News from Notch Consulting, Inc.

May 14, 2013

Evonik announces new silica plant in Brazil

Filed under: Silica — Notch @ 10:52 am

On May 10, 2013, Evonik Industries announced plans to build a new precipitated silica plant in Americana, Brazil by the end of 2015. The cost of the plant is in the “middle double-digit million-euro range,” according to Evonik. The plant’s capacity was not released, though the new plant is part of a larger expansion plant that will raise Evonik’s total silica capacity by 30% from 2010 levels. Evonik Industries has started basic engineering for the plant, which is subject to the approval of the responsible bodies. The plant will be Evonik’s first slica plant in South America. Evonik’s silica is marketed under the ULTRASIL® brand name for energy-saving tires with low rolling resistance while SIPERNAT® grades are used in the feed and food industry as well as the paints and coatings industry.

According to Evonik, in South America, and in Brazil in particular, demand for precipitated silica is rising due to significant growth of the local automotive industry, on the one hand, and a rising demand in the area of life-science and in agriculture, on the other, for example as a dosing aid for animal feed. “In our expansion course, we aim to accompany the growth of our global key customers, particularly in the tire industry,” says Dr. Thomas Haeberle, member of the Evonik Executive Board and responsible for the company’s Resource Efficiency Segment. Evonik expects additional demand due to a planned labeling obligation for fuel-saving tires in Brazil.

Here is the full press release.

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