Degussa, Wellink Group in silica JV in China

By Liz White, UT staff

Düsseldorf, Germany-Fillers major Degussa AG and Fujian Nanping Xinyuan Investment Co. Ltd (Wellink Group) announced 8 Feb are setting up a joint venture in China to make performance silica (precipitated silica and silicates).

After final approval by the relevant authorities-expected soon said Degussa-the new venture will begin trading as Degussa Wellink Silica (Nanping) Co. Ltd (DWS). Degussa will hold 60 percent and Xinyuan-in which Wellink has pooled its silica activities-will hold 40 percent of the JV.

Degussa said that DWS has three plants in China, and supplies regional customers, mostly in the Chinese rubber industry, with its performance silica. DWS anticipates further growth in the demand in use in silicone rubber and toothpaste, among others. Also, DWS has a research centre at its headquarters location in Nanping, Fujian, "where it develops new products for specific customer needs, a joint statement said.

"With this new joint venture Degussa is further strengthening its position as the world's leading producer of performance silica," claims the German chemicals and fillers group. Degussa also now ranks number one in Asia/Pacific, with eight plants in five countries and total annual capacity of 175 kilotonnes.

Wellink began making performance silica in 1994, and is now market leader in China, the statement said.

Degussa is a major supplier of carbon blacks, performance silica and rubber silanes (three-product system) for the tyre and rubber sectors. The group said it is now also able to offer customers in China a broad range of products from five local factories, supported from three development centres in China.