Dongyue Group starts 400,000 tons/year of silicone project

On July 7, Dongyue Group officially held a groundbreaking ceremony for its new 400,000-ton-per-year silicone project. This initiative is currently one of the largest organic silicon projects in China and marks a significant milestone in the development of the Dongyue International Fluorine-Silicon Material Industrial Park. As a key component of the park’s high-tech industrial chain, this project represents a crucial step forward in transitioning from fluorine-based materials to a more integrated fluorine- and silicon-based industry. Silicone, often referred to as "industrial monosodium glutamate," has an incredibly wide range of applications across industries such as electronics, automotive, construction, and healthcare. The level of technological advancement and production scale in silicone manufacturing reflects a country's overall material development capability. With China's growing economy and rising living standards, the demand for organic silicon monomers and materials has been increasing at an annual rate of over 25%. However, domestic production has not kept up with this rapid growth, leading to heavy reliance on imports—accounting for approximately 70% of total consumption. According to the China Fluorine-Silicon Organic Material Industry Association, even if China's output of silicone monomers reaches 1 million tons per year during the "Eleventh Five-Year Plan" period, about 30% of the required materials will still need to be imported. As the largest silicone project in the country, Dongyue Group has invested a total of 4.5 billion yuan in the 400,000-ton-per-year facility, which will be developed in two phases. The first phase includes a 200,000-ton-per-year organosilicon monomer (dimethyl dichlorosilane) production unit and related infrastructure, scheduled for completion by December 2007. The second phase is expected to be completed by December 2009. Once fully operational, the project is anticipated to generate an annual sales revenue of 5 billion yuan and contribute 700 million yuan in profits and taxes, significantly boosting the company's market position and supporting China's long-term development in the silicone industry.

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