Evonik plant expansion cost more than doubles to $380 million
Evonik’s Theodore plant expansion has more than doubled in cost to $380 million, but local officials say the company is not seeking any additional tax incentives.
Mason Reed 
The expansion of Evonik Industries’ Theodore plant is seeing a major price surge, with project costs more than doubling since the initial announcement. According to recent reports from 205focus.com, the total investment has climbed to $380 million.
Rising Costs and Project Delays
The German-based chemical giant originally projected the cost of the Theodore expansion at $176.5 million when the project was first announced in 2022. This new $380 million figure represents an increase of over 115%. Attorney Jay Watkins, representing Evonik, informed the Mobile County Commission that a combination of inflation, unexpected design delays, and the rising cost of labor and materials fueled the spike.
Reflecting on the volatility of the construction industry, Mobile County Commission President Connie Hudson noted that budget predictability has become increasingly difficult. "In years past, you pretty much knew what things could cost," Hudson said. "Now, you never know."
Construction Timeline Shift
The expansion, which focuses on building a new facility to produce methyl mercaptan—a vital ingredient for Evonik's MetAmino livestock feed additive—has also faced schedule adjustments. The target opening date has been pushed back from March 31 to November 30, a significant shift from the initial 2024 completion goal.
Tax Incentives Hold Steady
Despite the substantial rise in project costs, Evonik has not sought additional tax incentives. The Mobile County Commission recently approved an amended agreement to account for the revised timeline and budget. Previous incentives, including a $100,000 performance-based grant contingent upon hiring 10 new employees, remain unchanged.
The Mobile Chamber confirmed that, aside from the timeline shift, no new state incentives have been requested. The project originally arrived with a robust support package, including 10-year non-educational property tax and sales/use tax abatements, alongside a $17.6 million state investment credit and $512,000 in AIDT workforce training services. When first unveiled, the project was expected to bring $24 million in new state revenue and $26.8 million in payroll over a 20-year span.
For more background on the project's roots, you can revisit the original 2022 expansion announcement.
