Reported in Shanghai on September 12, 2025
Under the pressure of an industry capacity utilization rate of less than 75%, Chinese silicone enterprises are opening up new battlefields through global layout and regional deepening. In the first three quarters of 2025, the industry's outward investment increased by 137% year-on-year, with overseas factory construction and county-level economic investment showing a "dual wheel drive" trend.
Global layout: Wacker Chemie's "Eastern European Chess Game"
Wacker Chemie's new base in Karlovy Vary, Czech Republic, with an investment of 580 million euros, has entered the equipment debugging stage. This factory with a planned production capacity of 120000 tons will adopt AI driven continuous production technology, reducing unit product energy consumption by 40% compared to traditional processes. More noteworthy is its product positioning: the room temperature vulcanized silicone rubber produced is specifically designed for the sealing needs of electric vehicle battery packs, while the high-temperature vulcanized silicone rubber is aimed at the European power grid upgrade and renovation market.
Our market share in Europe has reached 28%, but the penetration rate in the new energy sector is less than 15%, "said Heda, the global president of Wacker Chemie. The new base will shorten the supply cycle to customers such as BMW and Siemens, and is expected to achieve a revenue of 1.5 billion euros in 2027, with new energy related products accounting for over 60%.
County economy: sinking market nurtures new giants
In Gucheng, Hubei, Xingfa Group is installing equipment for a 3 billion yuan organic silicon synthetic leather project. This project with a planned production capacity of 100 million meters per year will use bio based silicone oil to replace 30% of petroleum based raw materials, with a product degradation rate of 82%. What is even more remarkable is its innovative business model: by jointly building a "flexible supply chain" with 2000 local shoe manufacturers, it achieves customized production of small batches and multiple varieties.
County market is not synonymous with low-end market, "said Li Guozhang, Chairman of Xingfa Group." The investment intensity of unit production capacity in the Gucheng project is only 60% of that in coastal areas, but through shared laboratories, centralized procurement and other models, research and development efficiency has been improved by 40%, and logistics costs have been reduced by 25%. This "light asset, heavy operation" model has been imitated by enterprises such as Dongyue in Shandong and Xin'an in Zhejiang.
Technology Mergers and Acquisitions: Integrating Global Innovation Resources
In 2025, mergers and acquisitions in the organic silicon industry will exhibit a "technology oriented" feature. After being acquired by KCC Group in South Korea, Maitu Group immediately launched an asset acquisition of Bio Med Sciences in the United States, obtaining 127 patents in the field of organic silicon coating medical. This transaction has increased Maitu's market share in high-end medical markets such as wound care and surgical protection from 8% to 23%.
In the next three years, the industry will enter a 'technology integration period'. Wang Hao, Chief Analyst of CITIC Securities Chemical, predicts that companies with technology acquisition capabilities will form a three-dimensional competitive advantage of 'patent pool+production base+sales network', while companies that rely solely on scale expansion may face the risk of being eliminated.
