It has been a long time since I have studied silicone seriously, but I often hear some discussions in the group, and who is expanding the silicone monomer project.
However, organosilicon is far from getting out of the trough. Where will the batches of expansion projects lead China's organosilicon monomer industry?
As a person who has not studied the basic data of the silicone industry for a long time, it is difficult for me to make a clear analysis, but there are several perspectives for your reference.

1. Why expand production? The larger the scale, the lower the cost? Domestic companies are currently repeating construction and scaling up, rather than having a huge increase in stand-alone device capacity like the joint venture between Dow Corning and WACKER, forming regional supporting production and product digestion. Therefore, such a scale has limited cost reduction. The current expansion of the company is nothing more than fighting for resources and strength. However, compared to the multinational companies that have already reached their doorstep, how much advantage do we have in this regard? Multinational companies undoubtedly have more precise analysis and manipulation in terms of location selection and resource acquisition. The source of resources is nothing more than the low cost of raw materials and energy in the place where the factory is built. However, such places are often remote and lack experienced operators. Only the manufacturer knows how the device operates under harsh natural environmental conditions. In addition, scale is a double-edged sword, especially at the bottom of the industry. Scale brings huge pressure on the company's cash flow. Without first-class technical support for expansion, the risk is undoubtedly huge. HTC's failure to get involved in a single unit and want to leapfrog development should be a good example.

2. why I believe that the one who survives in the end will be myself. Everyone knows that the investors who invest in silicone are basically rich and can afford it, hoping that they will be the last one. However, the laws of the market also tell us that market changes are always based on the withdrawal of excess capacity or the development of the application market, and such a trend is currently not visible. Boss who want to fight may find that they will lose miserably. What to do in such a situation? It is also difficult to do downstream. Without technical support, it is not easy. If you do not understand, you will have no confidence. Therefore, if a company does not have a certain level of technology accumulation and talent pool, the best thing is not to expand, but to shrink, but to retreat. However, it is very difficult to understand how to do it like this.

3.whether IWC can support the development of the enterprise. At present, many companies are thinking of digging people to improve their technology, but it is slightly better in the high-profit stage, but it is very difficult at the current stage. Silicone is a very systematic production system, which needs stability. The team and perseverance. Many companies cannot provide competitive salaries, how can they build a stable team? Without a stable team, how can we guarantee the implementation of the technology-intensive silicone monomer production system and downstream application development? If you want to insist on development in this industry, it is essential to have a high-quality R&D team, although in many people's eyes, this is very expensive.

4.what will be the opportunity for industry elimination in the future? One is the continued price downturn, leading to the despair of capital and giving up; the second is to have better investment opportunities and find a proper step for oneself; the third is that under the situation of increasing pressure on safety and environmental protection, safety and environmental incidents lead to enterprises Had to give up.

In addition to doing your own job well, paying proper attention to the development of the industry, and seeing your company and industry more clearly, it is very meaningful. To throw a brick, I hope everyone can communicate more.