Cabot (China) Ltd., the wholly-owned subsidiary of Cabot Corporation finalized a joint venture agreement with Inner Mongolia Hengyecheng Silicone Co., Ltd (HYC), to manufacture fumed silica in China. Under the agreement, 80 percent shares, in the joint venture will be with Cabot and remaining 20 percent shares will be with Hengyecheng Silicone Co., Ltd.
The new 8.000 metric tons per year capacity world-class fumed silica manufacturing plant with an investment of about $60 million will be located in Wuhai, China. Construction of the new plant is scheduled to begin in early 2017 and will complete by 2019.
“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 chief executive officer, 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.”
“Through this planned investment, we will be able to further strengthen our market leadership position for fumed silica and promote growth in a variety of industries in China,” said Nick Cross, executive vice president and president, Performance Chemicals segment.
Cabot has been operating in China for about 30 years.The new plant in Wuhai will become Cabot’s seventh fumed silica plant in Asia, Europe, and the United States.Cabot Corporation is headquartered in Boston, Massachusetts and is the leading provider of rubber and specialty carbons, activated carbon, inkjet colorants, cesium formate drilling fluids, fumed silica and aerogel.