According to the disclosure of Sanyou Chemical Company, on December 2, 2022, the company passed the second round of selection of investors in the silicon chemical industry sector of Sanjia Group, who were selected as the restructuring investors in the silicon chemical industry sector of Sanjia Group. The Company intends to obtain the equity and assets of two target companies (i.e. Jiahui Silicon Industry and Jiahui Silicon Chemical Industry) in the silicon chemical industry sector of Sanjia Group by paying cash consideration of no more than 1.05 billion yuan (inclusive) to the manager of Sanjia Group through restructuring plan and restructuring investment agreement.


Sanjia Group's silicon chemical industry sector includes industrial silicon sector and organic silicon sector. Among them, Jiahui Silicon Chemical Co., Ltd. is the main business of the organic silicon sector, which is located in Chahar Industrial Park, Ulanqab City, Inner Mongolia, covering an area of about 550000 square meters. The overall plan is based on 200000 t/a methyl chlorosilane mixed monomer, 5000 t/a white carbon black, 75000 t/a ionic membrane caustic soda and its auxiliary auxiliary production units. In November 2014, 80000 t/a methylchlorosilane mixed monomer, 50000 t/a ion-exchange membrane caustic soda and its auxiliary auxiliary production units were built. After the completion of the project, production was stopped after a period of trial production in 2015.


The industrial silicon sector, with Jiahui Silicon Industry Company as the legal entity, is located in the magic industrial park of Siziwang Banner, Ulanchap City, Inner Mongolia, covering an area of about 430000 square meters. The general construction plan is 200000 t/a chemical silicon (16 27000 KVA industrial silicon electric furnaces and supporting public facilities) production project. The project is constructed in two phases. The first phase of 50000 t/a industrial silicon smelting project was completed in 2010. Four 27000KVA industrial silicon ore smelting furnaces have been built, with an annual production capacity of 50000 tons. Meanwhile, 100000 t/a public and auxiliary facilities and supporting production workshops have been completed. The first phase of the project was put into operation in 2011. The main product is chemical grade industrial silicon. Due to the rupture of the capital chain, production was stopped in 2015.


The announcement said that after the acquisition of relevant assets, it can develop in coordination with Sanyou Silicon Industry, which is conducive to improving the company's silicone industry chain and realizing the integrated development of upstream and downstream of the silicone industry.


It can be seen from Sanyou's acquisition of Sanjia that integration has been the consistent standard configuration of monomer plants at present. When there are more and more implementers, it means that the market will shift from single cost to comprehensive cost, which will profoundly affect the development pattern of various silicone enterprises.


Back to the current market situation, Shandong monomer factory's 100 inflation test showed up again yesterday. I wonder if it has fallen too long. Everyone is immune to inflation test and has no sense! At present, the main task of the mainstream monomer plants is still to deliver goods. Due to the different levels of stock reduction, the margin space for each product transaction has been differentiated. Take raw rubber as an example. Last week, the discount was the strongest. The price of 5-10 cars was once as low as 17000 yuan/ton, which stimulated some rubber mixing plants to enter the site to stock up. This week, some monomer plants have converged on the promotion of raw rubber. At present, the transaction price of mainstream raw rubber is 17500 yuan/ton, and that of mixed rubber is 15500-16500 yuan/ton.


In the short term, the rubber mixing enterprises have to withdraw funds while considering stocking up. It is only the middle of December. The scattered Spring Festival holiday notices have appeared in the circle of friends, and the demand at the end of the year is basically difficult to improve. It is uncertain how much the demand recovery will be realized after the year. Some rubber mixing plants with large inventories are still relatively cautious about stocking up.