Gaseous- Process Silica White Faces Challenge

By John Zheng

The domestic output can not meet the market demand

Major producers of gaseous-process silica white in China include
Shenyang Chemical Co., Ltd., Guangzhou GBS High-Tech & Industry
Co., Ltd. and Shanghai Chlor-Alkali Chemical Co., Ltd. The
capacity was around 3.5 thousand t/a in 2005, the output was 2
150 tons, the net import amount was 9 034 tons and the apparent
consumption was 11 184 tons.
   In terms of production technology, the silicon-lump
chlorination and hydrolysis process in Shenyang Chemical Co.,
Ltd. and the methyl trichlorosilane hydrolysis process in
Guangzhou GBS High-Tech & Industry Co., Ltd. have both gained
intellectual property right and achieved large-scale commercial
production. Products in Shenyang Chemical Co., Ltd. have stable
quality and complete variety. The production in Shanghai
Chlor-Alkali Chemical Co., Ltd. is still at the pilot test stage.
The gaseous- process silica white sector in China has developed
rapidly in recent years and the average annual growth of the
market demand has reached 35%. As the domestic output can not
meet the market demand, great quantities of import have to be
made each year. Domestic producers are constructing or planning
to construct new gaseous-process silica white units. Guangzhou
GBS High-Tech & Industry Co., Ltd. is making preparations for
the follow-up 2 thousand t/a unit and plans to put it on stream
in 2007. Zhejiang Kaihua Xinji New Material Co., Ltd. (jointly
established by Guangzhou GBS High-Tech & Industry Co., Ltd. and
Zhejiang Xinan Chemical Group) has started the construction of
a 5 thousand t/a project. (CCR2006, No. 4 & No. 5). Shenyang
Chemical Co., Ltd. plans to expand the capacity to 5 thousand
t/a before 2010. Shanghai Chlor-Alkali Chemical Co., Ltd. also
plans to expand the capacity to 2 thousand t/a.
   Due to the price rise of raw materials and the increase of
the freight cost, the price of gaseous- process silica white in
the domestic market increased in 2005. The price is different
with different surface-modified varieties, usually being RMB100
000 - 200 000 per ton.

Foreign producers come to China and make investments

The total capacity of gaseous- process silica white in foreign
countries was around 210 thousand t/a in 2005 and the output was
163 thousand tons. The capacity growth is the largest in Europe
whereas the capacity growth is relatively slow in Asia. With the
rapid economic growth in Asia, the demand of gaseous- process
silica white is making a constant increase. Attracted by
relatively low production cost and environmental protection
pressure, foreign producers started to shift their focus of
attention to Asia. Foreign companies have not only exported
products to the Chinese market but also constructed large
production units in China in recent years. The 4.6 thousand t/a
unit in Cabot Bluestar Chemical (Jiangxi) Co., Ltd. jointly
established by Cabot of the United States and Bluestar New
Chemical Materials Co., Ltd. will be completed and put on stream
in 2006. Tokuyama of Japan actively plans to construct a 5
thousand t/a unit in China. Cabot of the United States also has
the intention to construct a wholly-owned unit in China. It is
expected that the capacity of gaseous- process silica white in
China will be more than 20 thousand t/a in 2008.

Domestic producers are faced with huge pressures

Both the production process and the production scale of gaseous-
process silica white in China have had a great upgrading in
recent years. Products can partially replace imports and the
product quality has approached the world advanced level.
Compared with Degussa of Germany and Cabot of the United States,
however, there are still problems of small production scale and
incomplete product variety.
   While quickly expanding market shares, foreign producers are
making a planned shift of their production units to China to
effectively control the Chinese market. The gaseous- process
silica white sector in China is therefore faced with huge
pressures and challenges. It is imperative for domestic
producers to quickly expand production scale, raise product
grade, increase product variety, develop production technology
and produce high-quality products to meet the market demand. The
demand of surface-modified hydrophobic varieties is very large
in domestic users. The production of such product varieties is
just starting in China. Intensifying the technology research and
the commercial production of such product varieties is the key
to the expansion of new market shares.

Table 1  Major Gaseous- Process Silica White  
                 Producers  in China in 2005     (t/a)
Shenyang Chemical Co.                   1 500
Guangzhou GBS High-Tech & Industry Co.     1 500
Shanghai Chlor-Alkali Chemical Co., Ltd.    300
Source: CNCIC Chemdata

Table 2  Price of Gaseous- Process Silica  
                       White in China in 2005
Specific area (m2/g)    Price (RMB/t)
        150     35 000 - 45 000
        200     45 000 - 60 000
        300     58 000 - 65 000
        380     65 000 - 75 000
Source: CNCIC Chemdata

Table 3  Major Gaseous- Process Silica White
             Producers in the World in 2005  (t/a)
Producer                Capacity
Cabot of the United States     45 000
Degussa of Germany      60 000
Wacker of Germany       85 000
Tokuyama of Japan       15 000
Source: CNCIC Chemdata