PPG Industries Inc. (PPG) declared that it is expanding its precipitated silica production capacity in Delfzijl, Netherlands by more than 15,000 tons per year to address the growing global requirement for Agilon performance silica products.

PPG Industries is seeing high demand for its silica products, especially for its Agilon performance silica. The company had signed a global supply agreement with a multinational tire manufacturer for supplying high volumes of the Agilon silica. This rise in production by PPG Industries, which is anticipated to begin from 2016, can solve the problem of the dearth of silica products.

Agilon performance silica is a technologically advanced chemical form of precipitated silica, capable of improving the performance of products in which it is used. It is also known for increasing manufacturing efficiency by minimizing capital, improving throughput and reducing volatile organic compound (“VOC”) emissions.

PPG Industries’ multimillion-dollar investment to expand the production of its silica products will help it to promptly switch between traditional precipitated silica and Agilon performance silica. This will help the company meet the requirements of its customers.

Agilon performance silica increases vehicle fuel efficiency by replacing conventional silica-silane in rubber tires. It also reduces tire traction and treadwear by 5–10%. Moreover, this high-performance silica can be used in a wide range of industrial applications where end products require significant heat dissipation, high tensile strength, improved resistance to wear and tear or lower compression set.

PPG Industries initiated the manufacture of synthetic precipitated silica and brought it to the market back in the 1930s, making it available for a wide range of applications like filler in tire, footwear and silicone rubber applications; as micro-porous filler in battery separator applications and as a flatting and thickening agent in coating, adhesive and sealant applications etc.

PPG Industries currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the diversified chemical space include Compass Minerals International Inc. (CMP), Innophos Holdings Inc (IPHS) and Olin Corp. (OLN), all sporting a Zacks Rank #1 (Strong Buy).