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Evonik to set up $ 120-mn precipitated silica plant in US

With the new plant, the company aims to meet the growing demand for precipitated silica, a key ingredient in making energy-efficient tyres, in North America

Precipitated silica
Precipitated silica
BS B2B Bureau South Carolina, USA
Last Updated : Dec 15 2016 | 1:30 PM IST
German specialty chemicals maker Evonik Industries will invest $ 120 million to set up a production plant for precipitated silica at Charleston (South Carolina) in the US to supply the tyre industry. The industry needs high-quality precipitated silica for producing fuel-efficient tyres with good wet grip properties, which can save up to eight percent fuel in comparison to conventional car tyres. 

In North America, the demand for tyres with reduced rolling resistance and the associated higher fuel efficiency is experiencing above-average growth. Evonik is building the new plant, scheduled for completion in 2018, close to the production plants of large tyre manufacturers. 

The investment in the new facility follows acquisition of Huber Silica by Evonik for $ 630 million. With Huber Silica, Evonik intends to acquire a business that is specialised in applications in the consumer industry such as in the dental area.

“The investment is an important part of our strategy to expand our position as a global partner for the automotive supplier industry. With the construction of the plant in the Southeastern United States and the planned acquisition of the silica business of Huber, we are strengthening our Resource Efficiency growth segment and are extending our leading market positon as a silica provider,” commented Klaus Engel, chairman of the executive board of Evonik Industries AG.

The use of silica in combination with silanes allows for manufacturing tyres with significantly reduced rolling resistance that save fuel (compared to conventional car tyres). Green tyres therefore contribute to climate protection. Evonik is the only manufacturer to offer both components, making it a competent partner for high-performance tyre formulations for customers in the tire and rubber industries.    
   
Evonik is one of the leading silica manufacturers. In addition to the precipitated silica Ultrasil and Sipernat, the group also manufactures the fumed silica Aerosil and matting agents made from silica under the brand name Acematt. Overall, the company’s global annual production capacity for precipitated and fumed silica as well as matting agents is around 600,000 metric tonnes. 

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First Published: Dec 15 2016 | 1:27 PM IST

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