Could you give us a background into Evonik’s presence in Thailand?

Evonik has been active in Thailand since 1989, and we currently have a team of about 100 employees. Our office in Bangkok acts as a distribution hub for the country, as we import products from our global network to supply not only to the domestic market, but also to neighboring countries like Cambodia, Vietnam, Myanmar, and Malaysia. Moreover, we have a production site in Rayong for high-quality precipitated silica and aluminum silicates under the brands of Sipernat and Ultrasil, respectively.

Can you tell us more about the applications of silica and Evonik’s positioning in this market?

At the Map Ta Phut site in Rayong, we produce precipitated silica, while Japan acts as the hub for our specialty, hydrophilic grades silica (Aerosil). We have also invested in a production plant expansion for fumed aluminum oxide at the site in Yokkaichi, Japan. The facility will be Evonik’s first alumina plant in Asia, focusing on the production of specialty solutions for lithium-ion battery technologies, used for electric vehicles. The precipitated silica, Sipernat, made in Thailand serves specialty markets such as anticaking or rheology modifiers applied to everyday products such as toothpaste. While Ultrasil is an indispensable component for tire manufacturers and producers of rubber goods. In fact, fillers like silica represent about 30% of a tire, being the most important component after rubber itself. Mixed with the rubber, silica determines rolling and braking resistance properties; in this way, we contribute to the manufacturing of “green” tires, optimized for lower rolling resistance and road holding with the beneficial impact of lower CO₂ emissions.

The global silica market is believed to grow at 7% CAGR over the next five years. What are the main growth drivers in Thailand?

Thailand is one of the largest global car manufacturers in the world and the second largest economy in Southeast Asia. Every large global automobile producer has a presence in the country, and many Chinese manufacturers are assembling from scratch here, which has led to the development of a complete supply chain ecosystem for car production. The country’s vision is to build on the existing capabilities but evolve into a green manufacturing hub for EVs and electric batteries. Our Next Generation Solutions for electric vehicles support the battery industry and customer growth particular in Asia.

Evonik will supply bio-based precipitated silica to tire manufacturers. What raw materials will you be using and how are these more sustainable?

Precipitated silica is traditionally made from sand, which is then melted with soda ash to become waterglass. This melting process is energy-intensive, which is why we looked for an alternative in using rice husk ash (RHA) as a feedstock. RHA is a byproduct of bio power plants that burn rice husks, abundantly available in Thailand. We found we can make better use of the leftover ash, typically distributed on the fields as a fertilizer, by using it as a raw material for silica. We teamed up with a local bio power plant producer Phichit Bio Power, and with Pörner Group, an Austrian engineering company, so that now we can convert the ash into water glass, which takes the power-intensive melting stage out of the equation, allowing us to reduce the carbon emission of Ultrasil by 30%.

How is Evonik positioned to face a slower economy in 2023?

2022 was split into a very strong first half and a rather challenging second half, for all known reasons like higher energy prices and spread-out inflation; these issues proved more persistent than expected. The economic recovery in China will be telling in what happens next globally. However, it would be shortsighted not to continue investing in innovation regardless. At Evonik, our strategy relies on continuously building on our innovation and competency, under consideration of sustainability.

Do you have a final message?

With our next-generation solutions like the green Ultrasil, Aeroxide for high-performance lithium ion-batteries, and the Sepuran membranes for the biogas power plants, Evonik brings to the table solutions to reduce the carbon footprint of our customers, not only in Thailand, but in the entire region. We are always in contact with the Thailand Board of Investment and with our partners to nurture mutual growth within the country.