center in Shanghai in 2004, which was expanded in mid-2007. This investment totals more than 20 million Euros. The R&D Center provides the opportunity to develop specific products locally and to quickly introduce them to potential customers. This approach enables the businesses to cater much more effectively for the requirements of the Chinese market.

4. Cooperation with domestic academic institutes

Following the successful cooperation with East China University of Science and Technology, Jilin University and China Europe International Business School, Evonik decided to extend the scholarship and sponsorship program to four leading universities specialized in chemical areas all over China this year. The aim of the program is to cultivate more talents in cooperation with the universities, while Evonik can share the R & D results of science and technology innovation.
   Moreover, in addition to the fruitful collaboration with Shanghai Petrochemical Academy to develop qualified operators for its production sites, the signing ceremony for the joint-education cooperation program between Evonik China and Liaoning Institute of Science and Technology (LSTI) has been officially established in LSTI in Benxi of Liaoning province on September 25th. The joint program will train students from LSTI for ENCC through tailor-made curriculum.
    "Overall, our ambitious growth targets for China call for a broad range of qualified employees. With this objective in mind we implemented comprehensive HR initiatives and programs to attract, develop and retain talents," commented by Dr. Oberholz.
5. Environmental protection and energy efficiency in Evonik China

"Environmental protection is a key part of our sustainability philosophy. This belief is an important element of Evonik's strategy. Environmental protection, a cornerstone of this philosophy is integrated into the management of all our business processes", said Dr. Oberholz. Evonik aims to achieve by 2014 a 20% reduction in its own greenhouse gas emissions in China and since 2004 has already achieved more than one third of this goal. Water consumption and production waste have been reduced by 35% and 20% respectively in two years.   
   In China, Evonik launched the "Energy-saving" projects, giving solutions to automobile, construction, renewable and conventional energy, as well as making contribution to the realization of a 20% increase of energy efficiency in the "11th Five-Year Program" proposed by Chinese government and sustainable development of China's energy industry. To optimize energy use, improve efficiency and save cost, an "Energy Check" project is started, in which all of China's production sites and joint ventures went through an internal checking on energy use by energy management department.
    "When it comes to the problem of global energy shortage, the chemical industry should be part of the solution, not the problem itself.  We believe that being a creative industry group, Evonik is in a position to take a leading role in providing innovative solutions for energy efficiency", commented Dr. Oberholz when mentioned the relation between innovation and energy efficiency. "Furthermore, we are not only concerned with producing energy efficient products, but on producing these very products in an efficient way."