Evonik expands fumed silica business

SHANGHAI—Evonik Industries A.G. and the China Wynca Group (Zhejiang Xinan Chemical Industrial Group) have entered a 60-40 joint venture agreement to manufacture fumed silica marketed under Evonik's Aerosil brand name.

As part of the agreement, Evonik Wynca (Zhenjiang) Silicon Material Co. will invest an amount in the "mid double-digit million Euro" range in building a fumed silica production facility in the Zhenjiang New Material Industry Park, in Jiangsu province, north of Shanghai.

The 8,000-metric tons per year facility is expected to be operational in 2021.

This is Evonik's second fumed silica production-related investment in less than a month.

At the end of July, the Essen, Germany-based company announced it was expanding its fumed silica capacities at its production site in Antwerp, Belgium. Evonik said it will be investing an amount in the upper double-digit million Euro range in the project, which is scheduled to start operation next summer.

Additionally, the company purchased JM Huber Corp's silica business in the U.S. in a $630 million deal last September, as part of its new strategic focus on "smart materials."

"We are now taking the next step with the first fumed silica plant in the attractive Chinese market," said Harald Schwager, deputy chairman of the executive board of Evonik.

While the JV will supplement Evonik's fumed silica production facility, Wynca aims to further expand its business with silicon-based products.

The Chinese group has currently formed a complete organic silicon industry chain, which includes smelting cores, ganister sand processing and monomer synthesis to the final products.

The company is currently expanding its capacity for organochloro-silanes which is a raw material used in the production of Aerosil, to 300 metric tons per annum. A small part of this capacity expansion will supply the joint venture.

The joint venture plant is expected to further improve the integrated production structure of Wynca Zhengjiang site.

According to Tao Wei, vice president of Wynca Group, all the intermediate products, such as monomethyltrichlorosilane, chlorosilane from Wynca and by-product of hydrochloric acid from the JV, will be fully utilized at the Wynca Zhenjiang Site.

Evonik expects the production base in China to 'significantly shorten' delivery times in the growing Asian market.

"Asia, especially China is a key growth region for Evonik. The new joint venture proves that Evonik is committed to grow our business in China by continuous investment and cooperation with local partners," noted Claas Klasen, president of Evonik's Asia-Pacific North region.

Fumed silica is used in transparent silicones, coatings and paints, modern adhesives as well as non-combustible high-performance insulation materials.

According to Evonik, the global market for fumed silica is growing at around 5 percent, showing stronger growth than the global economy.

Key drivers for the fumed silica market in China include the silicone industry for adhesives and sealants in buildings and cars as well as gel batteries such as those used in electric bikes.