Fierce Market Competition of Global Silicone Market

The global silicone production capacity has reached 500 000 t / a currently, with an annual sales of about 10 billion U.S. dollars, and more than 80 manufacturers. Nearly half of U.S. and European companies belong to multinational companies and their distribution in accordance with the geography, population, resources, industry trends and market demand, the world is divided into a number of regional markets, and they set up R & D centers in more than 50 major national or central city segments, production factories or offices, its products and services through them to expand to neighboring countries and cities. Japanese and Korean companies step footsteps of the U.S. and European companies, also have expansion into Southeast Asia. Silicone products manufactured by Chinese enterprises have been exported to 34 countries and regions in the world, such as the common silicone baking tray exports. And it expands the overseas market, and improves product market coverage, but has not yet set up offices in overseas.



Great Market Potential of China Silicone Products
Many multinational targeted at Chinese markets because they see a huge demand in the silicone market, so many multinational giants come to open up the market in China. Production of silicone products in recent years, showing a trend of rapid development, especially the silicone bracelet production, specialization tends to refinement and technological progress to promote applications continue to expand in North America, the EU, China, Japan and South Korea, and Southeast Asia is a major technology R & D and market location, capacity is concentrated and has obvious characteristics. There is a huge market demand for silicone products in China, now it is the important stage in the development of the silicone rubber industry, by 2015, China will overtake the U.S. to become the world's largest organic silicon producer and consumer country.

Poor Technology of Silicone Products Production
Though domestic technology has been improved, but there is a big gap between the material consumption, energy consumption and level of technology, especially the quality is still hard to break. Currently, there are 28 silicone manufacturers in China, industry concentration is about 60%, and export is about 12 million tons; the annual sales is 1.25 billion yuan, accounting for about 1/6 of the total sales. The basis of silica gel and powder morphology and performance differences become the direct driving force for the development of diverse applications. Although China's enterprises are actively carry out technical R & D, but R & D investment is less than 3% of sales value, and the United States as the representative of developed countries is generally more than 5%, or even higher, if converted into absolute value, the difference is quite obvious.

The article is come from:http://www.metal-tinbox.com/index.php/silicone-product-proportion-in-international-market.htm