Cabot Corporation breaks ground on new fumed silica facility in China

Cabot Corporation and joint venture partner Inner Mongolia Hengyecheng Silicone Co Ltd (HYC) have broken ground on their new fumed silica manufacturing facility in Wuhai, China.

The project, announced in September 2016, 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$60M 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.

"Today is a momentous day for all of us as we break ground on this important expansion that will allow us to grow our manufacturing capabilities to meet the growing needs of our customers,” said Sean Keohane, President and CEO, Cabot Corporation. "We would like to thank our partners HYC and the Wuhai Municipality for their support and we look forward to becoming a part of this community and contributing to it.”

The new facility will have a manufacturing capacity of 8000t/yr of fumed silica. Cabot’s latest technological advances will be incorporated in the plant design and operations. These technologies will enhance Cabot’s leadership position in the industry, while promoting an industry standard in energy efficiency and recycling of by-product streams.

"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,” Keohane continued. "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. "Furthermore, we are committed to consistently delivering the highest quality products and customer service, while practicing and promoting Responsible Care. We have been a dedicated leader, promoter and practitioner of Responsible Care in China and our new world-class fumed silica production site will serve as an example of sustainable development in Wuhai.”

"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.