Sillica and Silicones Evonik Joins Chinese Silica Joint Venture
Evonik and Jiangsu Zhongneng Polysilicon Technology Development (a subsidiary of GCL-Poly Energy) have formed a joint venture for the production of fumed silica and ultra-pure silicon tetrachloride in China. Together, both partners will build a 20,000 metric tons of production capacity in China.
Xuzhou/PR China – In this joint–venture, Evonik will hold a 60% share. 20,000 tons/year production capacities are planned at Xuzhou (Jiangsu Province, PR China), scheduled to start-up operation in 2016.
GCL-Poly specializes in the generation of green and conventional energy. Jiangsu Zhongneng, a wholly owned subsidiary of GCL-Poly, is a global leading manufacturer of polycrystalline silicon (PCS). Silicon tetrachloride is a byproduct of PCS production, and the joint venture will purchase this to produce Aerosil fumed silica and Siridion STC HP ultra-pure silicon tetrachloride.
Growing Market for Silica in China
"By making the planned investment we are aiming to further strengthen our market position for fumed silica and ultra-pure silicon tetrachloride and to promote growth, particularly in the attractive Chinese market,” said Klaus Engel, CEO of Evonik Industries. “In GCL we have found a strong partner for this.”
The main drivers of the positive market development for Aerosil fumed silica in China are the silicone industry for adhesives and sealants in buildings and vehicles as well as gel batteries, used in e-bikes, for example. Ultra-pure silicon tetrachloride, marketed under the Siridion STC HP brand name, is used in the fiber optics needed to expand China’s communications and IT infrastructure. The growth rate for ultra-pure silicon tetrachloride in China is well above the growth rate for the global market. Half of the demand for fiber optics worldwide now comes from China.