Strategic Response Strategies to Evonik's Silica Production Closure: Advantages, Disadvantages, and Recommendations for Domestic Manufacturers - Enhance R&D, Expand Market Presence, and Optimize Supply Chain Management for Sustainable Growth

Evonik announced in 2025 that it will close its silica production bases in Watford, New York, and Havre de Grace, Maryland, in the United States. The closures are scheduled for the middle of 2025 and the middle of 2026 respectively. This move is part of its global capacity optimization strategy, aiming to reduce costs by integrating the production network and improving efficiency, and to cope with the structural changes in the industry. Evonik stated that for the affected products, production capacity will be allocated through other factories to ensure supply, and at the same time, the research facilities in Havre de Grace will be retained to drive innovation.

Advantages and Disadvantages for Domestic Silica Manufacturers

Advantages:

Opportunity from Market Supply Gap: The closure of Evonik's factories in the United States may lead to a shortage of silica supply in North America. Domestic enterprises can take this opportunity to expand their export share, especially in the downstream industries with stable demand such as coatings and plastics.

Alleviation of Cost Pressure: The global adjustment of silica production capacity may relieve the raw material procurement pressure on domestic enterprises. If there are fluctuations in international market prices, domestic enterprises can flexibly adjust their pricing strategies.

Window of Technological Cooperation: The research facilities retained by Evonik may continue to conduct technical exchanges with partners. Domestic enterprises can explore the possibilities of joint research and development or technology introduction.

Potential Risks:

Intensified International Competition: Evonik may maintain its market share through other factories in Europe and Asia or strategic partners. Domestic enterprises need to be vigilant against its targeted layout.

Uncertainty of the Supply Chain: If the adjustment by Evonik leads to fluctuations in raw material supply, it may affect the production stability of domestic enterprises. It is necessary to establish diversified supply channels in advance.

Suggestions for Response Strategies

Strengthen Technological R&D and Product Upgrading: Focus on the research and development of high-performance silica (such as fumed silica and precipitated silica products) to increase the added value of products and replace high-end imported products.

Expand the Layout of the International Market: Accelerate the entry into mature markets such as North America and Europe by setting up overseas branches or cooperating with local enterprises to fill the gap left by Evonik's withdrawal.

Optimize Supply Chain Management: Establish long-term cooperative relationships with domestic and foreign raw material suppliers to ensure the stability of raw material supply. At the same time, explore green production paths such as waste silicon recycling to reduce costs.

Pay Attention to Policies and Industry Trends: Closely track the changes in international trade policies (such as anti-dumping investigations) and the restructuring progress of Evonik, and flexibly adjust export strategies.

Seek Strategic Cooperation: Deepen the ties with downstream application enterprises (such as coating and pharmaceutical enterprises), and enhance the synergy of the industrial chain through customized solutions.

In conclusion, domestic enterprises need to take "technology-driven + market expansion" as the core, seize the window period brought about by Evonik's capacity adjustment, and at the same time prevent potential risks to achieve sustainable development.

Implement the substitution strategy and completely substitute all products in this series at a 100% rate.