Evonik divests betaines site to focus on biosurfactants and specialty beauty actives

Evonik has divested its betaines business in Bekasi, Indonesia, as the company continues to adjust its portfolio toward sustainable specialty chemicals. Betaines are widely used across shampoos, conditioners, and skin care products, but Evonik sees greater long-term value in investing in high-growth beauty segments. 

The sale transfers full ownership of the PT Evonik Sumi Asih joint venture to Aekyung Chemical, a South Korea-based company. The transfer includes management, operations, assets, and roughly 60 employees.

Evonik says the decision aligns with its strategy to focus on biosurfactants and high-growth personal care actives. The company cites increased demand for greener and high-performance ingredients.

The portfolio change allows the chemicals company to allocate more funding toward sustainable specialty ingredients, with a focus on “high growth areas such as cosmetic active ingredients.”

“Our site in Bekasi has played a key role in expanding our life sciences businesses across the Asia-Pacific region,” says Ute Schick, head of the Care Solutions business line at Evonik.

“As our focus shifts toward sustainable specialties — such as our investments in biosurfactants — this divestment aligns with our strategic direction.”

The Bekasi site, situated outside the capital of Jakarta, produced betaines and esters, serving as a regional manufacturing hub for Southeast Asia and its surrounding markets.

Through the transaction, Aekyung Chemical gains strategic manufacturing capacity in Southeast Asia, potentially strengthening its footprint in personal care surfactants and regional supply chains.

Evonik has been exiting the global betaines market in stages. The chemicals company divested its Virginia, US, facility in 2022 and later its Milton Keynes facility in the UK in 2020. It will retain its betaine business in Europe and Latin America for the time being.

Evonik says the decision aligns with its strategy to focus on biosurfactants and high-growth personal care actives.Biosurfactant boom

Biosurfactants are gaining momentum in the personal care industry, driven by a growing demand for low-impact, biodegradable ingredients in hair and skin care formulations. 

Belgian start-up AmphiStar has recently secured €2.5 million (US$2.91 million) in funding from the German government to scale up microbial biosurfactant production. The funding will help the company advance fermentation technology and move new biosurfactant molecules toward market launch. AmphiStar also signed an exclusive deal with Caldic earlier this month to bring its upcycled biosurfactants to more customers across Europe. 

Meanwhile, Future Origins is scaling up surfactant ingredients.