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Cabot Corporation has announced that its wholly-owned subsidiary, Cabot (China) Ltd has signed a joint venture (JV) with Inner Mongolia Hengyecheng Silicone Co Ltd (HYC) to manufacture fumed silica in China. Cabot will hold an 80% share and HYC will own the remaining 20%. The agreement was signed following a ceremony on September 12 at the InterContinental Shanghai Ruijin Hotel.
The JV will invest approximately US$60M to build a world-class fumed silica manufacturing facility to be located in Wuhai, China. The new facility will have a manufacturing capacity of 8000t/yr of fumed silica. Subject to obtaining the necessary governmental and regulatory approvals, construction of the plant is expected to begin in early 2017 and will be completed in 2019. The project will allow Cabot to meet the growing demand for its high-quality, high-performance fumed silica, enabled by a long-term reliable source of feedstock.
"Growing in our core is a key component of our new corporate strategy and today’s announcement is confirmation of our ongoing commitment to this strategy. We are a market leader for fumed silica, and this investment will further strengthen our position in this core market,” said Sean Keohane, President and CEO, Cabot Corporation. "Cabot has achieved tremendous success over the years in China, and we continue to see great opportunities to innovate and support our customers while being a model for sustainable production in China. We are partnered with a leader in HYC and, through this partnership, we will establish a world-class fumed silica production site in China.”
"Through this planned investment, we will be able to further strengthen our market leadership position for fumed silica and promote growth in a variety of industries in China,” said Nick Cross, Executive Vice President and President, Performance Chemicals segment. "This joint venture will provide a catalyst for growth in China and we look forward to serving local customers with high-quality products and solutions, while capturing growth in the rapidly growing sectors of automotive, construction, renewable energy and other industries.”
"We are pleased to partner with an industry leader and innovator, such as Cabot to build this state-of-the-art fumed silica plant,” said Wang Yongquan, Chairman of Zhejiang Zhongcheng Holding Group Co Ltd, parent company of HYC. "Not only will we have access to Cabot’s silica for use in our silicone compounding operation but we also will be able expand production efficiencies through the utilisation of a closed loop system.”
Cabot has had operations in China for almost 30 years and currently operates four manufacturing sites in Shanghai, Xingtai, Jiangxi and Tianjin. The new plant in Wuhai will become Cabot’s seventh fumed silica plant throughout its network in Asia, Europe and the USA.
