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05.11.2020, Alzchem, Aromatic and Aliphatic Nitriles, Corporate News

AlzChem Group AG expands nitrile production by 50%

Due to the high demand, AlzChem is expanding nitrile production.

Trostberg, November 5, 2020 – AlzChem Group AG, a vertically integrated specialty chemicals supplier with a leading market position in selected niche markets, consistently continues its growth and investment strategy even in the current environment. Due to the continuing high level of market demand, nitrile production will be expanded by up to 50% by the second quarter of 2021. The investment volume amounts to approximately EUR 12 million. The currently available capacities had only been expanded as of July 2019 and quickly reached 100% capacity.

The additional nitrile production capacities are intended to primarily support the growth of medications and biocides. AlzChem takes advantage of the market trend towards more robust supply chains, thus following the trend of increased supply security through a European supplier. The expanded nitrile production plant is again based on AlzChem’s proven gas phase technology, which is continuously being optimized by AlzChem engineers and chemists and which sets the state of the art and standards in terms of raw material yield and environmental aspects.

Andreas Niedermaier, CEO of AlzChem Group AG: “Our nitrile business has shown stable growth rates for several years and we are convinced that this development is sustainable. The current market demand will continue to significantly exceed our new total capacities. This gives us a high degree of planning security, as do our customer contracts, some of which are long-term. Supported by these positive market dynamics, we continue our proven strategy of making very targeted investments and actively manage our growth. This is particularly important in the current environment.”

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About AlzChem

AlzChem is a globally active specialty chemicals company that is predominantly among the market leaders in its fields of activity. AlzChem benefits in particular from the three very different global megatrends of sustainability, population growth and healthy aging. AlzChem products offer attractive solutions in a wide range of applications.

The company sees interesting growth prospects for itself above all in the fields of human and animal nutrition, pharmaceuticals, agriculture, fine chemicals, metallurgy and renewable energies. The broad product range includes, for example, dietary supplements, plant growth regulators and precursors for corona tests.

The company employs around 1,630 people at four production sites in Germany and Sweden, and at two sales companies in the USA and China. In 2020, AlzChem generated consolidated sales of around EUR 379 million and EBITDA of around EUR 53.8 million.

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