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Today and Tomorrow:
Petrochemical Industry in Chinafrom the Viewpoint of Environmental Protection Storm
CNCIC ConsultingVicky Su
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Today and tomorrow
CNCIC is an authoritative chemical industrial information service
& consulting institute in China, and focuses on chemical
industrial market research for nearly 60 years
1© 2019 CNCIC Consulting. All rights reserved
Established
Economic
Information Center
of the Ministry of
Chemical Industry
Established Scientific &
Technological Information
Research Institute of
Ministry of Chemical
Industry
Merged to
establish
CNCIC
Transferred
to enterprise
1959 1984 1992 1999
─ Research Institute of Industry Planning
─ Research Institute of Industry Economics
─ China National Petrochemicals Information Center
─ China National Polymers Information Center
─ China National Fertilizer Information Center
─ China National Pesticide Technology Economic
Development Center
─ China National Silicon &Fluorine Material Information
Research Center
Professional research platforms
─ China International Exhibition Center of Chemical
Industry
─ Annually Organize and hold 50+ high-quality chemical
conferences & exhibitions in China and abroad
─ China Light Hydrocarbons Utilization Association
─ China Fine Chemical Material and Intermediate
Association
Broad industrial communication platforms
─ CNCIC Database including Chinese Petrochemicals
and other commodity chemicals
─ CNCIC Price Index
Reliable internal database
– China National Library of Engineering-Chemical Branch
– Member of NSTL (National Science and Technology
Library)
The largest chemical resource center in China
2019
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Today and tomorrow
CNCIC Consulting provides the most reliable market insight and
actionable recommendations to improve performance at every
level of your organization and develop effective strategies in a
dynamic market
2© 2019 CNCIC Consulting. All rights reserved
Customized In-depth Market Report
Strategic PlanningEnterprise strategy
planningIndustrial park
planning…
Market Research
Market size and
segmentation
Value-chain
analysis
Competitive intelligence
& benchmarking
Market entry
opportunities
Manufacturing
cost analysis
Investment & financing consulting
IPO
report
Pre-due diligence &
due diligence
Dumping &
Anti-dumping report…
Engineering
ConsultingFeasibility study
report
Fund application
report
Post-evaluation
Report…
Product/product chain
strategy planning
Technology
evaluation
Customer needs
and satisfaction
Regulatory
analysis
Acquisition/alliance
evaluation
Site
selection…
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● CNCIC Consulting have a long-term tracking and rich experience in environmental protection industry
● Recent achievements in Environmental Protection Industry
─ Customer Study on Devices of Emissions Control Technology
─ In-depth Analysis on VOC Policy and Regulation in Fine Chemical Industry in China by Province
─ Technology Assessment on Waste Gas Treatment in Refinery Plants in China
─ Market Study on Sulfur Recovery Technology in Petrochemical and Coal Chemical Industry in
China
─ Market and Technology Assessment on Environmental Protection Catalysts in China
─ Policy Analysis on “The Action Plan for Prevention and Treatment of Air & Water Pollution” in
China and its effect on Target Chemicals
─ Policy and Regulation Analysis and Forecast on Environment Protection in China
─ Market Study of Product and Service on Industrial Wastewater Treatment in China
─ Market Assessment on Water Treatment Membrane in China
─ Competitor Intelligence on Water Treatment Equipment Manufacturers
─ Technology Evaluation and Supplier Assessment on Adsorbents in China
● National Energy-saving and Emission Reduction Center (under CNCIC HSE Department)
– Energy audit
– Energy saving planning
– Energy efficiency standardization
– Carbon resource management
– Clean production
EXPERIENCE IN ENVIRONMENTAL PROTECTION
© 2019 CNCIC Consulting. All rights reserved 3
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● Conference and Exhibition Platform in Environmental Protection Industry
─ Transformation and Challenge of Chinese Petro & Chemical Industry under Environmental
Protection ‘New Normal’
◆Solid Waste Pollution Prevention and Toxic Chemical Control—— Professor of Engineering
and Director of the Audit and Registration Department, Solid Waste and Chemicals
Management Technology Center, the Chinese Ministry of Ecology and Environment (环境保护部固体废物与化学品管理技术中心)
─ China Petrochemical Energy Saving and Emission Reduction Technologies Conference
─ China Petrochemical Production Safety and Control Technology Conference
─ Energy Consumption Standard of Petroleum and Chemical Industry Seminar
─ China International Industrial Water Treatment Conference
─ China International Water Treatment Chemicals Exhibition
─ China International Industrial Water Treatment Technologies and Equipment Exhibition
─ China Chemical Standardization Forum
─ China Chemical Regulation Conference
EXPERIENCE IN ENVIRONMENTAL PROTECTION
© 2019 CNCIC Consulting. All rights reserved 4
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● Based on our profound understanding and real-time update on Chinese polices, especially
policies related to the petroleum and chemical industry, and our long-term tracking and
research on various chemical sectors, CNCIC recently released two popular reports and the
hot-topic seminar as below.
