Evonik and GCL plan plants for silicone compounds in China

Evonik Industries and Jiangsu Zhongneng Polysilicon Technology Development Co Ltd, a wholly owned subsidiary of GCL-Poly Energy Holdings Limited, have signed a letter of intent to establish a joint venture (JV) for the production of fumed silica and ultra-pure silicone tetrachloride in China.
Evonik will hold a 60% share in the JV. The plants, which will have a capacity of more than 20,000t/yr, will be built in Xuzhou (Jiangsu Province, China) and are scheduled to start-up operation in 2016. The entire project has yet to be approved by the executive bodies.
As a listed company on the Hong Kong Stock Exchange, GCL-Poly specialises in the generation of green and conventional energy. Jiangsu Zhongneng, a wholly owned subsidiary of GCL-Poly, is a global leading manufacturer of polycrystalline silicone (PCS).
Silicone tetrachloride is a byproduct of PCS production and the JV will purchase this to produce Aerosil fumed silica and Siridion STC HP ultra-pure silicone tetrachloride.
The main drivers of the positive market development for Aerosil fumed silica in China are the silicone industry for adhesives and sealants in buildings and vehicles, as well as gel batteries, used in e-bikes, for example. Ultra-pure silicone tetrachloride, marketed under the Siridion STC HP brand name, is used in the fibre optics needed to expand China’s communications and IT infrastructure and half of the demand for fibre optics worldwide now comes from China.