New Joint Venture in China

Degussa and Wellink Group Sign Agreement to Cooperate in Producing Performance Silica

Degussa AG, Düsseldorf, and Fujian Nanping Xinyuan Investment Co., Ltd. (Wellink Group) in Nanping, Fujian, have signed an agreement to establish a joint venture for manufacturing and marketing performance silica (precipitated silica and silicates). After final approval by the relevant authorities, which is expected soon, the new joint venture will begin trading as “Degussa Wellink Silica (Nanping) Co., Ltd. (DWS)”. Degussa will hold 60 percent in the new joint venture, while Xinyuan, the company in which Wellink has pooled its silica activities, will hold 40 percent.

DWS has three production sites in China, and supplies regional customers with its performance silica. The Chinese rubber industry is currently the major buyer. DWS anticipates further growth in the silicone rubber and toothpaste sectors, among others. DWS has its own research center in Nanping, Fujian, where it develops new products to meet specific customer requirements.

With this new joint venture Degussa is further strengthening its position as the world’s leading producer of performance silica. It now also ranks number one in the Asia/Pacific region, with eight production sites in five countries and a total annual capacity of 175,000 tonnes.

Wellink, the Chinese partner in the new DWS company, began producing performance silica in 1994, and is the market leader in China today.

Degussa is the world’s sole single-source producer and supplier of carbon blacks, performance silica and rubber silanes (three-product system). The Group is now also able to offer customers in China a broad range of products from five local factories, which are supported by three development centers in China.