Global specialty chemicals company Cabot Corporation and its joint venture partner Inner Mongolia Hengyecheng Silicone Co., Ltd (HYC) has broken ground on the site of its new fumed silica manufacturing plant in Wuhai, China.
Announced in September 2016, the facility is scheduled to be completed in 2019, and will further Cabot’s position as a leading producer of fumed silica.
Cabot and HYC are investing approximately US$60 million to build a world-class fumed silica manufacturing facility, with Cabot owning an 80% equity interest. In this mutually beneficial relationship, Cabot brings advanced fumed silica production technology and a strong leadership position in the rapidly growing region while HYC provides a long-term reliable source of feedstock.
CAB-O-SIL fumed silica is a key ingredient in a variety of applications, including silicone elastomers, composites, adhesives, coatings, energy storage and consumer goods. Cabot’s fumed silica production technology ensures a high-performing and consistent fumed silica product that helps customers advance solutions in growth markets such as automotive, construction and renewable energy.
The new facility will have a manufacturing capacity of 8,000 metric tonnes of fumed silica per year. Cabot’s latest technological advances will be incorporated in the plant design and operations.
“This investment is an important milestone in our corporate strategy to extend our leadership in performance materials by investing for growth in our core businesses,” said Sean Keohane, president and chief executive officer, Cabot Corporation. “We are proud of our industry and technology leadership in China, and this project further demonstrates our long-term commitment to this important core market.”
“Our new facility will allow us to better serve our customers in parts of China where we expect to see significant growth and development in the coming years. At the same time, it will enable us to strengthen our overall production capacity to keep pace with growing global demand,” said Nick Cross, executive vice president and president, Performance Chemicals segment.
“We are very glad to establish this partnership with Cabot. We will provide all-around support for the construction and operation of the new plant,” said Wang Yongquan, Chairman of Zhejiang Zhongcheng Holding Group Co., Ltd, parent company of HYC. “HYC will work closely with Cabot to produce high quality silicone downstream products, in order to meet the growing demands of the Chinese market.”
Cabot has operated in China for nearly 30 years, and currently operates manufacturing sites in Shanghai, Xingtai, Jiangxi and Tianjin.