DUSSELDORF, Germany (Nov. 21) — Carbon black and silanes producer Degussa A.G. is setting up a joint venture in China to make sulfur-functional silanes for rubber applications.
The new venture, Degussa Lanxing (Rizhao) Chemical Industrial Co. Ltd., in Rizhao City/Shandong Province, China, will produce silanes for the firm´s tire and rubber product customers throughout Asia and Pacific Rim. Degussa cited growing demand for fuel-efficient car tires and China´s growing vehicle parc and road network for the reasons behind its decision, according to Robert Wissner, head of Degussa´s Advanced Fillers & Pigments business unit.
Degussa will own 50 percent of the new company, with Rizhao Lanxing Chemical Industry Co. Ltd. holding 40 percent and a financial investor the remaining 10 percent, Degussa said. The firm will produce sulfur-functional silanes in liquid form and as a blend with carbon black.
Financial details of the deal, which awaits approval by the responsible agencies, were not disclosed. Degussa and Rizhao Lanxing have been negotiating the deal since July.
Lanxing has produced silanes for the Chinese market since 1998, Degussa said. Besides being used to aid silica reinforcement of rubber used in tires, silanes are used to make high-quality rubber compounds for use in technical rubber articles and sports shoes.
Degussa already makes silanes at plants in Europe and the U.S. Degussa already has 20 companies in China, making the firm´s broad spectrum of products, including carbon blacks and polyurethane foam additives.