BASF and Evonik announced separate manufacturing investments Nov. 3, with BASF planning a new electronic materials production site in Nanjing, China, and Evonik completing a €52 million expansion of its silicone production platform in Essen, Germany. The developments come as Evonik continues to resist entering formal takeover negotiations with BASF.

BASF signed an investment agreement with Nanjing Jiangbei New Area to establish the electronic materials facility in Nanjing Jiangbei New Area Materials High-Tech Park. The site will support local production of materials for semiconductor manufacturing, along with technical services and customer collaboration. BASF said the project is part of its strategy to expand regional manufacturing and supply capabilities. Startup is expected by the end of 2028.

Separately, Evonik completed construction of a new production plant and tank farm at its Essen Goldschmidtstrasse site. The investment increases production capacity for organomodified silicones, additives used in polyurethane foams for insulation, mattresses and automotive seating, as well as adhesives, coatings and personal care products.

The expansion also includes logistics improvements connecting existing production assets. A new 150-meter pipe bridge links four production units and 15 manufacturing assets to the tank farm. Five stainless-steel storage tanks, the tallest measuring 24 meters, provide additional storage for raw materials. Evonik said the configuration reduces the need to transport intermediates and finished products between sites and decreases reliance on short-term deliveries.

The project was completed while the Essen facility remained operational. The site is part of Evonik's international silicone production network, which also includes facilities in Germany, Italy, China and the United States.

Evonik also reported on Nov. 3 stronger third-quarter results, with adjusted EBITDA increasing 40% year over year to €629 million. The company expects full-year earnings to reach the upper half of its €2 billion to €2.2 billion guidance range. Higher volumes and selling prices supported the results, while capacity utilization for high-performance polymers increased in response to improved demand.

The manufacturing announcements come as the two companies remain at odds over BASF's proposed acquisition of Evonik. On Oct. 30, Evonik's executive board said it would not enter into formal negotiations following a letter from BASF expressing interest in making a voluntary public takeover offer. Evonik said it remains focused on developing as an independent company but is willing to participate in a confidential, informational exchange with BASF.

As reported Oct. 23, BASF had reportedly increased its proposed offer to approximately €24 per share, valuing Evonik at more than €11 billion, according to people familiar with the transaction cited by German news agency dpa. BASF also pledged to maintain employment protections through 2032 and preserve key German sites and research operations under a potential acquisition.

Why it Matters

Both investments target specialized materials markets with significant manufacturing and supply-chain requirements. Global semiconductor materials sales increased 6.8% to $73.2 billion in 2025, according to industry association SEMI, with China accounting for $15.6 billion of the market. BASF's planned Nanjing facility adds to local manufacturing capabilities serving that industry.

At Evonik's Essen site, the investment focuses on integrating production and storage infrastructure to reduce material transfers between facilities and improve supply coordination. The project also demonstrates how existing chemical production sites can add capacity and upgrade logistics infrastructure while maintaining ongoing operations.

BASF expects the Nanjing facility to begin operations by the end of 2028. The company did not disclose the investment amount or planned production capacity. Evonik has not disclosed the additional annual production capacity resulting from its Essen expansion.