© 2019 CNCIC Consulting. All rights reserved 5
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© 2019 CNCIC Consulting. All rights reserved 6
Coming
soon
Coming
soon
Transformation and upgrading of Chemical Industry Parks in China under continuous
pressures of safety regulations
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7© 2018 CNCIC Consulting. All Rights Reserved.
China: under change
Tightened
regulations
Stricter
enforcement
Shut-down, removal and
upgrading of plants
Goal is to have economic
development
with higher efficiency and
added value
• During 2016-2018 the Chinese Government made unprecedented efforts to unfold
nationwide environmental supervision and triggered a round of de-capacity storm
Supply-side
reform
Reduced number of
Chemical Industry Parks
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8© 2018 CNCIC Consulting. All Rights Reserved.
The total GDP of Beijing-Tianjin-Hebei, Yangtze River Economic Belt, and Pearl River
Delta accounts for 63% of China’s GDP
GDP in main economic zones
GDP
8.2 Trillion
GDP
37.4 TrillionBeijing-Tianjin-Hebei
Yangtze River Economic Belt
Pearl River DeltaBeibu Gulf
GDP
6.7 Trillion
GDP
0.65 Trillion
• Beijing-Tianjin-Hebei has the highest percentage of
tertiary industry in China
• Increasing speed of tertiary industry is higher than
primary and secondary in three major economic area
• Yangtze River Belt accounts for 45% of China’s GDP
Shandong
7.6 Trillion
Hebei
3.6 Trillion
Jiangsu
9.3 Trillion
Zhejiang
5.6 Trillion
Sichuan
4.1 Trillion
Guangdong
9.7 Trillion
Note: There is not data for year 2017 of Pearl River Delta and Beibu Gulf yet (2016 data marked as purple)
1
2
3
4
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9© 2018 CNCIC Consulting. All Rights Reserved.
