September 27, 2024 – Xin’an Corporation Unveils Strategic Acquisition of Quartz Sandstone Mine in Yunnan
In a move aimed at fortifying its strategic position, Xin’an Corporation announced yesterday that its board of directors has approved a resolution to acquire a quartz sandstone mine in Yunnan province, with an estimated reserve of no less than 100 million tons. The acquisition, valued at nearly 130 million yuan, underscores the company’s commitment to securing a stable supply of raw materials for its silicon-based industries while significantly reducing outsourcing costs.
This strategic acquisition is a pivotal step in Xin’an’s deployment to perfect its industrial silicon supply chain and enhance its competitiveness within the industry. Since its inception in 1965, Xin’an Corporation, also known as Zhejiang Xin’an Chemical Group Co., Ltd., has evolved into an industry giant with 76 subsidiary companies, particularly excelling in the realms of organic silicon and glyphosate in China. Leveraging a globally pioneering circular economy model, the company transforms chloromethane, a byproduct of glyphosate production, into a raw material for organic silicon production, thereby constructing a complete industrial chain from silicon mining to downstream product processing around organic silicon monomer synthesis.
Moreover, Xin’an has forged partnerships with several renowned international enterprises. Its joint venture with Momentive, Zhejiang Xin’an Momentive Silicone Co., Ltd., boasts an annual production capacity of 200,000 tons of organic silicon monomers and 52,000 tons of high-performance organic silicon new materials. Another collaboration with Evonik, Evonik Xin’an (Zhenjiang) Silicon Material Co., Ltd., focuses on producing high-value-added fumed silica. This integration of advanced technology and a circular industrial chain further consolidates Xin’an’s leading position in the industry.
Currently, Xin’an’s organic silicon monomer capacity reaches 550,000 tons per year, with an industrial silicon capacity of 300,000 tons per year. The company also possesses high-grade silicon mines with a reserve of 100 million tons and stands as one of the few enterprises in the industry capable of covering the entire range of downstream organic silicon products.
In terms of project development, Xin’an is continuously advancing its initiatives. In December 2023, the company raised 1.8 billion yuan through a private placement to fund the relocation and enhancement of its subsidiary, “Zhejiang Kaihua Synthetic Material Co., Ltd.,” including a 35,600-ton-per-year high-purity polysiloxane project. Simultaneously, the silicon tetrafluoride special gas project, jointly constructed with its partners, is progressing smoothly and is expected to be completed and put into operation in the latter half of 2025. Furthermore, Xin’an is actively exploring the application of silicon tetrafluoride, a byproduct of silane, in the new energy sector, such as converting it into thermal insulation materials, to further expand its downstream market.