Benefiting High-Quality Silicone Capacity Optimization
Keywords: Petrochemical industry upgrade, equipment renovation, silicone capacity elimination, policy support, industry concentration
On April 7, 2026, the Ministry of Industry and Information Technology of China, together with six other national ministries and commissions, jointly issued a medium- to long-term action plan for the renovation and upgrading of outdated and high-risk petrochemical equipment, with implementation deadlines set before 2029.
The policy focuses on safety production, energy efficiency improvement, and green low-carbon development. It requires comprehensive upgrading or elimination of petrochemical production devices that fail to meet safety, environmental, and energy consumption standards.
For the silicone industry:
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A number of small and medium-sized silicone monomer and raw material production lines with outdated technology, high energy consumption, and weak environmental protection performance will face accelerated withdrawal
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Domestic overall silicone supply will tend to be more concentrated and controlled, supporting stable and reasonable product prices
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Leading silicone enterprises with advanced production technology, complete environmental protection facilities, and large-scale integrated industrial chains will gain clearer competitive advantages
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Industry concentration will further increase, helping the sector move away from low-price competition and toward high-value development
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