Chemicals: Promoting transfer due to "industry" conditions

Since the beginning of this year, the leaders of the Central Government have frequently rushed to local inspections, and the speeches have reflected the high importance attached to the structure and mode of transfer. General Secretary Hu Jintao even called "transforming the mode of economic development" a tough one. However, specific to the chemical industry, exactly how to adjust, where to turn? At present, many companies in the industry are still in their hearts. Recently, the reporter interviewed a number of industry experts, industry experts, and related chemical companies on the issue of adjusting the structure and changing the development mode of several typical traditional chemical industries. Although each of them has different opinions and different models, they all stressed that they must be satisfied. Market demand, increase the scale of the industry, improve the competitiveness, due to "industry" conditions.
Sun Weishan, deputy secretary-general of the China Petroleum and Chemical Industry Association, said that because of the extensive development model based on scale expansion for a long time, the quality of economic growth in the petrochemical industry is not high, and the foundation for achieving sustainable development is not solid, and after years Accumulation, deep-seated contradictions within the industry have become prominent, and there is an urgent need to accelerate structural adjustment, promote industrial upgrading, change the mode of growth, and take the path of circular economy development. This is an inherent requirement for the industry to achieve good and fast development.
Industry expert and petrochemical association expert Yang Weicai said that the international financial crisis is only a precipitating factor. Even if there is no crisis, the problem of unreasonable structural accumulation in the chemical industry over the long term will be further revealed. He believes that the impact of the international financial crisis on the industry economy is essentially an impact on the development approach. In the past we relied too much on investment and exports to stimulate economic development. This development approach must be changed.
At present, many chemical companies are more concerned about how to adjust, where to turn, where is the starting point? Yang Weicai's point of view is that there are many sub-sectors in the chemical industry, and the problems faced by various industries are different. Therefore, it is determined that there will be no unified model for the structure adjustment and transfer mode. He reminded companies that companies must reflect economies of scale and cost advantages in transforming their development methods. Products must meet market demands. He believes that in the future, companies should work harder in the domestic demand market.
Sun Weishan believes that the effective means to adjust the structure and transfer mode of the traditional chemical industry is to eliminate backward production capacity. The only difficulty is that what is the standard for backward production capacity is still unclear. He told reporters that the Ministry of Industry and Information Technology is currently paying close attention to the introduction of guidelines for accelerating the elimination of outdated production capacity and formulating sub-sectoral implementation plans. Petrochemical Association will also actively cooperate with this work. Sun Weishan said that with clear guidance, the outdated production capacity of the chemical industry will go smoothly.
It is understood that the calcium carbide and coke industries were the first to be included in the Ministry of Industry and Information Technology to eliminate the list of backward production capacity. At present, there have been positive results. According to the statistics from the Ministry of Industry and Information Technology, according to the target of eliminating 2 million tons of backward production capacity of calcium carbide during the “Eleventh Five-Year Plan” period, as of now, the cumulative outdated capacity of calcium carbide has been 2.87 million tons, and the elimination task has exceeded 870,000 tons. Statistics also show that in accordance with relevant requirements, during the “Eleventh Five-Year Plan” period, it plans to phase out 80 million tons of outdated coke production capacity. Up to now, it has eliminated a total of 82.54 million tons of coke, and has completed over 2.54 million tons of obsolete tasks. Both of these traditional industries have achieved a change in their development methods by eliminating backward production capacity. The industry as a whole is developing in the direction of large-scale enterprises, large-scale installations and production automation. Xu Guangcheng, an advisor to the China Coking Industry Association, also suggested that in the future, coking companies and iron and steel enterprises should be vigorously promoted in a mutually beneficial and win-win road. He believes that the current excess coke capacity, pure coking companies worry about the sale of coke products; while some steel companies are worried about the lack of coke, to build a coke oven, more investment, repayment difficult. Therefore, it is advisable for steel companies to unite with independent coking companies to supply coke from coking plants so that they can achieve a win-win situation.
As a typical traditional industry, the chlor-alkali industry urgently needs to adjust the structure and transfer mode. According to Zhang Wenlei, secretary general of the China Chlor-Alkali Industry Association, the chlor-alkali industry can be transferred in three ways: First, through complementary mergers and acquisitions between enterprises to obtain complementary advantages in resources, to solve the current low level of industrial concentration in the chlor-alkali industry, product structure Unreasonable and other fundamental issues are of great significance. He believes that mergers and acquisitions among enterprises may become an important manifestation of the redistribution of industry resources this year. Second, with the help of low-carbon policies to promote industrial restructuring, a series of industrial policies centered on “low-carbon” will put new demands on the industry’s traditional production, supply, and sales, resulting in further improvement of the company’s operating environment. And social costs, which play an important role in promoting the industrial restructuring of the chlor-alkali industry and realizing the harmonious development of industries, enterprises and society. Third, use financial capital market tools to resolve risks. Since 2009, more and more financial capital has entered the chlor-alkali industry successively for various purposes such as asset maintenance and value increase, which will have a far-reaching impact on the domestic chlor-alkali industry's development pattern; the country’s financial and credit policy is even more demanding on chlor-alkali funds. The company has extremely important significance. Therefore, how to use financial capital market tools to resolve corporate market risks and ensure the healthy development of enterprises has become a practical issue that needs attention in the course of business operations this year and beyond.
So where is the entry point for the phosphate fertilizer industry? Zhang Jun, Deputy Director of Strategic Development of Yuntianhua Group Co., Ltd., believes that the first step is to build a strategic alliance and seek a win-win situation. Select industry companies with development strength to establish effective strategic alliances, cooperate in price determination, market division, information communication, and policy support, and jointly promote industry consolidation. The second is to do a good job of energy-saving emission reduction, the development of circular economy, extending the industrial chain and improving economic efficiency. For example, to seize the new rural construction and the state's historical opportunity to eliminate clay bricks, we will focus on doing a good job of all kinds of new-type building materials such as phosphogypsum; we will do a good job in the purification of wet-process phosphoric acid and the localization and large-scale development of kiln-process phosphoric acid technologies and equipment, and extend medium and high-grade phosphoric acid. And phosphate industry chain, improve economic efficiency and so on.

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