Changes of environmental protection laws and regulations: China is vigorously boosting a system
with environmental vertical management and environmental inspection as the core
• China revised and added a large number of environmental protection laws and regulations in recent years
• A large number of documents such as industrial plans related to environmental protection were issued
• In terms of environmental supervision system, China is vigorously boosting a system with environmental
vertical management and environmental inspection as the core
2013
2014
2015
2016
2017
Issue “Action Plan for the Prevention and Control of Atmospheric Pollution”
Issue““Methods for Assessing the Implementation of the Most Stringent Water Resources Management System”
Revise“the most strictest”Environmental Protection Law
Issue“Strengthening Environmental Supervision and Law Enforcement”
Issue “Methods for Assessing the Implementation of the Prevention and Control of Atmospheric Pollution ”
Revise“Prevention and Control of Atmospheric Pollution”
Issue“Action Plan for the Prevention and Control of Water Pollution”
Revise “Law of the People’s Republic of China on the Protection of Marine Environment”
Revise “Law of the People’s Republic of China on Water”
Revise“Law on Energy Conservation”
Revise“Prevention and Control of Environmental Pollution by Solid Wastes”
Issue “Law of the People’s Republic of China on Environmental Protection Tax”
Issue “Law of the People’s Republic of China on Environmental Protection Tax””
Revise “Law of the People’s Republic of China on the Prevention and Control of Water Pollution”
Issue“Catalogue of Pollutant Discharge Permit Classified Management at Stationary Polluting Sources”
Issue “Methods for the Management of Soil Environment at Polluted Plot”
Issue“Scheme for the Second National Census to Polluting Sources”
Issue“Work Scheme for the Prevention and Control of VOCs Pollution during the Thirteenth Five-Year Plan Period”
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Chemical Industrial Parks started the reform since 2016 (beginning of
the 13th FYP) and the actions will continue in the future
© 2018 CNCIC Consulting. All rights reserved 10
● Actions taken by the Chemical Industrial Parks during the 13th FYP period
Implement the
strictest
standard
Reduction ratio
PollutantRequired by the
Central government
Required by
Shandong
Total SO2 emissions 15% 27.0%
Total nitrogen oxide emissions 15% 27.0%
Total chemical oxygen demand 10% 11.7%Total ammonia nitrogen
emissions 10% 13.4%
▪ All provinces and municipalities have stepped up efforts to supervise and inspect the
environmental compliance of industrial parks. The local environmental protection bureau
dispatches a safety and environmental protection unit/team to every local industrial park to
conduct daily environmental inspections on the park.
Stress
monitoring and
supervision
● All the provinces and
municipalities have
formulated more stringent
environmental protection
indicators than the 13th
Five-Year Eco-environmental
Protection Plan
▪ To develop reduce wastewater discharge, implement centralized treatment of wastewater, and
even develop toward the wastewater-free direction. They shall also engage in recycling of waste
solids.
Develop
circular
economy
▪ All provinces and municipalities have started to clean up polluting enterprises, shut down
outdated production capacity and promote clean production. They require polluting enterprises to
carry out technological transformation to reduce the energy consumption and pollutant emissions.
Raise the bar
for new entry
thresholds
▪ All industrial parks have basically achieved the centralized treatment of wastewater, the
centralized incineration of waste gas and the centralized recovery of waste residue.
Invest in waste
management
facilities
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The environmental protection storm started in 2017 suggests all chemical
manufacturers will be under pressure
© 2018 CNCIC Consulting. All rights reserved 11
营业收入
Beijing-Tianjin-Hebei
Suspend Approval,
Delist,
Consolidate
Decrease Number
Of Industry Parks,
New Projects
Should Enter Parks,
Strengthen
Inspection
Shut Down 2077
Plants,
Rate Of Entering
Parks Up To 50%
Voc Treatment,
Cancel 61
Hazardous
Chemical Ent.
Shudown
RelocateShutdown Away City And Into
Industrial Park
Limited
Approval
Shandong Jiangsu Zhejiang
Hubei Hunan Sichuan Anhui
● The central and local governments have issued a series of policies to facilitate the transformation of
the industry to increase profit and reduce hazardous chemicals
● For example, new projects may not be approved and some existing projects/plants may need to
relocate
For example,
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In the next five years, petrochemical, coal-fired power plant and
industrial coating industries will be the focus of three-wastes
treatment
12
Waste solids
● Waste solids mainly come from mining, petrochemical and power
industries. In the future, iron & steel and chemical industries will be
the focus of waste solid treatment
● Industrial solid waste recycling will be the future mainstream
treatment mode
– Incineration technology will gradually expand its proportion
R & P Coal chemical Coatings Electronics Pharmaceutical
Waste
alkali
residue
Neutralization
Slag, etc.
RecyclingWaste
coatings
incinerati
on
Waste
cables
Dismantling
/recycling
Waste
residueIncineration
LandfillLandfill
Waste
glass,
waste
paper
,etc.
