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The Silicone Giants Are Ramping Up Production

Jan 04, 2021

In the past low period, with the integration of organic silicon industry pattern, leading silicon enterprises further deepened their cost advantages through the integration of raw materials in the upstream and downstream, strengthened fine management, and actively expanded production, forming a situation in which small factories withdrew and large factories expanded their capacity.


High temperature sealing ring


Industry veterans believe that, from the perspective of China's macroeconomic cycle, China's organic silicon industrial chain investment has begun a new round of upward cycle, the downstream investment in civil organic silicon products will also become the direction of growth in the investment end.


With the good global demand and the cyclical fluctuation of raw material prices, the industry prosperity will continue to rise in 2021, and the giants of the organic silicon industry chain are actively expanding their production.According to incomplete statistics, about 2.15 million tons of monomer (about 1 million tons of polysiloxane) capacity will be released from 2020-2022, represented by China's leading enterprises.


Some domestic silicone rubber enterprises and some listed companies, such as Luxi Chemical, Dongyue In Shandong province, and Chenguang in Jiangxi Province, have increased their production capacity to cope with future demand growth.