Sinopec Includes Ethyl Silicone Oil in Direct Procurement, Accelerating Domestic Substitution

In a development with significant implications for China's specialty chemical industry, Sinopec's materials procurement e-commerce platform published a notice on April 21, 2026, confirming the direct procurement of ethyl silicone oil for its subsidiary Beijing Xingpu Fine Chemical Technology Development Co., Ltd..

The announcement confirms that Harbin Longjia Economic and Trade Co., Ltd. has been awarded the supply contract. While the procurement volume was not disclosed, the significance lies in the signal sent: a major state-owned enterprise has formally recognized ethyl silicone oil as a strategically relevant material warranting direct supply chain management.

This move aligns with broader trends in China's industrial policy, where SOEs are accelerating the localization of key material supply chains amid geopolitical uncertainties. Industry analysts anticipate that Sinopec's direct procurement model may be adopted by other SOEs in sectors such as automotive, aerospace, and electronics manufacturing.

For ethyl silicone oil producers, the path to SOE contracts requires more than competitive pricing. Suppliers must demonstrate robust quality management systems, production stability, and technical service capabilities to meet rigorous enterprise qualification standards.