Evonik Strengthens its Position in Silanes Market of North America by Acquiring Silbond

Evonik Industries AG has acquired Silbond Corp. (Weston, Michigan, USA) one of the leading suppliers of silicic acid esters. The transaction, with a purchase price in the mid-double-digit million Euro range, closed on February 28, 2014. As a special group of functional silanes, silicic acid esters are used in a wide variety of applications with a promising future-for example in the electronics industry or in chemical applications such as coatings. The most important silicic acid ester is Tetraethoxysilane (TEOS) which is manufactured by Silbond.

Patrik Wohlhauser, member of the Executive Board of Evonik Industries and Chief Operating Officer, says: "Silbond has aligned its specialty product portfolio to attractive growth markets. With the acquisition of the company we are further strengthening our leading position as a whole with regards to silanes and are improving our position in relation to technology and profitability."

Dr. Johannes Ohmer, Head of the Inorganic Materials Business Unit in the Resource Efficiency Segment, says: “The acquisition of Silbond opens up the door for us into the attractive North American region. We are now able to supply our customers with TEOS from a local production capacity and monitor future growth in the silicic acid esters market."

Evonik already produces functional silanes at its sites in Rheinfelden (Germany) Antwerp (Belgium) Rizhao (China) and Mobile (USA). With the Weston site, the Group is now extending its production network with efficient technology for silicic acid esters, primarily for the attractive North American region.

With its TEOS specialty business, Silbond supplies end markets with above-average growth. These markets include the electronics industry as well as markets for chemical applications with an annual growth of 5 to 6 percent. In addition, TEOS is used as a binder for foundry molds and in anti-corrosion paints. There is further growth potential when connecting it to the current growth fields of the Resource Efficiency Segment, such as insulation. The company has about 60 employees.