China's silicone industry started late, but large-scale production

2022-07-19

It was reported on March 19 that CATL is considering a site selection for a US$5 billion battery factory, which will eventually employ as many as 10,000 workers. CATL executives reportedly flew to Mexico for a meeting earlier this month. CATL’s new North American plant will produce nickel-manganese-cobalt and lithium iron phosphate batteries to supply Tesla and other automakers, two people familiar with the matter said. However, Ningde Times has not responded to this news. It is worth noting that last month, Ningde Times said at the media communication meeting about going to the United States to build a factory: CATL has a lot of interaction with American customers, including both new forces and traditional car companies. The two sides jointly discussed various possible supply and cooperation plans, as well as the possibility of localized production, but the specific situation needs to consider worker training, The impact of factors such as efficiency and labor unions on quality and cost.

my country's silicone industry started late, but large-scale production is rapid. With the advantages of raw materials and labor costs, more and more monomer companies have begun to build factories and put into production, and the import dependence has gradually weakened. With the growth of the export of these products, silicone products have also been exported accordingly. In addition, foreign manufacturers (Dow Corning, Wacker) have established factories in China, it has played an important role in the technological upgrading of silicone products in China, and colleagues have also demonstrated the export of silicone products in China.

According to data monitoring, China's total silicone monomer production capacity has reached 2.155 million tons (including Zhangjiagang factory), accounting for about 43% of the world's total production capacity. China's silicone import volume was about 196000 tons in 2010 and 135500 tons in 2013, with an average annual decline of about 11.2. In 2010, China's polysiloxane export volume was about 51000 tons, and in 2013 it was about 95000 tons, with an average annual growth rate of 25.6. Many data show that, china has begun to gradually shift from an importer to an exporter. According to incomplete statistics, there are as many as tens of thousands of organic silicon products in the world, and there are many and complex downstream enterprises. As far as China is concerned, with the rapid development of monomer enterprises, it provides the guarantee of raw materials for the downstream enterprises of organic silicon, and also provides development opportunities.

However, in recent years, the situation of overcapacity of silicone monomers has become prominent, and various monomer companies have begun to expand and improve the original industrial chain, which has created greater pressure on downstream companies that purchase silicone raw materials. Transformation and upgrading are imperative.

Single industry: the situation of overcapacity will be difficult to change greatly in the next 2-3 years, and industry integration will be carried out quietly. How to stand firm in the torrent of integration has become the direction of the later development of single enterprises. Analysts believe that improving the product industry chain, developing horizontal peripheral products and vertical high value-added products will become the mainstream of the market; production technology should learn from the relatively developed monomer technology abroad and be brave in innovation; comprehensive utilization of by-products is also an indispensable process for the sustainable development of single enterprises.

Downstream enterprises: when monomer enterprises improve the industrial chain, it is bound to have an impact on independent downstream enterprises. In the process of sustainable development of silicone rubber enterprises in the future, high value-added, high-end fields and high-tech products have become the top priority. At the same time, China's silicone rubber export needs to be strengthened. In the next few years, the growth rate of domestic silicone rubber consumption will gradually slow down, and export is undoubtedly another shortcut for sustainable development of enterprises, china's silicone rubber brand building, product quality, there is a big gap, in short, the downstream enterprise sustainable development potential, there is also pressure, risks and opportunities coexist.