Chinese silica major Quecheng Silicon to build 100ktpa rice silica plant

Shanghai, China – Chinese silica materials supplier Quencheng Silicon Chemical has announced a Yuan900 million (€107 million) investment plan to produce rice-based silica for rubber applications.

In a 22 July filing with the Shanghai Stock Exchange, the Wuxi-headquartered company said the project involves the construction of a plant to produce 100 kilotonnes per annum (ktpa) of rice husk silica, to be completed in two 50ktpa phases.

Furthermore, the investment will see the addition of a 30.2 ktpa unit for the production of rubber thickening agents, said the SSE filing.

To be based in the ‘coastal industrial park of Jiangsu Binhai economic development zone’, the total planned investment will be funded through ‘self-owned or self-raised’ sources, said the company.

The rice silica plant, with an estimated investment of Yuan700 million, will include R&D, production and sales functions and is expected to be completed in 24 months.

The thickening agent project, with a cost of Yuan200 million, is projected to be completed in 18 months.

“The construction of these investment projects will… expand [operations] into new business segments, diversify product offerings, strengthen core business,” said the SSE filing.

The move will further enhance Quecheng’s overall operational and market competitiveness, and promote “high-quality, sustainable development,” the company added.

Quencheng, which is claimed to be “third largest silica manufacturer” announced plans in 2018 to invest €105 million in a 90ktpa green silica plant in Fos-sur-Mer, Province, France.

The plan, however, was dropped in 2022 due to the “geopolitical development in Europe,” amid the ongoing Russian war against Ukraine and post-Covid slowdown.