Evonik, GCL plan JV to build silica plant in China

ERJ staff report (PR)

Evonik Industries and Jiangsu Zhongneng Polysilicon Technology Development Co. Ltd, part of GCL-Poly Energy Holdings Ltd, are to establish a joint venture for the production of fumed silica and ‘ultra-pure’ silicon tetrachloride in China.

Evonik will hold a 60-percent stake in the JV, which will establish plants with an annual capacity of over 20,000 tonnes in Xuzhou, Jiangsu Province, for start-up in 2016. The project, though, is subject to board approvals.

GCL-Poly, which is listed on the Hong Kong stock exchange, specialises in the generation of green and conventional energy, while subsidiary Jiangsu Zhongneng is a manufacturer of polycrystalline silicon (PCS).

 The JV will purchase silicon tetrachloride - a by-product of PCS production - to produce fumed silica and ‘ultra-pure’ silicon tetrachloride.

“By making the planned investment we are aiming to further strengthen our market position for fumed silica and ultra-pure silicon tetrachloride and to promote growth, particularly in the attractive Chinese market,” said Klaus Engel, CEO of Evonik Industries.

The main drivers for fumed silica demand in China include the silicone industry for adhesives and sealants in buildings and vehicles. As well as fumed silica, Evonik also produces precipitated silica for tires with low rolling resistance.