Incineration or
landfill
Waste
sludge
Sludge
treatmentWaste clay Recycling
Waste
catalystRecycling
Oil sludge,
residue
Incineration &
reuse
Waste
solventIncineration
Waste acid,
waste lyeRecycling
Waste oil Recycling Waste solventHazardous
waste
Waste
Sludge
Sludge
treatmentWaste sludge
Sludge
treatment
Main
wastes
Treatment
method
© 2018 CNCIC Consulting. All rights reserved
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As of 2017, China had ~600 chemical industrial parks;
more than 60% are located in East and South China
© 2018 CNCIC Consulting. All rights reserved 13
● The leading three provinces with higher number of chemical parks are Jiangsu province (with 63 chemical
parks), Shandong province (52 parks) and Hubei province (46 parks)
– By 2018, the number of chemical parks in Shandong and Hubei are expected to decrease
Heilongjiang
10
Jilin 2
Liaoning
15
Inner Mongolia
39
Tianjin 3
Beijing 1
Hebei
17Shandong
52
Jiangsu
63 Shanghai
2
Zhejiang 10
Fujian
7
Guangdong
17
Hainan 2
Xinjiang 26
Qinghai 3
Sichua
n 16
Chongqin
g 5
Yunnan
6
Guizhou
22
Guangxi
3
Hunan
12
Shanx
i
25
Anhui
8
Jiangxi
11
Hubei
46
Henan
40
Gansu
25 Ningxia 4
Shaanxi
10
40%
20%
14%
10%
9%7%
Regional distribution of chemical parks in china, %
East China South ChinaNorth China Northwest ChinaSouthwest China Northeast China
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The 2017 list of the top 20 chemical industrial parks suggest
that East and South China are prime locations
© 2018 CNCIC Consulting. All rights reserved 14
● Top 20 parks are selected based on
– The added value output per square
kilometer of land reached 970 million yuan
– The energy consumption was 1.93 tons of
standard coal per ten thousand yuan
industrial added value
– COD emissions per ten thousand yuan GDP
was 0.32 kg
– SO2 emissions per ten thousand yuan GDP
was 0.95 kg, and the average industrial
correlation was about 46%.
ID Name Location
1 Shanghai Chemical Industry Park Shanghai
2Huizhou Daya Bay Economic and Technological Development Zone Guangdong
13Maoming National Hi-Tech Industry Development Zone Guangdong
15Zhuhai National Economic and Technical Development Zone (Gaolan Port) Guangdong
3Ningbo Petrochemical Economic and Technological Development Zone Zhejiang
7 Ningbo Daxie Development Zone Zhejiang
10 China Chemical New Materials (Jiaxing) Park Zhejiang
17Zhangzhou National High-tech Development Zone Zhejiang
4 Nanjing Jianbei New Materials High-Tech Park Jiangsu
6 Jiangsu Taixing Economic Development Zone Jiangsu
8Ningxia Hui Autonomous Region NingdongEnergy and Chemical Industry Base Ningxia
11 Yangzhou Chemical Industry Park Jiangsu
12Jiangsu Changzhou Binjiang Economic Development Zone Jiangsu
18 Jiangsu High-tech Chlorination Industrial Zone Jiangsu
5 Zibo Qilu Chemical Industry Park Shandong
9 Dongying Port Economic Develop Area Shandong
19 Jining New Material Industrial Park Shandong
