Cabot JV to build fumed silica plant in China

Boston, Massachusetts – Cabot Corp is to form a joint venture (JV) with Inner Mongolia Hengyecheng Silicone Co., Ltd (HYC), to manufacture fumed silica in China, cabot announced 12 Sept.

The US chemicals company will hold an 80-percent share in the JV while HYC will own the remaining 20 percent.

The JV will invest $60 million (€53.5 million) to build a silica manufacturing facility in Wuhai, China, with a capacity of 8,000 tonnes per annum of fumed silica.

Construction of the plant is expected to begin in early 2017 and will be completed in 2019, said Cabot.

“We are a market leader for fumed silica, and this investment will further strengthen our position in this core market,” said Sean Keohane, president and chief executive officer, Cabot Corp.

According to executive vice president and president of Cabot performance chemicals unit, Nick Cross, the new plant will support “rapidly growing sectors of automotive, construction, renewable energy and other industries.”

Zhejiang Zhongcheng Holding Group Co., Ltd, parent company of HYC added that it expected the output to be used in its own silicone compounding operations, helping it achieve better efficiency through a “closed loop system”.

Fumed silica is a collection of very-fine non-porous particles that increase the performance of many applications, including silicones elastomers, adhesives, toners, composites and coatings.