Evonik to build silica plant in Brazil

ERJ staff report (PR)

Essen, Germany - Evonik Industries has announced plans to build a precipitated silicas plant in São Paulo, Brazil: investing a “mid-double-digit million euro amount” in the project, which is scheduled to go on stream in 2016.

This will be the first production plant for highly dispersible silica in South America and will mainly supply products for low rolling resistance tires, according to a 21 July company announcement.

The move responds to growth in the automotive industry in South America over the past years and increasing demand for low rolling resistance tires in the region. Evonik said it expects additional demand because of the planned labelling of the energy efficiency of tires in Brazil.

"With this investment in Brazil, we are positioning ourselves as an innovative provider of advanced inorganic materials for resource-conserving applications in the important South American market," claimed Patrik Wohlhauser, executive board member and chief operating officer of Evonik Industries.

Evonik is expanding its silica capacities worldwide. By the end of 2014, its capacity will have grown by around 30 percent compared to 2010. This includes a 20 kilotonnes per annum (ktpa) precipitated silica plant in Chester, US, which is due for start-up later this year, and a plant extension completed in Thailand in March.

In total, Evonik said it has a worldwide capacity of about 550ktpa of precipitated and fumed silicas and matting agents.