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On October 14, Winneway Xinan (Zhenjiang) Silicon Materials Co., Ltd., jointly established by Evonik Industries and Zhejiang Xinan Chemical Group Co., Ltd. of China, announced that its silica gel factory located in the New Materials Industrial Park in Zhenjiang City, Jiangsu Province, has officially commenced operations. The new factory is Evonik’s first production facility for fumed silica in China, and it will manufacture fumed silica products under the AEROSIL® brand. More than 150 employees, partners, ** and media representatives from Evonik and Xinan attended the factory opening celebration. Vapor-phase silica is an important functional powder material with properties such as thickening, thixotropy, anti-settling, and matting effects; it is widely used in industrial fields such as silicone rubber, coatings, adhesives, and sealants. Currently, the demand for fumed silica in the Chinese market is growing steadily. Evonik is a global leader in silica suppliers, with its products used in numerous high-growth markets. The joint venture factory will combine Evonik’s product technologies with Xinan’s silicon material industry chain, and make use of the monomer by-products methyltrichlorosilane and chlorosilanes from Xinan to produce high-value-added fumed silica products. At the same time, the hydrochloric acid produced as a by-product during the manufacturing process will also be effectively utilized as a raw material for Zhenjiang Jiangnan Chemical Co., Ltd., a wholly-owned subsidiary of Xinan Group. This enables the synergistic effect of balancing the resources of silicone monomers, chlorosilanes, and fumed silica, thereby achieving a circular economy. Through the newly commissioned joint venture factory, Evonik will also further establish a comprehensive global supply chain for fumed silica for customers in China and Asia. Dr. Claudine Mollenkopf, head of Evonik’s silica business unit, said: “I am very pleased to see the partnership between Evonik and its Chinese partner, Xinan Group.” The joint venture factory will serve as a valuable addition to Evonik’s global business structure in the field of fumed silica. By leveraging the professional expertise of both parties in the field of silicon materials, we will achieve a win-win outcome. ” Wu Jianhua, chairman of Xinan Group, said, “Through this strong partnership with Evonik, the two parties will achieve integration and complementarity in the supply chain for fumed silica as well as in the recycling of material resources, thereby optimizing the value chain and providing high-quality services and products to customers in China and Asia.” ” It is reported that this project was initiated in 2018 when Evonik Degussa (China) Investment Co., Ltd. and Zhejiang Xinan Chemical Group reached an agreement to jointly establish Winnew Xinan (Zhenjiang) Silicon Materials Co., Ltd., aimed at producing and selling silica produced by the vapor phase method. Located in Zhenjiang, Jiangsu Province, this project has a total investment of 470 million yuan. Construction began in December 2019, and it is expected to result in a production facility covering an area of over 27,000 square meters, with an annual production capacity of 9,000 tons. The project is Evonik’s first silica gel project in China, and it is also the project in the domestic silica gel market in which Chinese companies hold the highest share of ownership. The global fumed silica market is primarily dominated by foreign companies such as Cabot, Wacker, Evonik, and Tosoh Chemical. With the rapid growth of China’s vapor-phase silica market, the other three international giants have entered this market in China through joint ventures. In 2019, a world-class vapor-phase silica production facility was put into operation as a result of a joint venture between Cabot and Inner Mongolia Hengye Cheng Silicone Co., Ltd.; the facility has an annual production capacity of 8,000 tons, with Cabot holding 80% of the shares ； It is reported that Cabot Blue Star Chemicals (Jiangxi) Co., Ltd. has an annual production capacity of more than 20,000 tons of fumed silica, making it the largest domestic and world-class producer of this substance. In addition, Cabot has factories in Tianjin and Xingtai that produce fumed silica. As early as 2011, Dow Corning and Wacker Chemie AG completed the expansion of Phase II in Zhangjiagang, raising the annual production capacity of the silicone plant and the fumed silica plant (including Phase II) to 210,000 tons. Nippon Tokuyama Chemical operates a facility in the Zhapu Economic Development Zone of Jiaxing Port Area, Zhejiang Province, covering an area of 225 mu. It invested $112.9 million in building this plant, which currently produces around 10,000 tons of fumed silica per year. The implementation in China of this project in which Xinan Group has invested also means that all four major global producers of fumed silica are now present in China. The commissioning of this new project will help enhance Xinan Group’s position within the industry.