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Evonik Industries AG

12/10/2019 | Press release | Distributed by Public on 12/09/2019 23:27

Evonik and Wynca celebrate the groundbreaking of a new fumed silica plant in Zhenjiang

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Press release
China
December 10, 2019

Evonik and Wynca celebrate the groundbreaking of a new fumed silica plant in Zhenjiang

  • First AEROSIL® fumed silica production facility in China begins construction
  • Investment amount in the mid double-digit million Euro range
  • Completion of facility scheduled in 2021 with an annual output of 9,000 metric tons

The joint venture between Evonik and the Chinese company Wynca - Evonik Wynca (Zhenjiang) Silicon Material Co., Ltd. has officially started the construction on a new fumed silica plant in Zhenjiang, Jiangsu Province, China. Together with the business partners, representatives from local government and media, Evonik and Wynca took part in a ground-breaking ceremony on December 10th in the Zhenjiang New Material Industry Park. Scheduled to become operational in 2021 with a projected annual output of 9,000 metric tons, the new plant will produce fumed silica marketed under the name AEROSIL®, in order to fulfil the market demand for silicones, coatings and paints, modern adhesives and gel batteries in China.

'As a kind of Smart Materials, silica belongs to one of the four strategic growth engines identified by Evonik because of its rapid market growth and extensive applications. As our first fumed silica plant in China, the new plant in Zhenjiang will further improve the global production network of AEROSIL® and ensure a more solid supply for Chinese customers,' said Andreas Fischer, board member of Evonik Resource Efficiency GmbH at the groundbreaking ceremony.

'As leaders in different industries, Evonik and Wynca have a lot in common and are highly complementary in strategic concepts. Forming a high-end fumed silica project in Zhenjiang New Material Park through this strong alliance is in line with the business strategies of both sides.' says Jianhua Wu, Chairman of the Wynca Group.

The joint venture will combine Evonik's advanced product technology with the leading local silicone industry value chain formed by Wynca, building a production facility for high valued AEROSIL® fumed silica products by utilizing chlorosilanes from Wynca. Meanwhile, the by-product hydrochloric acid will also be fully utilized as a raw material for Wynca Zhenjiang Site. This integrated production loop is expected to make full use of by-products from each side and achieve perfect resource recycling and synergies among organic silicon monomer, chlorosilane and fumed silica production.

'Evonik regards Asia, especially China, as an important growth region. China is currently undergoing an overall industrial transformation and upgrade. These changes will generate significant market opportunities for Evonik. The establishment of the new plant will further expand our business presence in China's fumed silica market. Meanwhile, it's also our pleasure to work closely with Wynca as our strong local partner, and to jointly explore this attractive market,' emphasized Dr. Claas Klasen, President of Evonik's Asia Pacific North region.

Fumed silica is an important high-tech nanomaterial with an annual market growth above GDP on a global basis. China is among the countries with the fastest growing market size and demand for fumed silica. Key drivers for this market in China include the silicone industry for adhesives and sealants in buildings and cars as well as gel batteries.

Evonik is a leading global manufacturer of silica. In addition to the fumed silica AEROSIL® and the precipitated silica ULTRASIL®, SIPERNAT®, ZEODENT® and SPHERILEX®, Evonik also produces silica based matting agents under the brand name ACEMATT® and other fumed metal oxides under the brand AEROXIDE®. Overall, Evonik has a global production capacity for all silica-based products of about 1 million metric tons per year.

About Evonik

Evonik is one of the world leaders in specialty chemicals. The focus on more specialty businesses, customer-oriented innovative prowess and a trustful and performance-oriented corporate culture form the heart of Evonik's corporate strategy. They are the lever for profitable growth and a sustained increase in the value of the company. Evonik benefits specifically from its customer proximity and leading market positions. Evonik is active in over 100 countries around the world. In fiscal 2018, the enterprise with more than 32,000 employees generated sales of €13.3 billion and an operating profit (adjusted EBITDA) of €2.15 billion from continuing operations.

Evonik's international activities are organized into six regions. The Asia Pacific North region is headquartered in Shanghai. Sales in Asia Pacific North reached €1.97 billion in 2018. Evonik regards China as one of the driving forces of the global economy and we consequently endeavor to grow our business here. The company now employs over 2,500 employees and has in total of 10 production sites in China.

About Wynca

Located in Hangzhou, China, the Wynca group was founded in 1965 and listed in the Shanghai Stock Exchange in Sep. 2001. As one of the top 500 Chinese chemicals company and one of the top 20 global enterprises in agricultural chemistry, Wynca's main businesses are crop protection products and organic silicon materials. Wynca is selected as the Most Valuable Listed Companies in China for many years continuously.

With the advanced recycling technology for chlorine, phosphorus and silicon, Wynca is a pioneer of circular economy in the industry. The company covers the whole value chain in the organic silicon industry and focuses on developing downstream segments. The products of Wynca are widely applied in agriculture, biotechnology, aeronautics & astronautics, health care, building materials, electronic & electric industry, as well as new energy industry. Wynca has subsidiaries in North America, South America and Africa and markets its products in many countries in the world.

Disclaimer

In so far as forecasts or expectations are expressed in this press release or where our statements concern the future, these forecasts, expectations or statements may involve known or unknown risks and uncertainties. Actual results or developments may vary, depending on changes in the operating environment. Neither Evonik Industries AG nor its group companies assume an obligation to update the forecasts, expectations or statements contained in this release.