Qemetica highlights growing importance of tire silicas business

Warsaw – Polish chemicals and materials group Qemetica has identified its recently acquired precipitated silicas unit as a key driver for future growth – as the crisis in the EU chemicals industry takes an increasing toll on its established operations.

Qemetica highlighted the importance of the silicas acquisition from PPG last November (ERJ report) in an announcement that it had started preparations to mothball a major soda plant in Janikowo, Poland by 31 July.

Qemetica linked the shutdown decision “to high energy costs resulting from EU carbon emission allowance prices, which are undermining the competitiveness of the industry.”

Citing unfair competition from outside the EU, the group said Turkish soda – produced using Russian coal and gas – had displaced European manufacturers and captured 30% of the Polish market.

Meanwhile, EU environmental regulations continue to “restrict European businesses, while Turkey and the USA remain exempt from such constraints,” added Qemetica.

The crisis in the European chemical industry is driving Qemetica to diversify its operations and invest outside the EU, according to Kamil Majczak, president of the group’s board.

"We must explore new growth avenues to reduce our dependence on unpredictable regulations and crises in the European market,” commented Majczak.

In particular, he said, the acquisition of the PPG silicas business in the US has strengthened the company’s position in the global market and facilitated expansion into new chemical industry sectors.

“Precipitated silica is one of the key directions, allowing us to offer advanced technologies to international corporations, such as for the production of modern, eco-friendly tires. This enhances our resilience to market fluctuations," concluded Majczak.