Global Chemical Giant Commemorates Start of Business in Indiana

Governor Mitch Daniels joined executives from the global specialty chemical company, Evonik Industries AG, today to announce the company has completed the acquisition of Tippecanoe Laboratories and commenced its first official day of production in Indiana.

In October, Eli Lilly and Company announced that it would sell the Tippecanoe Laboratories manufacturing facility to Evonik as part of its reorganization strategy. The sale includes the transfer of the 2,400-acre property and the preservation of more than 650 jobs that might have otherwise been eliminated.

"Any time we can welcome a pre-eminent global company to Indiana, it is a great day," said Daniels.  "Evonik has tremendous future growth potential and today is just the beginning of what we hope to be a productive relationship."

Evonik's Indiana facility adds to its North American Exclusive Synthesis business which is focused on the customized production of pharmaceutical intermediates, active pharmaceutical ingredients, amino acids and high-quality derivatives.  The company will produce pharmaceutical ingredients for Lilly and ultimately other pharmaceutical companies.

"We greatly value the skilled workforce here in Lafayette," said Thomas Bates, Evonik regional president. "The tremendous success here is a testament to Mitch Daniels' extensive efforts as well as the excellent work of plant manager Larry McShane, and his entire Tippecanoe team. This is good for the community, for the employees and for the region."

Evonik of Essen, Germany, recorded nearly $16 billion in sales in 2008 and employs more than 41,000 associates across the globe. 

"Our customers benefit from the technology portfolio as well as from our expertise in the production of intermediates and active pharmaceutical ingredients," said Dr. Hans-Josef Ritzert, Evonik senior vice president, business line exclusive synthesis and amino acids. "The global production and research network of the business line offers a seamless service portfolio, ranging from the co-development of synthesis together with customers on the laboratory scale to commercial production in U.S. Food and Drug Administration-certified facilities."

The Indiana Economic Development Corporation offered Evonik up to $10 million in performance-based tax credits and up to $200,000 in training grants. 

"Indiana is a leader in biopharmaceutical development and manufacturing, and Evonik's acquisition of the Tippecanoe facility will strengthen the sector even more," said David Johnson, president and chief executive officer of BioCrossroads.  "With the industry continuing to outsource, companies like Evonik are a necessity as pharmaceutical and biotech companies across America and throughout the world work to move their discoveries from the laboratory to the marketplace more quickly and at a lower cost."

Evonik's newly established presence in the state builds on central Indiana's $13.6 billion global life sciences sector.   According to a 2008 study conducted by the Business Research Center of Indiana University's Kelley School of Business, Indiana ranked second nationally in the share of total workforce engaged in pharmaceutical manufacturing and third overall in productivity output per pharmaceutical worker. 

About IEDC
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Mitch Roob serves as the chief executive officer of the IEDC.  For more information about IEDC, visit www.iedc.in.gov.

About Evonik
Evonik Industries is the creative industrial group from Germany which operates in three business areas: Chemicals, Energy and Real Estate. Evonik is a global leader in specialty chemicals, an expert in power generation from hard coal and renewable energies, and one of the largest private residential real estate companies in Germany. Our strengths are creativity, specialization, continuous self-renewal, and reliability. Evonik is active in over 100 countries around the world. In its fiscal year 2008 about 41,000 employees generated sales of about Euro 15.9 billion and an operating profit (EBITDA) of more than Euro 2.2 billion.

Disclaimer
In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume any obligation to update the forecasts, expectations or statements contained in this release.

Media Contacts:
Jonathan Evans (Evonik) - 973.541.8106 or jonathan.evans@evonik.com
Blair West (IEDC) - 317.232.8873 or bwest@iedc.in.gov
Lori LeRoy (BioCrossroads) - 317.238.2456 or lleroy@biocrossroads.com