On September 29, 2025, Yantai News - Domestic chemical leader Wanhua Chemical Group Co., Ltd. recently announced that its investment in the construction of an organic silicon intermediate project has been successfully put into operation, and the performance of the first batch of products has reached the leading level in the industry, marking a key step for the enterprise's organic silicon industry chain to move towards high-end and refined.


Project highlight: Integration of the entire industry chain and application in multiple fields
The project is located in Wanhua Chemical Yantai Industrial Park and adopts independently developed fluidized bed reactor technology. The single line production capacity reaches 200000 tons per year, and the unit energy consumption is reduced by 20% compared to traditional processes. Our products cover WANICONE ® The series of organic silicon intermediates can be widely used in high-end fields such as battery packaging for new energy vehicles, medical grade conduits, and 5G communication cooling materials. According to the project leader, the intermediate is purified at the molecular level with impurity content controlled at the ppm level, meeting the strict standards of semiconductor packaging adhesives.


Strategic significance: Breaking international monopolies and empowering emerging industries
The production of Wanhua Chemical coincides with a period of deep adjustment in the global organic silicon industry pattern. On the one hand, the EU has launched a "carbon footprint tracing" investigation on Chinese photovoltaic adhesive products, forcing domestic enterprises to build low-carbon supply chains; On the other hand, breakthroughs in bio based silicone rubber technology, such as the production of silane from rice husks by the Chinese Academy of Sciences, are driving the green transformation of raw materials. Through the full industry chain layout of "industrial silicon organic silicon monomer terminal products", Wanhua Chemical not only reduces its dependence on petroleum based raw materials, but also builds cost advantages through its own metal silicon smelting plant.


Market analysts point out that this project will directly impact the market share of international giants such as Wacker Chemie and Meitu. Data shows that by 2025, China's production capacity of organic silicon monomers will account for 77.33% of the global total, but the dependence on high-end electronic grade silicone oil imports will still exceed 30%. Wanhua Chemical's intermediate products can replace imports and are expected to save the country over 500 million US dollars in foreign exchange annually.


Industry impact: Technology iteration accelerates, price system restructuring
Boosted by the news of production, the price of organic silicon DMC (dimethyl cyclic siloxane mixture) rose by 200 yuan/ton on September 25th, and the mainstream quotation in East China exceeded 12000 yuan/ton. Although the current industry capacity utilization rate is only 76.15%, Wanhua Chemical is expected to seize the opportunity in high growth areas such as photovoltaic adhesives and electronic adhesives with its cost advantage (15% lower than the industry average) and vertical integration capability.