Germany-based Evonik Industries plans to build a plant to produce precipitated silicas in São Paulo, Brazil. The company is investing a mid-double-digit million euro amount; the plant is scheduled to go on stream in 2016. This will be the first production plant for highly dispersible (HD) silica in South America.
This high-growth silica is used mainly for high-quality low rolling resistance tyres. In addition, by building this new silica production plant, Evonik is also catering for the needs of the growing regional business in attractive speciality segments in South America’s food, animal feed, and agricultural industries.
Patrik Wohlhauser, Executive Board Member and Chief Operating Officer of Evonik Industries: “With this investment in Brazil, we are positioning ourselves as an innovative provider of advanced inorganic materials for resource-conserving applications in the important South American market.”
The tyre industry profits from the growth in the automotive industry, which has recorded considerable increases in sales in South America over the past years. The market for low rolling resistance tyres and, consequently, for HD silicas, has been growing much stronger than the market for conventional tyres in South America. Evonik expects additional demand because of the planned labelling of the energy efficiency of tyres in Brazil.
The use of silica in combination with silanes means that tyres can be produced with a much lower rolling resistance, which can reduce fuel consumption by up to 8% (compared to conventional automobile tyres). Consequently, low rolling resistance tyres contribute towards climate protection.
Evonik is expanding its silica capacities throughout the world. By the end of 2014 alone, it will have grown by around 30% compared to 2010. In Chester (USA), a plant for precipitated silica with an annual capacity of about 20,000 tonnes is scheduled to begin operations in 2014. The expansion in North and South America follows expansions that have already been completed in Europe and Asia. A production plant extension was completed in Thailand in March 2014, for example.
Evonik is one of the leading producers of silicas. In addition to precipitated silica, the Group also produces the fumed silica AEROSIL and silica-based matting agents under the ACEMATT brand. In total, Evonik has a worldwide capacity of about 550,000 tonnes of precipitated and fumed silicas and matting agents per annum.