Silica and synthetic gypsum manufacturer Tosoh Silica Corporation, a wholly-owned subsidiary of Tosoh Corporation, recently decided to establish a joint venture company with South Korean-based Namhae Chemical Corporation. The new company is named Tosoh Namhae Silica Corporation and is to cover the production and sales of silica for fuel-efficient tyres; it is located in Jeolla Province, South Korea. Tosoh Silica holds the majority ownership of the new company at 67% while Namhae Chemical holds the remaining 33%.
Tosoh Silica will cultivate the production base in South Korea with its advanced technological capabilities, to satisfy robust demand, ensure a stable supply of products, and strengthen the profitability of the business.
In the near future, demand for silica for fuel-efficient tyres is expected to increase in line with a continued reduction in automotive fuel consumption as well as a shift towards vehicle electrification. Silica has shown superior effectiveness in improving tyre performance such as reducing rolling resistance, which leads to enhanced automotive fuel economy.