Silica venture in Japan

A new joint venture company in Japan has entered the market for precipitated silica, silica gel and matting agents, used as additives in a number of pharmaceutical dosage forms.

The company, called DSL Japan Co, is a joint venture between Germany's Degussa and Japan's Shionogi and is due to start operations today. The move is part of a strategy to focus Shionogi's business on the lucrative pharmaceutical sector.

Degussa will provide back-up for the new company with its knowledge of production technologies for precipitated silica and matting agents, as well as its global sales network, supported by the group's Technology Service Centre. Shionogi will transfer to the new company its precipitated silica and silica gel production, marketing and research and development divisions.

In Japan, the products of both companies will be sold through Degussa Japan Meanwhile, the companies said they intend to collaborate on expanding DSL's product line-up in the Asian market. The JV is forecasting sales of around 3 billion yen (€23m) a year.

Tokyo-based DSL is 51 per cent owned by Degussa with Shionogi owning the remaining stake in the JV, which has a market capitalisation of around 400 million yen.

The current managing director of Degussa Japan, Takehiko Ito, will serve as chairman of DSL, while the other directors are Degussa's Winfried Ries and Shionogi's Kaoru Miyashita, currently general manager of Shionogi's industrial chemicals division.