In December 2025, China's ethyl silicone oil industry will experience dual benefits of capacity expansion and technological upgrading. Multiple leading enterprises are promoting the industry's transformation towards high-end and green through new projects and technological innovations.


Hesheng Silicon Industry: Annual production of 100000 tons of functional silicone oil project landed in Xinjiang
On December 13th, Hesheng Silicon Industry released an environmental impact assessment announcement for the 100000 ton functional silicone oil project of Hesheng Silicon Industry Co., Ltd. in western Xinjiang. The project plans to construct one 200000 ton siloxane production line and three downstream deep processing product production lines, with a production capacity of 20000 tons/year for vinyl silicone oil. The project adopts full process automation control technology, and the product purity is increased to 99.99%, meeting the needs of high-end fields such as semiconductor manufacturing. After the project is put into operation, the company will form a complete industrial chain from silicon mining to terminal applications, with an expected annual output value exceeding 5 billion yuan, "said the chairman of Hesheng Silicon Industry


Yunneng Silicon Materials: Mass production of low ring vinyl silicone oil breaks through environmental bottlenecks
Yunneng Silicone Technology Development Co., Ltd., a subsidiary of Yunnan Energy Investment Group, announced that its independently developed low ring vinyl silicone oil has achieved large-scale production with an annual capacity of 5000 tons. This product optimizes the catalytic process to reduce the high ring content in traditional vinyl silicone oil from 15% to below 0.5%, and reduces volatility by 80%, meeting the requirements of the EU REACH regulation. At present, the product has been applied to electronic packaging and new energy battery thermal management systems of companies such as Huawei and BYD, with a year-on-year increase of 30% in export volume.


Xinyuan Chemical: Ultra low temperature resistant ethyl silicone oil fills the domestic gap
The ultra-low temperature resistant ethyl silicone oil (which remains liquid at -70 ℃) developed by Xinyuan Chemical (Shandong) Co., Ltd. has successfully been industrialized. This product adopts fluorosilicone co modification technology, breaking through the performance limitations of traditional silicone oil in extreme environments, and is widely used in aerospace, deep-sea exploration and other fields. For example, in a certain model of satellite solar panel deployment mechanism, after replacing traditional metal lubrication parts with this material, the weight of the components is reduced by 45% and the radiation resistance is improved by three times. At present, Xinyuan Chemical has occupied 60% of the domestic high-end market share.


Industry Trend: Green and Intelligent Mainstream
The production and capacity of China's silicone oil industry are both showing a rapid growth trend. With the promotion of the "dual carbon" target, the ethyl silicone oil industry is accelerating its transformation towards green. Enterprises such as Yunneng Silicon Materials reduce energy consumption through full process automation control, while Xinyuan Chemical reduces harmful substance emissions through fluorosilicon modification technology. In addition, the application of artificial intelligence in production process optimization is becoming increasingly widespread. For example, Hesheng Silicon Industry uses AI algorithms to dynamically adjust reaction parameters, and the product qualification rate has been increased to 99.5%.


Competitive landscape: Leading enterprises dominate, differentiated breakthroughs for small and medium-sized enterprises
The concentration of ethyl silicone oil market in China is relatively high, with leading enterprises such as Hesheng Silicon Industry, Yunneng Silicon Materials, and Xinyuan Chemical occupying dominant positions. Small and medium-sized enterprises achieve differentiated competition through innovation in segmented fields. For example, a certain enterprise in Anhui focuses on the research and development of ethyl silicone oil for textile use, and its products can increase fabric softness by 50%. It has established cooperation with brands such as Uniqlo and ZARA.


It is predicted that by 2030, the global market size of ethyl silicone oil will reach 1.865 billion US dollars, with China accounting for over 40%. Industry experts say, "With technological iteration and downstream application expansion, ethyl silicone oil is upgrading from a traditional industrial material to a core element of high-end manufacturing, and its market value will continue to be released