German specialty chemicals Evonik Industries and Chinese polycrystalline silicon (PCS) manufacturer Jiangsu Zhongneng Polysilicon Technology Development, signed a letter of intent to form a joint venture for the production of fumed silica and ultra-pure silicon tetrachloride in China. Evonik, a leading manufacturer of silica and ultra-pure silicon tetrachloride, will hold a 60% share in the joint venture.
The plants, which will have an annual capacity of over 20,000 metric tonnes, will be built in Xuzhou (Jiangsu Province, China) and are scheduled to start-up
operation in 2016. The entire project has yet to be approved by the
executive bodies.
GCL-Poly. Jiangsu Zhongneng is a wholly owned subsidiary of GCL-Poly, which specialises in the generation of green and conventional energy.
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.
According to Klaus Engel, CEO of Evonik Industries, the cooperation can combine Evonik’s advanced technologies of producing silica and ultra-pure silicon tetrachloride with Jiangsu Zhongneng’s leading technologies of silicon material production.
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 fibre 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 fibre optics worldwide now comes from China.