Evonik has sold its betaines business and production site in Bekasi, Indonesia, to the South Korean chemical company Aekyung Chemical Co.. The transaction comprises 100 percent of the PT Evonik Sumi Asih joint venture including its management, operations, assets and around 60 employees.

This divestment is part of Evonik's larger strategic shift to focus its Care Solutions portfolio on sustainable specialty chemicals, such as biosurfactants and high-growth cosmetic active ingredients. The company is gradually exiting the global betaines market, having previously sold its betaines facilities in the U.S. and the UK, though it will retain the business in Europe and Latin America for the time being.

Aekyung Chemical gains strategic manufacturing capacity in Southeast Asia through this acquisition, strengthening its regional supply chains for personal care surfactants. Betaines are key ingredients in personal care products like shampoos, hair conditioners, and skin care products.

“Our site in Bekasi has played a key role in expanding our life sciences businesses across the Asia-Pacific region,” said Ute Schick, head of the Care Solutions business line. “As our focus shifts toward sustainable specialties – such as our investments in biosurfactants – this divestment aligns with our strategic direction.”

Evonik has long held a leading global position in the betaines market. However, over the past 15 years, Evonik has been following a strategy of bridging sustainability and performance through tailored, eco-friendly solutions for the personal care and cleaning industries. Adjusting the portfolio of the Care Solutions business line gives Evonik further opportunities for investments in sustainable specialties, especially within high growth areas such as cosmetic active ingredients.

In August 2022, Evonik divested its betaines business in Hopewell, Virginia in the U.S. This followed the sale of its betaines business in Milton Keynes in the UK in August 2020 and the consolidation of its European betaine operation in Essen, Germany. The divestment in Bekasi is the latest step in Evonik’s strategic shift away from assets and activities relating to its global betaine operations. Evonik will continue its betaines businesses in Europe and Latin America.

Betaines are amphoteric surfactants, which are used as ingredients in the formulation of shampoos, hair conditioners and skin care products for the personal care industry and in a wide range of other consumer applications.