Evonik in Turkey

Turkeythe crossroads between East and Westis one of the world's 20 largest economies.
In 2011 it had more than 70 million inhabitants and a gross domestic product (GDP) of
around US$770 billion. Economic development has been exceptionally dynamic in recent
years. Although a slowdown is expected this year, the growth rate should still be far higher
than in Western Europe. Almost half of Turkish exports are to the European Union and
Germany has been the country's most important trading partner for many years. In addition,
Turkey has become an attractive base for exports to the growing Asian markets and the
Middle East.
The country's population is relatively youngthe average age is under 30and is growing by
about 1 percent a year. In addition, rising purchasing power is opening up attractive business
opportunities for Evonik's specialty chemicals. Health, hygiene and nutrition are key areas, but
paints and coatings, the metalworking industry and automotive engineering are also important.
Evonik has enormous experience of the Turkish market and a broadly based presence in the
country. Evonik Degussa Ticaret Ltd., based in Tuzla in the east of Istanbul, is responsible for
distribution within Turkey and exports to the growing markets in Central Asia. This company
celebrated its 25th anniversary in August 2012. We are constantly extending our distribution
structures. Our goal is to step up cooperation with our customers and offer products and
solutions that are tailored specifically to the Turkish market.
Today, Evonik's most important activities in Turkey are silicas, monomers, amino acids for
environmentally compatible animal nutrition and, above all, superabsorbents, which are
essential for the success of disposable diapers. These powder polymers are produced from
acrylic acid and can absorb up to 500 times their weight in liquid and retain it even under
pressure. The required effect can be achieved with just a few grams of superabsorbent.
Evonik's superabsorbents business has had a presence in Turkey since the mid-1990s and
has a strong market position in this country. Our distribution company in the Istanbul region
serves both the leading international diaper producers, which operate worldwide, and midsized Turkish enterprises. In all, there are more than thirty diaper manufacturers in this country, serving the steadily growing domestic market which offers great potential: There are more
than four million children below the age of three and market penetration of diapers is only
around 60 percent. In addition, Turkish output is exported to the Middle East and North
Africa. Evonik is one of the world's main producers of superabsorbents. In recent years our
research scientists and applications technologists have developed increasingly highperformance, high-tech polymers for thinner diapers, feminine hygiene, and incontinence
products and they are constantly working on further innovations in this field.

In addition, Evonik has a 51 percent stake in Egesil Kimya Sanayi & Ticaret in Adapazari, near
Izmit. This joint venture produces silica. Its main customers include manufacturers of technical rubber goods and emulsion paints and, above all, the tire industry. Precipitated silicas
and rubber silanes are key elements in tires with reduced rolling resistance ("green tires"),
which help ensure far lower fuel consumption and CO2 emissions. New regulations on obligatory labeling of new tires in the EU, which come into effect in November 2012, will boost
demand for high-dispersion (HD) precipitated silicas. To support this market trend, we raised
capacity in Turkey in 2011. Adapazari is now the Evonik Group's third largest silica production
facility after Wesseling/Cologne (Germany) and Nanping (China). It mainly serves the markets
in Eastern and Central Eastern Europe. Evonik is the world's leading producer of high-quality
silica and the new production lines for conventional and HD silica in Turkey are an important
milestone in the expansion of our silica activities in Europe.
Our monomer and molding compounds business is also firmly established in Turkey. Methyl
methacrylate (MMA) is used in the production of acrylic glazing, for example, for showers and
baths, and to produce key components that are subsequently processed into PVC for window
profiles and building facades. Turkish demand for MMA has risen considerably in recent
years.
Our PLEXIGLAS business is also doing well in Turkey. A special showroom at Evonik Degussa
Ticaret's headquarters gives customers an overview of the wide range of applications. In view
of the rapid expansion of the country's infrastructure, extruded and cast PLEXIGLAS noise
insulation products such as transparent noise barriers are of particular interest for the Turkish
market.
This year, we will be opening a new near-infrared lab at the Tuzla site to make our local
service offering for amino acids even more attractive. Sound applications know-how is essential for economically viable and environmentally compatible use of amino acids for livestock,
including poultry. The growth drivers for our amino acids business in Turkey are a young and
rapidly growing middle class, and industrialization of local poultry production. Evonik is the
only company in the world that produces and markets all four essential amino acids: MetAMINO (DL-methionine), Biolys (L-lysine), ThreAMINO (L-threonine) and TrypAMINO
(L-tryptophan).
Overall, Evonik's business in Turkey developed very dynamically in 2011. We have around
80 employees in this country and sales increased by a good 10 percent year-on-year. We
have established an excellent position in the attractive Turkish market and shall continue to
grow there in the future.

C-IR, September 2012