Sanyou Chemicals builds silicone monomer expansion

Sanyou Chemicals builds silicone monomer expansion On May 21, the aerospace electronic bulletin reported that Tangshan Sanyou Silicon Industry Co., Ltd., a subsidiary of Sanyou Chemicals, has decided to proceed with the second phase of its silicone monomer expansion project. This strategic move aims to strengthen the company's competitive position, lower production costs, optimize product structure, and achieve greater economies of scale while integrating upstream and downstream operations. The second phase of the project involves expanding the production capacity of organic silicon monomers by 100,000 tons annually. With a total investment of 496 million yuan, approximately 400 million yuan will be allocated for construction. The funding will come from 30% internal capital and 70% bank loans. The project is expected to take 18 months to complete. Once operational, it will significantly boost annual sales revenue, estimated at 900 million yuan, and generate a pre-tax profit of 78 million yuan per year. According to the company, the silicone industry is recognized as a high-tech sector supported by national policies. The second phase project will be built on existing facilities without requiring new land acquisition. This approach not only minimizes environmental impact but also enhances cost efficiency and market resilience. By expanding its production capabilities, the company aims to refine its product portfolio, increase product value, and better meet customer demands and the evolving needs of the downstream industrial chain. It also supports the development of a circular economy and reinforces the company’s technological and scale advantages in the industry. This expansion is considered crucial for ensuring long-term sustainability and growth. By maximizing profitability and maintaining a strong market presence, the project will play a vital role in securing the future of the company in the competitive chemical industry.

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