Silicones are a vital ingredient in a large and diverse number of final applications. Silicones may be supplied directly to producers of final products but more often they pass through several stages of what is known as the ‘value chain'. This means that their routes to end markets may be complex, involving several interdependent stages. Firms in each successive level progressively add value by transforming or modifying basic materials that eventually become products for final sale.

The diagram below shows the way the value chain works. This is a highly simplified representation of a system which, in real life, is sophisticated, complex and covers many more products than the examples shown.

Value and Added Value: the Example of Silicone Sealants

Silicone sealants are a large family of products. They range from sophisticated adhesives for transport and
advanced architecture to universal applications to control water and moisture. One of these is bathroom sealants.

The diagram below shows how each stage in the value chain adds value to arrive at final products. This is a highly simplified scheme and the prices given are for illustration only. They have no bearing on actual market conditions.

Note:
*In practice two or all the different stages may be undertaken within one firm.