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On the evening of September 8, Hesheng Silicon Industries announced two expansion plans, with a total investment of 7.615 billion yuan intended for the development of industrial silicon and silicone projects. Both projects are to be located in the Stone Industry Park in Shanshan County, Xinjiang. Hesheng Silicon Industries plans to invest in and construct the “Phase II of the Coal-Power-Silicon Integrated Project, with an annual output of 400,000 tons of industrial silicon” through its wholly-owned subsidiary, Dongbu Hesheng. The total investment amounts to 4.084 billion yuan. The construction scope includes 32 electric furnaces each with a capacity of 33 MVA, as well as supporting facilities such as desulfurization and denitrification equipment, environmental protection facilities, and auxiliary power transformation and distribution equipment. The construction period is expected to be two years. In addition, Hesheng Silicon will also invest in the \"Phase 3 of the coal-electricity-silicon integrated project, involving an annual production capacity of 200,000 tons of siloxanes and related downstream processing facilities\", through its wholly-owned subsidiary Xinjiang Hesheng. The investment amount is 3.532 billion yuan, with a construction period of 2 years. Hesheng Silicon Industry stated that the location selection for the siloxane project takes into account the availability of local resources, makes full use of the supporting facilities available in upstream and downstream facilities, facilitates management, reduces investment and labor costs, and lowers product costs to enhance product competitiveness. The industrial silicon project will also leverage the company’s integrated synergy advantages within the industrial park in Xinjiang, further capitalizing on its technological strengths and overall scale advantages. Since the second half of 2020, global demand for silicone products has continued to rise. Coupled with production cuts and plant closures overseas, the spot supply of silicone raw materials has remained tight over a long period. Additionally, the ever-increasing prices of raw materials used in the production of silicone monomers have driven the market price of silicone DMC to new highs. The persistent rise in raw material costs has placed immense pressure on downstream silicone enterprises, severely affecting the healthy development of the industry. Hesheng Silicon Industry remains optimistic about the future demand for silicon raw materials. In the silicone sector, in the long run, apart from the continuous growth in demand for silicone raw materials from traditional downstream industries, the development of emerging industries such as photovoltaic and new energy sectors, environmental protection industries, construction of ultra-high voltage and extra-high voltage power grids, smart wearable materials, 3D printing, and 5G all present new growth opportunities for silicone demand. As a result, the market demand for silicones is expected to maintain a rapid growth trend. In terms of industrial silicon, given the rapid growth in photovoltaic installations over the next few years, new polysilicon production capacity will be gradually brought online. The development of the aforementioned industrial silicon projects will enable the company to further expand and strengthen its industrial silicon business. This will effectively ensure a stable supply of raw materials to meet the future growing demand from downstream industries, alleviate the operational pressures faced by enterprises in these sectors, and promote the healthy and sustainable development of the industry.