GERMAN chemical giant Evonik is investing €80m (US$94m) to expand its biotechnology capabilities at its Fermas site in Slovakia.
Located in Slovenská Ľupča, the site specialises in downstream processing, particularly biofermentation. The latest investment will expand fermentation technology to support the company’s drug substances business.
The move comes as the European chemicals sector faces weak demand, driven in part by strong competition from Chinese manufacturers.
Fermentation technologies
The Fermas plant initially focused on producing amino acids for animal nutrition. It was bought by Evonik in 1998 and has since shifted to develop fermentation-based products for pharmaceuticals, cosmetics, personal care and animal nutrition.
In 2024, Fermas became the first site in the world to produce industrial-scale rhamnolipid biosurfactants, an active ingredient used in dish washing soap, shampoos and detergents.
Guido Skudlarek, head of Evonik’s health care business line, said: “With demand for complex pharmaceutical ingredients continuing to rise, our enhanced biotechnology capabilities will enable us to support customers with reliable, scalable and sustainable production.”
European chemicals
Despite strength in biotechnology and research and development, Europe’s chemicals sector has struggled to keep pace with global demand, with China maintaining a competitive edge in large-scale, lower-cost manufacturing.
The petrochemicals industry has been particularly affected, largely due to high energy prices, according to a trends report published by the European Chemical Industry Council (Cefic).
However, though demand is low, Cefic says the sector is performing above the crisis levels seen between 2015 and 2019. The report also pointed to a modest boost in confidence towards the end of 2025, supported by rising order volumes and increased inventories.