China´s largest silicone production base became operational in Zhangjiagang on Thursday to serve fast-growing demand for the material in the country and throughout Asia. The integrated manufacturing site, operated by Dow Corning Corp of the United States and Germany´s Wacker Chemie AG, involves a total investment of $1.8 billion and includes a siloxane plant and a pyrogenic silica plant.

Siloxane and pyrogenic silica are key ingredients in the manufacture of finished silicone products. Silicone-based materials are used in nearly all sectors of China´s economy, including automobiles, construction, electronics, power generation and distribution, solar energy, cosmetics and personal care products, and textiles.

The Zhangjiagang joint facility is Dow Corning´s third pillar after manufacturing sites in the United States and the United Kingdom, and will serve Asia-based customers, said Stephanie Burns, chairman of Dow Corning Corp.

China represents over 50 percent of Dow Corning´s global sales and has been experiencing a double-digit growth rate, according to the company.

For Wacker, one-third of its sales are generated from Asia where China accounts for 60 percent of revenue. Its sales in China reached 730 million euros ($996 million) last year, representing 20 percent of its global sales.

Wacker also announced its plan to invest a total of 400 million euros in China by 2013.

Source: China Textile Leader