ZhengJiu New Materials: Building a "Central China Silicones Industry Cluster," and Becoming the Dream Chasers of the National Silicones Sector

2025-03-17


In the industrial sector, there’s a remarkable substance—organic silicon, commonly known as "industrial MSG." Organic silicon materials are a vital component of the nation’s strategic emerging industries in the new materials sector, serving as key high-tech foundational materials that receive significant government support. They are widely used across fields such as construction, healthcare, aerospace, and chemical engineering, making them an essential industrial raw material.

Hubei ZhengJiu New Materials Technology Co., Ltd. is a subsidiary controlled by Hubei Xinyuanyuan Bioengineering Co., Ltd., serving as a vital link in Xinyuanyuan's internal circular economy and external expansion strategy. The company primarily manufactures and markets 15 varieties of organosilicon products, with the first-phase plan focusing on six key products—including coupling agents, crosslinking agents, and silicone oil products. Building on this foundation, the second phase will expand the product portfolio further, enhancing the added value of existing offerings. Leveraging Xinyuanyuan’s strengths in management, technology, capital, and raw materials (such as liquid ammonia and methanol), the company aims to establish a closed-loop industrial system, producing nine additional derivative products under the butanone oxime-based crosslinker series. Once the project reaches full capacity, it will annually produce 50,000 tons of organosilicon products, generating an annual output value of 1.2 billion yuan, contributing 180 million yuan in annual profits and taxes, and creating over 200 new jobs.

Internal Cycle: Reducing Costs, Enhancing Efficiency

ZhengJiu New Materials is a subsidiary controlled by Hubei Xinyuan Bio-Engineering Co., Ltd. Industrially, ZhengJiu New Materials complements Xinyuan, leveraging Xinyuan's demand and processing capabilities for by-products generated during organic silicon production—effectively addressing the by-product disposal challenges that most organic silicon companies face. Meanwhile, the liquid ammonia and methanol produced by Xinyuan serve as essential raw materials for ZhengJiu's manufacturing processes, significantly reducing transportation costs and minimizing storage risks. By establishing a sustainable, internally driven supply system within both companies, ZhengJiu and Xinyuan have created a self-sustaining circular economy between them, enabling a qualitative leap in the companies' competitive edge.

Extravagant Development, Clustered Energy Accumulation

In recent years, Gong'an County has leveraged its advantages in the chemical industry by stepping up project construction and park development, guiding the traditional chemical sector toward a transformation into new energy and advanced materials, thereby driving high-quality growth of the county's chemical industry.

New Source is the largest international-scale hydrolyzed amino acid production enterprise, focusing on the R&D, manufacturing, and sales of amino acids and fine chemical products. In 2021, it invested in and established Hubei ZhengJiu New Material Technology Co., Ltd., which specializes in the research and production of organosilicon materials. These organosilicon product lines serve as essential raw materials for various industries, including civil construction, military aerospace, chip electronics, and aerogel insulation. Currently, New Source has forged extensive and close business partnerships with renowned enterprises such as Yichang Xingfa Group, Hesheng Silicon Industry, and Tangshan Sanyou.

Against the broader backdrop of delineating the "Three Zones and Three Lines," every inch of land in chemical industrial parks is incredibly valuable. Moving forward, the development zone will take chemical projects as its entry point, adopting a strategy of "chemical projects + manufacturing projects" to drive the comprehensive growth of the manufacturing industry.