14Zhangzhou Lingang Economic and Technological Development Zone Hebei
20Hebei Shijiazhuang Xun Huan Hua Gong Yuan Qu Hebei
16 Quangang Petrochemical Industrial Park Fujin
li
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Among top 20, 12 are national and 8 are provincial chemical parks
© 2018 CNCIC Consulting. All rights reserved15
18. China Petrochemical (Qinzhou) Industrial
Park
5. Ningbo Daxie Development Zone
3. Ningbo Petrochemical Economic and
Technological Development Zone
16. Wuhan Chemical Industry Park
20. Jining New Material Industrial Park
11. China New Chemical Material (Jiaxing)
Park
9. Zibo Qilu Chemical Industry Park
14. Changshou Economic and Technology
Development Area
13. Quangang Petrochemical Industry
Park
17. Jiangsu High-tech Fluorine Chemical
Industry Park
6. Jiangsu Yangtse International
Chemical Industrial Park
7. Jiangsu Taixing Economic
Development Zone
8. Yangzhou Chemical Industry Park
• 9.3km2/35/330
• Petrochemical, fine chemical, new
chemical materials, chemical fiber
textile
4. Nanjing Chemical Industry Park
19. Jilin Chemical Industry Circular
Economy Pilot Park
1. Shanghai Chemical Industry Park
12. Cangzhou Lingang Development
Zone10. Dongying Port Economic Develop
Area
15. Maoming National HI-TECH
Industry Development Zone
2. Huizhou Daya Bay Economic and
Technological Development Zone
• 45km2/200+/1049
• Petroleum and natural gas chemical,
organic chemical raw materials, fine
chemical
• 8.95km2/60+/150
• Organic fluorine materials, high
performance membrane materials
etc.
• 24km2/58/1140
• Petrochemical, synthetic materials,
fine chemicals
• 68km2/100+/208• Chlor-alkali, dye, pigment, pharmaceutical,
pesticide, grease chemical
• 29.4km2/97/1100+
• Petrochemicals, synthetic materials, fine
chemicals
• 25km2/30+/643.5
• Focus on refining and chemical
projects, develop synthetic materials,
organic chemicals and fine chemicals
• 23.6km2/70+/805
• C2, C3, C4 downstream products
and refining/chemical by-products etc.
• 35.2km2/100+/505
• Chemical raw materials, fine chemicals,
polymer materials
• 56.22km2/100+/1700
• Focus on refining and ethylene. Also deal
with basic chemical materials and
petrochemical deep
• 10km2/35/478
• Organic silicon, high-performance
materials, lithium ion battery chemicals,
fatty acids
• 102km2/30+/373.69
• Petrochemicals and fine chemicals as
basis, new materials, high-end
equipment manufacturing, bio-health
sectors as pillars
• 80km2/200+/840
• Comprehensive chemical, new materials,
new energy, metallurgy, steel, equipment
manufacturing
• 71.64km2/316+/148
• Focus on ethylene, develop C5, C9, EO
and aromatics industrial chains
• 28.6km2/23/340
• Refining by-products processing, PE,
olefins, phosphorous chemical and bio-
chemical
• 60km2/32+/47
• Coal chemical, fine chemical, biochemical,
new materials
• 72km2/32+/1842
• Petrochemicals, fine chemicals, new chemical
materials, C1 chemical, plastics, etc.
