Company invests mid-double-digit million Euro amount in new line scheduled to become operational in 2026
Evonik operates a production facility for high-grade silica in Charleston, South Carolina. Its customers are tire manufacturers who supply the nearby automotive plants.
Evonik, leading global manufacturer of silica, invests in a plant expansion for precipitated silica at its site in Charleston, USA.
The new line in South Carolina is satisfying the high demand in particular from the tire industry in North America and makes the supply chains of Evonik partners in the region resilient by enabling local silica sourcing.
Silica is a key ingredient for fuel-efficient tires and other products like toothpaste or coatings. The group is investing a mid-double-digit million Euro amount. The construction of the new production line is scheduled to begin in mid-2024. Operations will start in early 2026.
"North America is an important strategic growth region for us," says Maike Schuh, Chief Financial Officer of Evonik and responsible for the Americas region. “With the investment in Charleston, we are strengthening our strategic customer-centric approach and improving our cost and sustainability position. Evonik is investing in innovative and green solutions and technologies that offer our customers superior sustainability benefits.” With the new line in Charleston, the company will increase its production capacity for precipitated silica at the site by 50 percent.
“With this expansion, our state-of-the-art Charleston site becomes a major hub for precipitated and sustainable silica products in North America," says Lauren Kjeldsen, Head of the Smart Materials Division, which includes the silica business.
Evonik has defined a clear roadmap towards carbon neutrality for its Charleston site. “The commercial and technical teams have worked intensely in the past years to develop a robust expansion concept, which we will now implement," says Emmanuel Auer, Head of the Silica Business Line. "The expansion will contribute to meet our sustainability targets by combining the positive handprint of Evonik’s silica technologies with a low carbon footprint. It is underlining Evonik’s commitment to the Science Based Targets initiative," says Auer.
The expansion in Charleston fulfills the need for local-to-local supply chains for tires. Moreover, the company plans to introduce circular raw materials to manufacture ULTRASIL Silica to satisfy the sustainability targets of the tire industry.
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