Capital requirements generally include land acquisition, construction, equipment procurement, installation, pre-operative expenses, and initial working capital. The total amount varies with capacity, technology, and location.
To start a silicic acid production business, one needs to conduct a market feasibility study, secure required licenses, arrange funding, select suitable land, procure equipment, recruit skilled labor, and establish a supply chain and distribution network.
Silicic acid production requires raw materials such as sodium silicate, sulfuric acid or hydrochloric acid, and deionized water.
The silicic acid factory typically requires reaction vessels, acid dosing systems, agitators, filtration units, storage tanks, and drying equipment. Additional infrastructure includes pH control systems, safety equipment, and laboratory setups for quality testing.
The main steps generally include:
Sourcing of raw materials
Preparation of sodium silicate solution
Acidification under controlled reaction
Precipitation of silicic acid
Filtration and washing
Drying and packaging
Usually, the timeline can range from 12 to 36 months to start a silicic acid production plant, depending on factors like plant capacity, regulatory approvals, procurement and installation of equipment, and trial production. Smaller setups may launch more quickly with streamlined operations.
Challenges may include high capital requirements, securing regulatory approvals, ensuring raw material supply, competition, skilled manpower availability, and managing operational risks.
Typical requirements include business registration, environmental clearances, factory licenses, fire safety certifications, and industry-specific permits. Local/state/national regulations may apply depending on the location.
The top silicic acid producers are:
Vizag Chemicals
Ferro Corporation
Fenton Chemicals
Sahkar Pharmaceuticals Private Limited
Cabot Corporation
Wacker Chemie AG
Profitability depends on several factors including market demand, production efficiency, pricing strategy, raw material cost management, and operational scale. Profit margins usually improve with capacity expansion and increased capacity utilization rates.
Cost components typically include:
Land and Infrastructure
Machinery and Equipment
Building and Civil Construction
Utilities and Installation
Working Capital
Break even in a silicic acid production business typically range from 3 to 6 years, depending on product pricing, operational efficiency, raw material sourcing, and end-use market demand. Effective cost management and high-volume contracts can accelerate return on investment.
Governments may offer incentives such as capital subsidies, tax exemptions, reduced utility tariffs, export benefits, or interest subsidies to promote manufacturing under various national or regional industrial policies.
Financing can be arranged through term loans, government-backed schemes, private equity, venture capital, equipment leasing, or strategic partnerships. Financial viability assessments help identify optimal funding routes.