Quzhou's new materials industry recorded a 24.2 percent year-on-year increase in output value in the first half of 2026, contributing 7.8 percentage points to the city's industrial growth.

The output value of Quzhou's new materials industrial chain reached 106.1 billion yuan ($15.79 billion) in 2025, making it the city's first industrial chain to surpass the 100 billion yuan mark. It is now home to more than 140 companies, most of them private small and medium-sized enterprises.

The industry traces its roots to Quzhou Chemical Factory, the predecessor of Juhua Group, established in 1958. It has since expanded from basic chemicals into high-end fluorosilicon materials, electronic chemicals, next-generation battery materials, and advanced functional materials.

Juhua Group has played a central role in the cluster, helping develop a fluorochemical industrial chain that has attracted upstream and downstream businesses. Quzhou's fluorosilicon materials cluster was also named a provincial-level specialized industrial cluster for small and medium-sized enterprises this year.

The sector is expanding further into semiconductor materials, signing an agreement on Aug 12 for a project designed to produce 200 metric tons of photoresist raw materials and 1,900 tons of low-dielectric resin annually.

Local authorities have said first-half growth was concentrated in refrigerants, lithium battery materials, and power and energy-storage batteries, with higher industrial product prices a major driver. Many smaller companies also face high raw material costs and challenging conditions in overseas markets.