Germany’s Evonik has announced it will build a production plant for precipitated silica at Charleston, South Carolina, USA to supply the tire industry with the product used to manufacture fuel efficient tires. Demand for tires with good wet grip properties, which are claimed save up to 8% fuel compared with conventional car tires, is experiencing above-average growth in North America, the company said. Evonik expects the world-scale facility to cost around $120 million and be completed in 2018.  

CEO Klaus Engel said the investment is an important part of the German specialty chemicals producer’s strategy to expand its position as a global partner for the automotive supply industry. “With the construction of the plant in the southeastern United States and the planned acquisition of the silica business of Huber, we are strengthening our resource efficiency growth segment and extending our leading market positon as a silica provider,” Engel said. Evonik recently announced plans to acquire US-based Huber, which is specialized in consumer applications such as dental, for $630 million.

Johannes Ohmer, member of the board of management of Evonik Resource Efficiency, explained that South Carolina was chosen for the new facility due to its proximity to key customers in the tire industry. “We want to provide global tire manufacturers with the supply security and flexibility they expect from us in local production. That’s why we invest in sites that are close to our customers," he said

Evonik claims to be the only manufacturer to offer tire industry customers both silica and silanes, two products tire manufacturers combine to improve rolling resistance. As one of the leading producers of both precipitated as well as fumed silica, the German company also manufactures matting agents made from silica. Its output of all three product groups totals around 600,000 t/y.