BOSTON - Cabot Corp.’s wholly owned subsidiary, Cabot (China) Ltd., has signed a joint venture agreement with Inner Mongolia Hengyecheng Silicone Co. Ltd. (HYC) to form a joint venture to manufacture fumed silica in China. Cabot will hold an 80% share in the joint venture, and HYC will own the remaining 20%. The agreement was signed following a ceremony on September 12, 2016, at the InterContinental Shanghai Ruijin Hotel.
The joint venture will invest approximately $60 million to build a fumed silica manufacturing facility to be located in Wuhai, China. The new facility will have a manufacturing capacity of 8,000 metric tons of fumed silica per year. Subject to obtaining the necessary governmental and regulatory approvals, construction of the plant is expected to begin in early 2017 and will be completed in 2019. The project will allow Cabot to meet the growing demand for its high-quality, high-performance fumed silica, enabled by a long-term reliable source of feedstock.