At about 13:50 on July 20, 2025, a fire accident occurred in Bed B of the third synthesis phase of Shandong Dongyue Organosilicon Materials Co., LTD. (stock abbreviation: Dongyue Silicon Materials). Thick smoke rose and billowed like a black dragon at the scene, blocking out the sky and the sun. The fire department promptly dispatched over ten fire engines to the scene. Eventually, the fire was brought under control and extinguished. This accident caused no casualties and no secondary disasters, but the core production units of the company were severely damaged.
Dongyue Silicon Materials is a leading enterprise in China's organosilicon industry, with an annual production capacity of 600,000 tons of organosilicon monomers. Its products are widely used in new energy vehicles, photovoltaics, construction and other fields. The synthetic Phase III workshop where the accident occurred involves a production capacity of 300,000 tons of organosilicon monomers, accounting for half of the company's total capacity. It was a fundraising project at the time of listing. After a preliminary investigation, it was found that the third phase of the synthetic plant, equipment and inventory were damaged to varying degrees. The specific amount of loss is still under assessment. The company has taken out property insurance for the damaged assets and completed the reporting procedures with the insurance company. The work of loss assessment and claims settlement is currently underway.
This accident has had a significant impact on the production and operation of Dongyue Silicon Materials. The company announced that the time for resuming production and operation is still uncertain. It is initially estimated that it will have a certain impact on the operating performance in 2025. To ensure the delivery of customer orders, the company stated that it will take all necessary measures to minimize losses and ensure the stability of the supply chain to the greatest extent.
From an industry perspective, Dongyue Silicon Materials, as a significant player in the silicone market, may experience local supply tightness due to fluctuations in its production capacity. After the news of the fire broke out, the DMC quotations of domestic silicone monomer enterprises were all suspended. The market expects that the prices will rise in the near future due to the sudden reduction in production on the supply side. However, due to the high concentration of domestic silicone industry capacity, leading enterprises have all established redundant capacity scheduling mechanisms. The overall supply resilience of the industry is relatively strong, and the possibility of large-scale price fluctuations is relatively small.
At present, the specific cause of the fire accident is under investigation and verification. Dongyue Silicon Materials stated that it will earnestly draw lessons from this incident, further strengthen management, prevent such accidents from happening again, and fully monitor the progress of the accident investigation and the direct economic losses. If the information disclosure standards are met, it will fulfill its obligations in a timely manner.