• 66km2/42+/100.6
• Petrochemical, coal chemical, salt
chemical, comprehensive utilization
of hydrogen and chlorine
• 30km2/200+/718.7
• Petrochemical (C3, C4), salt
chemical, bio-chemical
• 59.8km2/240+/544
• Ethylene, EO, aromatics, PO,
acrylonitrile
Note:
• Area of chemical park/number of enterprises in the
park/park’s business income, RMB billion yuan
• Leading industries
li
1
2 15
178764
1153
13
12
20109
18
16
14
19
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The number of smaller-scaled chemical parks will decrease in the face of the
environmental storm
National, 47, 9%
Provincial262, 52%
Prefecture level, 193,
39%
Major chemical parks in China in 2016, %
National, 47, 10%
Provincial, 262, 54%
Prefecture level, 173,
36%
Major chemical parks in China in 2018, %
East China40%
South China20%
North China14%
Northwest China10%
Southwest China
9%
Northeast China
7%
Regional distribution of chemical parks in china, %
Type of chemical
parks
>100
50~100
10~50
<10
Sales revenue,
RMB billionNumber of
parks
13
29
155
404
Extra-large
Medium
Large
Small
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Of the 20 chemical industrial parks, 15 are relying heavily on refining and chemical
projects, highlighting such projects’ importance in the development of chemical
industry parks in China
© 2019 CNCIC Consulting. All rights reserved 17
Chemical park name
Petro-
chemical
Organic
Chemicals
High Polymer
Material New material
Coating/dying/
rubber
Lithium
batter
1 Shanghai Chemical Industry Park √ √ √ √
2 Huizhou Daya Bay Economic and
Technological Development Zone
√ √ √ √
3 Ningbo Petrochemical Economic and
Technological Development Zone
√ √ √
4 Nanjing Chemical Industry Park √ √ √ √
5 Ningbo Daxie Development Zone √ √
6 Jiangsu Yangtse International Chemical
Industrial Park
√ √
7 Jiangsu Taixing Economic Development Zone √ √ √
8 Yangzhou Chemical Industry Park √ √ √ √
9 Zibo Qilu Chemical Industry Park √ √ √
10 Dongying Port Economic Develop Area √ √ √
11 China New Chemical Material (Jiaxing) Park √ √
12 Cangzhou Lingang Economic and Technology
Development Zone
√
13 Quangang Petrochemical Industry Park √ √
14 Changshou Economic And Technology
Development Area
√ √ √
15 Maoming National HI-TECH Industry
Development Zone
√ √ √
16 Wuhan Chemical Industry Park √ √
17 Jiangsu High-tech Fluorine Chemical Industry
Park
√
18 China Petrochemical (Qinzhou) Industrial
Park
√ √
19 Jilin Chemical Industry Circular Economy Pilot
Park
√ √ √ √
20 Jining New Material Industrial Park √ √
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Three characteristics of China’s industrial chemical parks
© 2018 CNCIC Consulting. All rights reserved 18
• China’s chemical industry features high correlation and long product chain. Companies often produce some chemical
products in house, the products from the upstream process are used as raw materials for the downstream process
and the production devices can be connected through pipeline. The chemical industrial parks can integrate chemical
facilities or enterprises that are related to each other, they can also save the transportation cost of raw materials. In
this way, they are cost saving, conducive to production control and centralized treatment of the "three wastes" (waste
gas, waste water and industrial residue)
Value chain integration within the park
• As many chemical enterprises are concentrated in chemical parks, there are numerous flammable, explosive, toxic
and other dangerous sources in the parks. Accidents can cause grave consequences, so the safety management of
chemical parks is of utmost importance
High demand for better HSE management
Chemical industrial parks have become an important vehicle for China to realize circular economy. Chemical industry
needs to consume a large amount of resources and energy. It is also a capital intensive industry as huge investment is
needed to build a petrochemical plant. This requires reasonable layout of upstream and downstream enterprises in the
park so as to achieve resource sharing, coexistence of industries by exchanging products and byproducts and
comprehensive utilization of resources. In this way, environmentally friendliness and optimal utilization of resources,
energy and raw materials can be achieved
High demand for resources and energy
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19
• China started to initiate an array of chemical projects and was in urgent need of advanced technologies and equipment from MNCs
Exploration Emerging Adapting Expanding
Chemical FOEs in China need to know how/where to capture the opportunities…
• MNCs swarmed to China and established representative offices in Beijing, Shanghai and Shenzhen
• Expanded by imports
• Started investment
companies and sales
hubs
• More JV companies
emerged
• China and US reached
an agreement on China’s
accession to the WTO at
the end of 1999
• MNCs invested more heavily in China and made China part of their global operation network
• Started to move AP headquarters into China
• Greenfield projects
FDI CAGR
40%
FDI CAGR 3-4% FDI CAGR 7-
8%
FDI CAGR n/a
• Bayer(1958)• Shell
• ExxonMobil
• BP
…
• Chevron
• TOTAL
• BASF
• DUPONT
• AkzoNobel
• ECOLAB
• 3M
…
• Solvay
• NALCO
• LG Chem
• Mitsubishi
• Mitsui Chemicals
• EASTMAN
• ARKEMA
• MERCK…
• SK
• SABIC
• Lyondellbasell
• TORAY
• EVONIK
• AsahiKASEI
• Hanwha
• Lubrizol…
© 2018 CNCIC Consulting. All rights reserved
Upgrading
• Rebuilding core
competency
• R&D
• More active M&A
FDI CAGR 7-8%
• DuPont• Lanxess• Covestro• Air Products• BASF • …..
