On December 8, 2022, Elkem Silicones, the world's leading integrated silicone manufacturer, officially held a groundbreaking ceremony for its 35kt/a Specialty Sealant and MQ Silicone Resin Project at its Xinghuo Production Base in China. The settlement of the Project in China not only reflects the confidence of Elkem Silicones in developing the specialty sealant and silicone pressure-sensitive adhesive (PSA) business in China and the rest of Asia Pacific, but also further enhances the competitiveness and influence of Elkem Silicones in the industry.

As the world's largest market for sealant production and consumption, in the future, China's demand for specialty sealants will continue to grow at a high rate with the improvement of residents' consumption level and the enhancement of their awareness of health, sustainability, and safety. Especially in the construction and energy markets, there will be huge potential for the development of green sealants as a consumer upgrade alternative. After its completion, this specialty sealant project is expected to reach an annual capacity of 35 kt.

"The construction of the specialty sealant project is another significant investment by Elkem Silicones to accelerate the transformation and upgrading of sealant products in the Asia-Pacific region and achieve high-quality development. It is another important step for Elkem Silicones to promote ESG strategy and contribute to achieving the goal of carbon neutrality. This project will give strong support to Elkem's global business growth demand in the construction, new energy, electronics, and health markets over the next three years," said Larry Zhang, Senior Vice President of Elkem.

Moreover, Asia Pacific is a major demand market for silicone PSA. With confidence in the continuous growth of market demand, Elkem Silicones insists on being innovation-driven and continues to develop specialty products for downstream applications, providing a solid technical and raw material guarantee for the development of the global PSA business. MQ silicone resin, as the reinforcing agent and tackifier of silicone PSA, is a key raw material for various downstream products of silicones. When applied to addition-type silicone PSA, it is suitable for various types of protective films in the high-end electronics industry, such as optical protection, functional component protection, die-cutting process protection, etc. When applied to peroxide-type silicone PSA, it is applicable to all kinds of special tapes, such as high-temperature-resistant PI tape, red-green electrostatic tape, electromagnetic shielding insulating tape, and puncture-resistant mica tape.

The MQ silicone resin project is a milestone of far-reaching significance. Upon the official production of the project, Elkem Silicones will lead the industry in technology, process, and product. By effectively coordinating upstream and downstream resources to improve the competitiveness and influence of Elkem Silicones in the industry, the project, by optimizing the production process, will greatly shorten the production time and significantly shorten the delivery time to customers in the Asia Pacific region, thus improving the reliability of supply. In addition, through strict control and reduction of emissions, the generation of waste will be greatly reduced to achieve win-win economic and environmental benefits.

"This investment fills Elkem Silicones's gap in MQ silicone resin capacity in Asia Pacific and once again demonstrates the consistent service commitment of Elkem Silicones in Asia Pacific. By further opening up the chain of downstream specialty products, Elkem Silicones will be able to provide raw materials for the next five years of growth in each specialty product business," said Sandy Chen, Vice President of Asia Pacific for Elkem Silicones.?