Wood Group awarded contract for new Evonik production facility

Wood Group has been awarded a new contract by Evonik to deliver engineering, procurement and construction management (EPCM) services for the group's new polyamide 12 (PA12) production complex, it announced on Thursday, to be built at the Marl Chemical Park in Germany.

The FTSE 100 company described PA12 as a high-performance polymer for special applications, which is used across a number end markets including the automotive industry, oil and gas pipelines, and 3D printing.

It said the new facility would supplement the existing PA12 production plant, without disrupting existing production.

The contract added to Wood's existing relationship with Evonik, the firm’s board said, following delivery of basic engineering, EPCM and commissioning support services to the specialty chemical company's new methionine plant on Singapore's Jurong Island.

Successful mechanical completion for the project was achieved safely in December, meeting all milestones of the EPC contract.

“This award marks significant progress in our strategy to develop our chemicals business and expertise across Europe,” said Dave Stewart, chief executive officer of Wood’s Asset Solutions business in Europe, Africa, Asia and Australia.

“Wood is committed to the safe, reliable and successful delivery of this major project supporting Evonik to achieve future PA12 production targets.

“We look forward to building our partnership with this key customer in the downstream sector, leveraging our knowledge and understanding of Evonik's operations to work in close collaboration.”

Dr Ralf Düssel, head of the high-performance polymers business at Evonik, added that the project was Evonik's largest investment in Germany thus far, valued at around €400m, and was expected to increase the group's overall capacity for PA12 by more than 50%.

“In Wood, we have contracted a well-known, globally active technical services provider, for the successful implementation of such a challenging project.”

The project would be executed by Wood's capital projects team based in Milan, and was expected to be completed in the first quarter of 2021.