(Jiangxi New Materials Co., Ltd.)

HC Chemical Network News: Cabot Corporation announced that its wholly-owned subsidiary Cabot (China) Investment Co., Ltd. will sign a joint venture agreement with Inner Mongolia Hengyecheng Silicone Co., Ltd. (hereinafter referred to as “Hengyecheng”) , jointly produce fumed silica in China. The new company will be named Cabot Hengyecheng High Performance Materials (Inner Mongolia) Co., Ltd., in which Cabot and Hengyecheng hold 80% and 20% of the shares respectively. The agreement signing ceremony was held grandly on September 12 at the InterContinental Hotel Ruijin in Shanghai.

(Jiangxi New Materials Co., Ltd.)

Mr. Nicholas S. Cross, Executive Vice President of Cabot Corporation and President of Performance Chemicals and Specialty Fluids Division, and Director of Inner Mongolia Hengyecheng Silicone Co., Ltd. Mr. Guo Junhao, the chief representative, signed the contract

The joint venture will invest approximately RMB 400 million to build a world-class fumed silica production plant in Wuhai, Inner Mongolia, with an annual production capacity of 8,000 tons of fumed silica. Subject to obtaining relevant government and statutory approvals, construction of the plant is expected to begin in early 2017 and be completed in 2019. The project has a long-term and stable source of raw materials, ensuring that Cabot can meet the growing market demand for high-quality, high-performance fumed silica.

“Growth in our core business is a key component of the new company’s strategy and today’s announcement reflects our continued commitment to that strategy. We are the market leader in fumed silica and this investment will further strengthen our position in this core market.” Cabot President and CEO Keshan En said, “Cabot has achieved great success in China over the years. As a model of sustainable production, in the process of meeting customer needs , we continue to discover new opportunities. Hengyecheng has strong strength, and we will cooperate sincerely to build an efficient and competitive fumed silica production plant in China.”

“Through this investment, we will further strengthen our leadership in the fumed silica market and promote growth in various downstream industries in China.” Nick Cross, Cabot’s executive vice president and president of global performance materials business, said, “This joint venture will accelerate our growth in China, and we look forward to providing local customers with high-quality products and solutions to grow in the rapidly growing automotive, construction, renewable energy and other industries.”

“We are excited to partner with an industry leader and innovator like Cabot to build a state-of-the-art fumed silica plant,” said Chairman of Zhejiang Zhongcheng Holding Group Co., Ltd., the parent company of Hengyecheng Wang Yongquan said, “Not only can we use Cabot’s silica for our silicone synthesis, but we can also improve production efficiency by utilizing a recycling system.”

Cabot has been operating in China for nearly 30 years and currently has four production bases in Shanghai, Xingtai, Jiangxi and Tianjin in China. Cabot’s production network spans Asia, Europe and the United States, and the new Wuhai plant will become its seventh fumed silica plant in the world.

Editor in charge: Huang Jujun