While reshaping the supply and demand pattern in the local market, Chinese
silicone enterprises are accelerating their global layout through overseas factory construction, technology licensing, mergers and acquisitions. In the first half of 2025, the industry's overseas investment exceeded 5 billion US dollars, a year-on-year increase of 120%, with Brazil, Morocco, and India becoming key target markets.
Production base: Localized production that meets demand
Sika Group has expanded its production bases in Belo Horizonte, Brazil, Agadir, Morocco, and Suzhou, China through the "China Experience+Local Resources" model. Among them, the Brazilian base has added 50000 tons/year of concrete admixture production capacity to serve local mining and infrastructure projects; The Moroccan factory focuses on mortar and waterproof materials, radiating to the North African and West African markets; The Suzhou base has been upgraded to a global research and development center for automotive adhesive materials, providing customized solutions for customers such as Tesla and BYD.
Among domestic enterprises, Xingfa Group plans a 100000 ton/year organic silicon monomer project in Gujarat, India, utilizing the advantages of low local labor costs and tariffs to directly supply products to customers such as Tata Motors and Reliance Industries; Xin'an Group has acquired the Southeast Asian business of Germany's Wacker and obtained distribution networks in Thailand and Malaysia, resulting in a 60% year-on-year increase in sales in the Southeast Asian market by 2025.
Technical authorization: export Chinese standards
In the high-end field, Chinese companies have begun to achieve brand premium through technology licensing. Dongyue Silicon Materials exports methyl MQ silicone resin production technology to SKC in South Korea and charges a patent fee of 5% of the sales revenue; Silicon Treasure Technology has partnered with Saudi Aramco to develop high-temperature resistant silicone rubber for pipeline sealing in Middle Eastern oil fields, with a single project technology licensing revenue exceeding 20 million US dollars.
Merger and Acquisition Integration: Improving the Global Supply Chain
In July 2025, Hesheng Silicon Industry acquired Momentive's silane business in the United States for $380 million, acquiring its 12 production bases and 200 patents in Europe and North America, becoming the world's largest silane supplier. This acquisition not only eliminates potential competitors, but also connects the entire industry chain of "ore silane deep processing", and is expected to save $120 million in logistics costs annually.
Risk Response: Localized Operations and Compliance Management
In response to overseas investment risks, companies generally adopt a "joint venture+local team" model. Xingfa Group and Adani Group of India have established a joint venture, with the other party responsible for government relations and land acquisition; Xin'an Corporation employs 90% local employees in its Thai factory to avoid cultural conflicts; Hesheng Silicon Industry has hired KPMG to conduct compliance audits to ensure compliance with the European Union's Carbon Border Adjustment Mechanism (CBAM) requirements.
Industry Impact: Reshaping the Global Competitive Landscape
According to PwC's prediction, by 2025, the proportion of overseas production capacity of Chinese organic silicon enterprises will increase to 30%, significantly enhancing their global price discourse power. In the field of DMC, China's export volume accounts for 65% of global trade volume, an increase of 20 percentage points compared to 2020; In the field of silicone rubber, the substitution rate of domestic products in the mid to low end market reaches 80%, and the penetration rate in the high-end market exceeds 30%.
