International. Evonik Industries and Chinese company Wynca have agreed to form a joint venture. The new company, in which Evonik will have a 60 percent, will produce pyrogenic silica marketed under the name Aerosil.
The product is used in transparent silicones, paints and coatings, modern adhesives and high-performance non-combustible insulating materials.
The joint venture, Evonik Wynca (Zhenjiang) Silicon Material Co., Ltd., plans to build a smoked silica production plant in the new Zhenjiang Industrial Park (Jiangsu Province, China), investing an amount in the double-digit million euros. Distance. The facility, with a projected annual production of 8,000 metric tons, is scheduled to begin operations in 2021. The overall project still requires the approval of the relevant corporate bodies and competent authorities.
Evonik explained that the global pyrogenic silica market is growing around 5%, showing stronger growth than the global economy. Major drivers for the pyrogenic silica market in China include the silicone industry for adhesives and sealants in buildings and automobiles, as well as gel batteries such as those used in electric bicycles.
The joint venture will complement Evonik's global network of Aerosil's production facility, while Wynca plans to further expand its business with silicon-based products, using the benefits of a shared approach.
"With the joint venture, we are constantly strengthening our Resource Efficiency segment. Following the acquisition of Huber's silica business and the associated expansion of our precipitated silica capabilities, as well as the growth of our smoked silica capabilities in Antwerp, we are now taking the next step with the first pyrogenic silica plant in the attractive Chinese market. Wynca is a strong partner to do this and we look forward to future cooperation," said Harald Schwager, Vice Chairman of the Board of Directors of Evonik Industries.
Precipitated and smoked silicas are among the company's "Smart Materials," one of four strategic growth drivers identified by Evonik for above-average market growth and potential margin.
