Degussa: New Joint Venture to Manufacture Rubber Silanes in China

23-Nov-2005

Degussa AG, and Rizhao Lanxing Chemical Industry Co., Ltd. (People's Republic of China) have signed an agreement to establish a joint venture for the manufacture of sulfur-functional silanes for rubber applications. This agreement represents a successful conclusion to the negotiations that followed a memorandum of understanding signed by the two companies in July 2005. Degussa will own a 50 percent share in the new joint venture, and Lanxing 40 percent. A financial investor will assume the remaining 10 percent. The new joint venture company will begin operating under the name Degussa Lanxing (Rizhao) Chemical Industrial Co., Ltd., following approval by the responsible bodies, and having obtained all licenses from the Chinese authorities. The company is scheduled to produce sulfur-functional silanes in liquid form and as a blend with carbon black.

Along with silica, sulfur-functional silanes are used to manufacture high-quality rubber compounds for use in tires, technical rubber articles, and sports shoes. In tires, the use of the silica/silane system allows a significant reduction in rolling resistance and therefore a reduction in fuel consumption.

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