Cabot China has established a joint venture with Inner Mongolia Hengyecheng Silicone to manufacture fumed silica in China.
Approximately US$60m will be invested in building the fumed silica manufacturing facility in Wuhai, China, which will have a capacity of 8,000 metric tons silica per year.
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.
“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.”
Cabot will hold an 80% share in the joint venture and HYC will own the remaining 20%.
