(April 15, 2026) In recent years, due to the tightening of environmental protection policies, adjustments in the supply of raw materials, and the shifting of demand in various regions, the regional layout of China’s silica gel industry has undergone significant restructuring. No longer characterized by a decentralized and independent approach, the industry is gradually moving towards a new pattern where “key production areas lead the way, specialized regions complement each other, and development occurs in clusters.” Each major production area leverages its own resources, policies, and geographical advantages to engage in differentiated competition, thereby promoting the development of the silica gel industry in a direction that emphasizes high quality and intensification.
As a traditional core region for silica gel production in China, East China (Shandong, Jiangsu, Zhejiang, Fujian) continues to hold a dominant position in the industry due to its well-developed industrial chain infrastructure, convenient logistics facilities, and strong technical capabilities. However, the regional industrial structure is undergoing rapid optimization. Data shows that in the first quarter of 2026, East China accounted for 58% of the national total silica gel production volume, with Shandong and Jiangsu provinces contributing more than 70% of this amount. Unlike in the past, East China is now phasing out low-end and outdated production capacity while focusing on high-end and green transformation efforts. Priority is being given to the development of high-dispersity silica gel, special-purpose silica gel products, and green production technologies.As the province with the highest production volume of fumed silica in China, Shandong is striving to build an integrated industrial cluster covering “raw materials, production, and downstream applications.” Lending on its abundant local resources such as sulfur and soda ash, as well as the strengths of downstream industries like tires and rubber products, fumed silica enterprises in Shandong are accelerating technological upgrades, with a focus on green production processes such as the carbon dioxide acidification method and biomass-based techniques. For example, leading enterprises in places like Weifang and Zibo have established large-scale green fumed silica production bases. Their products are mainly supplied to top domestic tire manufacturers and exported overseas. Thanks to the synergies within the industrial chain, these enterprises hold more than 30% of the domestic high-end fumed silica market. At the same time, Shandong is also promoting the concentration of fumed silica enterprises in chemical parks, enabling shared use of environmental protection facilities and circular utilization of resources, thereby reducing the overall costs of these enterprises.
Jiangsu, on the other hand, is focusing on the field of high-end special fumed silica. Building on its strong foundation in fine chemicals industry, Jiangsu is prioritizing the development of fumed silica products for electronic applications, lithium-ion batteries, and the food and pharmaceutical industries. Chemical parks in cities such as Suzhou, Yancheng, and Lianyungang have attracted many fumed silica enterprises, giving rise to industrial clusters centered around special fumed silica. The products produced in these clusters are widely used in high-end sectors such as new energy, electronics, and medicine.Among them, Yancheng Binhai Chemical Industrial Park has focused on developing projects related to the production of white carbon black using biomass-based methods. By leveraging the abundant rice husk resources in the area, the park has achieved a circular economy model that involves “agricultural waste → white carbon black → by-products.” Due to its low carbon footprint, this product is highly favored by overseas customers, and its export volume has increased by more than 25% year-on-year.
In addition to the traditional core production areas, Central China and Southwest China are emerging as new growth centers in the white carbon black industry, thanks to their resource advantages. The Central China region (Jiangxi, Hubei, Hunan) is leveraging its abundant silicon and coal resources, as well as its convenient inland water transportation facilities, to gradually expand its white carbon black production capacity. It is focusing on developing mid- to high-end general-purpose white carbon black products, which are mainly supplied to downstream enterprises in the tire and rubber industries in Central China, effectively reducing logistics costs. Jiangxi, as the heart of the white carbon black industry in this region, has formed an industrial cluster centered around Jingdezhen and Jiujiang. Relying on its local kaolin resources, the white carbon black products produced here have unique advantages in fields such as rubber reinforcement and coatings, and their production capacity is growing at an average annual rate of over 10%.
The Southwest China region (Sichuan, Chongqing, Guizhou), on the other hand, is becoming a cost-effective hub for the white carbon black industry due to its abundant hydropower resources and low energy costs. This has attracted many companies to establish production facilities there.The southwestern region is rich in hydropower resources, and the cost of electricity there is 20%-30% lower than that in the eastern and northern regions of China. This makes it particularly suitable for the energy-intensive stages of the production process of fumed silica. Currently, several large-scale fumed silica production bases have been established in locations such as Leshan in Sichuan and Changshou in Chongqing. These bases primarily produce conventional precipitated fumed silica, which is mainly supplied to the downstream markets in the southwestern and southern regions of China. Thanks to their cost advantages, these producers have gradually gained a share of the mid-to-low-end market. At the same time, the southwestern region is also progressing with technological upgrades and attempting to establish green production processes, aiming to transform its industry towards higher-end products.
It is worth noting that this regional reconfiguration has also led to differentiated competition and coordinated development among the main production areas. The eastern region focuses on high-end and green technologies, emphasizing its technological and product advantages; the central region leverages its resources and geographical location to offer cost-effective products; while the southwestern region takes advantage of its lower energy costs to compete on price. These complementary approaches help avoid homogeneous competition among the different regions. In addition, these regions are strengthening technical exchanges and cooperation to boost the overall technical level of the fumed silica industry. For example, the green production technologies from the eastern region are being transferred to the central and southwestern regions, helping new producers upgrade their facilities to meet environmental standards.At the policy level, various regions have introduced relevant measures to guide the clustered and standardized development of the silica gel industry. The East China region has issued policies encouraging enterprises to increase investment in research and development, develop high-end special silica gel products, and providing financial subsidies for green technology projects. The Central China and Southwest China regions have introduced preferential policies to attract silica gel enterprises to set up operations there, improve the industrial chain infrastructure, and promote industrial clustering. In addition, these regions have strengthened environmental supervision, forcing enterprises to upgrade their environmental protection facilities and promoting the green and intensive development of the silica gel industry within their territories.
Industry insiders believe that 2026 will be a crucial year for the reshaping of the regional layout of the silica gel industry, with clustered development becoming the mainstream trend. As the differentiated advantages of various major production areas become increasingly evident, the industry will gradually form a regional competitive landscape characterized by “East China leading in high-end products, Central China supporting mid-range products, and Southwest China compensating for costs.” In the future, as downstream demand shifts across regions and the supply pattern of raw materials further optimizes, silica gel production capacity is expected to concentrate even more in areas where raw materials are produced, energy is available, or downstream industries are located, resulting in even more significant regional synergies.
For silica gel enterprises, the choice of regional layout will become a key factor affecting their development.Enterprises need to consider their product positioning and cost control requirements when determining how to allocate their production capacity, and utilize regional advantages to enhance their core competitiveness. For example, companies specializing in high-end specialty silica can focus on developing their operations in the East China region, where they can take advantage of well-established industrial chains and technological strengths to improve the quality of their products. Meanwhile, companies producing mid- to low-end general-purpose silica can target markets in Central China and the Southwest, leveraging their resource and cost advantages to gain a competitive edge in the market. In the future, as regional strategic arrangements continue to be refined, the overall competitiveness of the silica industry will further increase, providing strong support for the high-quality development of China’s fine chemicals sector.
