GOOSE CREEK, S.C.—Evonik Industries A.G. broke ground on a major expansion project to increase production capacity for precipitated silica in Charleston, S.C.
The investment will increase the site's production capacity by 50 percent to meet the increasing demand from the tire industry, particularly for green tires in the U.S., Evonik said Oct. 1.
The German chemicals group said it had been "meticulously preparing" for the long-term investment in North America, which it said is "a crucial growth region" for the group.
The investment, it added, is driven by "strong customer and market pull, positive engineering updates, and robust support from site partners and local authorities."
With this expansion, Evonik expects the Charleston site to become "a key hub for sustainable silica products in North America," said Lauren Kjeldsen, head of the smart materials division, which includes the silica business.
Evonik did not disclose the size of the investment, but has previously stated it is investing a "mid-double-digit million-euro amount." And the South Carolina Department of Commerce said its affiliate Berkeley County Economic Development had awarded a $500,000 grant to assist the group with the costs.
According to the South Carolina agency, the project will result in "at least $120 million of new capital investment and the creation of more than 50 jobs."
The expansion will enhance local supply chains for the tire industry and introduce circular raw materials to manufacture Ultrasil Silica.
The Charleston facilities, which have been producing precipitated silica since 2018, are part of a network of 18 precipitated silica production sites currently operated by Evonik globally.