CHINA may turn into a net exporter of siloxane in 2010 as few major new capacities have been announced elsewhere by that time, a Dow Corning Corp vice president said yesterday.
Siloxane is used in the manufacture of silicones which can be used in applications for virtually every industry, ranging from automotive and electronics to construction and textiles.
"Right now there's lots of siloxane imports in China. But in the future, almost no capacity had been announced elsewhere except for China," said Jean-Marc Gilson, who is also Asia president for Dow Corning.
The US company, equally owned by Dow Chemical Co and Corning Inc, is a leading player in the world's silicone industry.
Dow Corning is building a 200,000-ton-a-year plant for siloxane and fumed silica in Zhangjiagang, Jiangsu Province, with German partner Wacker Chemie AG. Construction will finish in 2010.
Global demand for silicone products is growing at six to eight percent annually, with emerging markets experiencing much faster growth. And for China, the pace could be two or three times its economic growth, Tokyo-based Gilson told reporters in Shanghai.
This could be driven by rising demand from industries like solar energy as China addresses environmental issues, prompting opportunities for companies like Dow Corning to make more products with higher added value.
Gilson said newly added capacities in China will turn it into a net exporter of the commodity in 2010 or 2011, with production capable of supplying other emerging markets like India, East Europe and South America.