How should China's organosilicon industry be bigger and stronger?

Since the advent of methyl chloride silane in the last century in 50s, China's organic silicon industry has been working hard for 60 years, and has achieved fruitful results. At present, China is already a large country of production and export of methyl chloride. However, compared with TNCs, China's organic silicon enterprises have low sales income and low product quality.

 

 

 

How should China's organosilicon industry be bigger and stronger?

 

 

 

The organosilicon industry has three big short boards

 

 

 

In the recent 10 years, domestic silicone enterprises have continuously promoted the production of methyl chloride. At present, the production capacity of methyl chloride silane in China is close to 3 million tons per year, and the actual production of primary cyclic siloxane is close to 1 million tons per year, and productivity and production are among the best in the world.

 

 

 

Some enterprises based on the production of monomers have also achieved general profits. In 2017, Xin'an, Hesheng, Dongyue, Sanyou and other major silicone enterprises all realized profits. The net profit of the shares was 533 million yuan, up 586.87% from the same period, and the net profit belonging to the shareholders of the listed company was 1 billion 500 million yuan, up 132.81% from the same period.

 

 

 

However, there are many shortcomings in the domestic silicone industry.

 

 

 

One is that the sales income is not high.

 

 

 

From the main domestic production enterprises, the output value of Xin'an, Sein, Sanyou and Xingfa is 5184 dollars, 5281 dollars, 3633 US dollars and 3072 dollars respectively. According to the author's estimate, the output value of Germany's wick and Japan's Xinyue per ton of siloxane is 7200~9400 US dollars, much higher than that of domestic enterprises.

 

 

 

The two is the low grade of the product.

 

 

 

The products of domestic enterprises are mainly low-grade low end products such as siloxane, raw rubber, mixed rubber and 107 glue, and there are still few problems of low grade and low grade in the high-end downstream products. Although profits can be seen from the perspective of economic benefits, only by relying on these low-end products, sales revenue and profitability can hardly go up.

 

 

 

The three is the low export yield of primary form silicone.

 

 

 

Although China's exports of primary form siloxane exceeded 210 thousand tons in 2017, the average export price was only 47.5% of the average import price.

 

 

 

In fact, China has exported a large number of silicones on the one hand, and on the other hand imported high value-added organosilicon products. In 2017, China exported 213 thousand and 600 tons of siloxane, the average export price was 2970 US dollars / ton, 121 thousand tons of imported siloxane, and the average import price was 6250 US dollars / ton. Our country has become a large producer of high value added organosilicon products from multinational companies, which is a great weakness for us.

 

 

 

The experience of MNCs is worthy of reference

 

 

 

How to make up the big and weak short board of China's organic silicon industry?

 

 

 

One is to build a technical service center.

 

 

 

The establishment of a technical service center is a common practice for almost all multinational companies. They have centers for the industry, such as electronics, cars, etc., as well as a center for a process, such as the Japanese Xinyue built Technology Service Center for silicon rubber molding and processing. The center improves the sales ability by adding molding machines, making process instructions and product displays to customers. The information also shows that in recent years, many multinational companies have set up technology service centers in various parts of the world, especially in Southeast Asian countries, in order to seize the opportunity.

 

 

 

The two is to grasp the key and focus on the hot spots.

 

 

 

Medical silicone is a hot topic of investment in some multinational companies. For example, Dow Corning expanded its new medical grade silicone production capacity in February 2017. In addition to using technology to improve product comfort, Dow also arranges a number of engineers to provide training, technical support and testing to help customers understand the performance of the company's medical silicone product and help customers design new products.

 

 

 

Three, we are not keen to expand monomer production capacity, but to expand the capacity of special silicone products.

 

 

 

In recent years, there is no information about building or expanding silicone monomer plants abroad, but there are reports of reducing the capacity of silicone. For example, in November 2016, Michael had reduced its capacity in Leverkusen, Germany, and saved $10 million a year for its operating costs, and some of its needed ring siloxane would be supplied out of a long-term contract.

 

 

 

The expansion of special silicone production capacity is the focus of multinational companies. For example, Xinyue company's new organosilicon production device, built in new Jiangjin, will be completed in May 2018 to produce functional silane and a variety of small products; Walker expands its special silicone capacity at the Metroark plant in Antala, India, Calcutta, up to 6000 tons / year; BRB organosilicon synthesis Co., Ltd. in Malaysia The organosilicon synthesis device was put into production in June 2016, mainly producing vinyl silicone oil, low viscosity poly (two methylsiloxane), organosilicon polyether, chain extender, crosslinking agent, silicone emulsion and so on.

 

 

 

The four is to develop old products in depth.

 

 

 

High temperature glue and liquid glue are well-known varieties in the industry, but the multinational companies are working hard to further develop them, so that the old trees can make new flowers. For example, Xinyue American company has introduced extrusion grade high density silicone rubber (HCR), a kind of extruded profile, a hose and building component for beverage industry and health care products. In addition, Wacker built a liquid silicone rubber plant in bouguhausen and Zhangjiagang.

 

 

 

High performance products derived from old products are also emerging one after another. For example, Dow conning introduced UV curable and transparent single component adhesive, and 3M company developed 6 kinds of organic silica gel adhesives that meet the requirements of low volatile organic compounds and can be used to spray.

 

 

 

The five is deep ploughing to expand product chain and enrich product tree.