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.
Chloe Mitchell 
The expansion of Evonik Industries’ Theodore plant is facing a significant financial shift. The cost for the major construction project has more than doubled, jumping to $380 million from the original $176.5 million estimate established back in 2022. Despite this 115% cost surge, company representatives confirmed that they are not seeking any additional tax incentives.
Rising Costs and Construction Delays
Evonik attorney Jay Watkins updated the Mobile County Commission on the project's status last week, citing a mix of inflation, design hurdles, and increasing expenses for labor and materials. When first announced in 2022, the expansion was slated to be finished by 2024, but the timeline has been pushed back to a new projected completion date of November 30.
Mobile County Commission President Connie Hudson acknowledged the challenges facing the company, noting that economic volatility has made project budgeting increasingly difficult. “The costs are volatile,” Hudson stated. “In years past, you pretty much knew what things could cost. You would get estimates, and they were right on target. Now, you never know.”
Project Scope and Incentives
The expansion is designed to build a new facility capable of producing methyl mercaptan, an essential component of Evonik’s MetAmino (DL-methionine) livestock feed additive. Although the project’s scope and timeline have been amended, requiring a formal vote from the Mobile County Commission, the existing incentive package remains unchanged.
According to the Mobile Chamber, previous incentives for the project include:
- A $100,000 performance-based incentive from the county, contingent on the plant becoming operational and hiring 10 new employees.
- Ten-year non-educational property tax and sales/use tax abatements, valued at $14 million and $10.1 million respectively.
- A $17.6 million state investment credit over 10 years and $512,000 in AIDT workforce training services awarded in 2022.
Denise Curtis of the Mobile Chamber confirmed that Evonik has not requested any extra state support despite the budget inflation. When the expansion was first introduced, it was projected to generate $24 million in new state revenue and $26.8 million in total new payroll over a 20-year period.
