Wang Yuelin (first from left) accepts an interview with each reporter. Source: Every reporter Xie Zhenyu


The silicone industry has developed rapidly in China in recent years. According to statistics, in 2017, the total production capacity of domestic organosilicon methyl siloxane has reached 1.391 million tons, the output is expected to be 940,000 tons, and the consumption is about 895,000 tons, ranking first in the world, and supply and demand continue to improve.


"It should not be overlooked that at the same time of industrial development, the lack of investment in R&D, the shortage of R&D talents, and the lack of a strong brand are also real problems facing the industry." On September 29, Sichuan University alumni returned to school and technology achievements school The monthly pick-up is held in Chengdu. After the meeting, Wang Yuelin, chief scientist of Hubei Xingfa Group, told the reporter of "Daily Economic News".


The development of the silicone industry


Silicone, an organosilicon compound, is widely used in construction, electrical and electronic, textile, automotive, machinery, leather and paper, chemical light industry, metal and paint, medical and medical, military and other industries.


"The organic silicon industry as a whole is not very large, but it is very important. Military industry, automobiles and many industries closely related to the people need it." Wang Yuelin said, "It is very appropriate to compare it to the salt in the diet."


In the past decade, domestic silicone companies have pushed methyl chlorosilane (a type of silicone) to a new high.


Wang Yuelin believes that the industry is also gradually surviving the fittest. "Last year's safety and environmental protection has eliminated a number of enterprises, coupled with the upward price increase in the industrial chain, for downstream enterprises, the pressure is very large, and some companies have also withdrawn." Wang Yuelin believes that the current price hike has come to an end, because the downstream demand in the industry is lacking. "You can raise the price, but you can't pass it, no one buys it. By then, your product will be replaced by other products."


"At present, the pressure on some enterprises in China is still quite large. Inventories in recent months, too much inventory has a great impact on the cash flow of enterprises. In fact, as long as the price is lowered, the inventory is still relatively fast." Wang Yuelin said.


In Wang Yuelin's view, during the development of the silicone industry, the company's R&D investment is insufficient, the R&D talents are insufficient, and the lack of strong brands has become a real problem encountered in the development of the industry. “Many companies don’t invest a lot of money in research and development, which is definitely not good for the development of the industry.”


“There is a lack of academicians in the silicone industry and the lack of relevant scientific research talents”. Wang Yuelin also said.


It is recommended that industry companies do resource integration


The entire industry of silicones, after a downturn in previous years, opened a wave of aggressive upswings in August last year. Until entering November, the price was stable and the market gradually returned to rationality. The sharp rise in prices has also greatly benefited domestic listed companies related to the silicon industry.


According to the 2017 annual report of Hesheng Silicon, the company's net profit increased by 132.81% during the period. Hesheng Silicon Industry said that the main demand for the market is generally warming up. The sales prices of industrial silicon and organic silicon, the company's main products, rose year-on-year. In the first half of this year, the net profit of Hesheng Silicon Industry increased by 161.08% year-on-year. The reasons for the company's disclosure are consistent with the above.


Xinan's 2018 semi-annual report shows that the company's net profit for the period was 711 million yuan, a year-on-year increase of 237.2%. The company explained that the main market demand for the overall recovery, the company's two leading products glyphosate, silicone sales prices rose year-on-year.


In view of the development of the industry, in Wang Yuelin's view, the companies engaged in the organic silicon industry in China should strengthen resource integration. "It is recommended to use capital to integrate industries. As a large company, it must spend enough money and energy to do this. ".


"For example, I am a company that is doing upstream in the industry. You are doing downstream, but you are not necessarily more experienced than I am doing upstream. Therefore, to achieve greater development, mergers and integrations are needed." Wang Yuelin said . Wang Yuelin believes that if enterprises strengthen resource integration, they can achieve strong alliances. Resource integration should adhere to horizontal and vertical, especially in the vertical direction. It is necessary to open up the integrated industrial chain. In fact, it is easy to use capital means to open up the industrial chain."


Wang Yuelin also said that large enterprises in the domestic design of the silicon industry must strengthen investment in research and development and innovation. Only in this way can the industry achieve further healthy development.


"Daily Economic News" consulted the well-known domestic silicon-related enterprises and found that Hesheng Silicon Industry showed that its research and development investment during the period was 20,165,800 yuan, an increase of 160.53% over the same period of the previous year. Xin'an shares invested RMB 118 million in the first half of 2018. , an increase of 34.98%.