Evonik Industries has started basic engineering for a production plant for precipitated silica in Brazil. Subject to the approval of the responsible bodies, Evonik aims to complete the plant in the year 2015 to market precipitated silica in the South America region from local production.

The planned facility in Americana, with an investment level in the middle double-digit million-euro range, would be Evonik's first silica production in South America. The silica marketed under the Ultrasil brand name is particularly used in energy-saving tires with low rolling resistance while the silica sold as Sipernat is applied in the feed and food industry as well as the paints and coatings industry.

According to expert estimates, the market for tires with low rolling resistance will grow globally by a good 18% annually in the next five years. Evonik therefore wants to significantly expand its global silica capacities: By 2014 alone, capacities are planned to increase by around 30% compared to 2010.

In line with this, at the end of 2012, the specialty chemicals company announced plans to expand its annual capacity for precipitated silica at the US-American Chester site by around 20,000 metric tons. The plant in the U.S., with an investment in the lower double-digit million-euro range, is planned to come on stream in 2014. The expansion planned in North and South America follows expansion projects in Asia and Europe.