1972-1982 1983-1992 1993-1999 2000-2015 2016-2020
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From 2019 onward, China’s Chemical Industrial Parks will
face stricter standards
© 2019 CNCIC Consulting. All rights reserved 20Hainan
Shaanxi
Ningxia
SichuanHubei
HunanJiangxi
Fujian
Anhui
Jiangsu
Zhenjiang
Tianjin
Beijing
Xinjiang
Tibet
Qinghai
Gansu Inner Mongolia
Shanxi
Yunnan
Liaoning
Jilin
Heilongjiang
Shandong
GuangdongGuangxi
Guizhou
Henan
Hebei
Regions for no expansion projects
Number of parks will greatly reduced
● Chemical parks are only allowed in certain areas
● Major number of chemical park reduction will occur in Jiangsu and Shandong province
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The main development mode in the Yangtze River Delta Economic Belt in next few
years is to use innovation to upgrade core competitiveness of leading sectors
Changes of key sectors in major regions of Yangtze River Delta Economic Belt
• In emerging sectors, the intensified innovation of commercial modes such as customized service,
added value and solution scheme will mainly be used to develop new businesses like internet
finance, cross-border electronic commerce and supply logistics.
Shanghai
Zhejiang
Anhui
Jiangsu
Key industries: information, bio-
pharmaceutical, new materials, high-
end equipment manufacturing, etc.
Transformation objectives: to
enhance the strength of strategic
emerging industries, and be up to
advanced world standards in a number
of areas
Key industries:advanced manufacturing industry, etc.Transformation objective: to reduce the economy's dependence on heavy chemicals, real estate, labor-intensive industries and investment
Key Industries to be developed:
electronic information, high-end
equipment manufacturing, automobile,
bio-pharmaceutical, new materials, new
energy, etc.
Transformation objectives: strategic
emerging industries, advanced
manufacturing industry, modern service
industries. By 2020, the added value of
manufacturing industry will account for
40% of the region's GDP.
Key industries: advanced manufacturing and modern service industry, modern agriculture, etc.Transformation objectives: the added value of information economy, finance, high-end equipment manufacturing and new materials sectors shall increase by more than 10% annually
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Areas of opportunities
Three examples of opportunities
• There will be a time windows between competitors in midstream and downstream vanishing and
local enterprises having breakthrough in technological upgrades
Advanced materials• China is upgrading electronic information, equipment manufacturing and new energy
sectors so as to generate a strong demand of advanced materials. Foreign enterprises of advanced materials or related specialty chemicals will have sound development opportunities in next 5-10
• Moreover, foreign enterprises of materials mostly have upstream/downstream integration and impacts from the price rise of raw materials are quite small. Profit increase will become commonplace to them in future
Coatings/fine chemicals• The replacement by water-based coatings will get faster and faster. Infrastructure
construction and equipment manufacturing will also generate more demands.• Compared with most local enterprises, advantages in bargaining ability and R&D will enable
foreign enterprises to better cope with challenges from the raw material cost increase. They will therefore get more opportunities for the growth in sales volume and profit
Environmental protection• Water treatment chemicals will without doubt gain a prosperous market in future.
Coagulants and water treatment membranes will make the fastest growth.• In water treatment membranes, foreign enterprises will continue to keep their leading
market position on strength of advantages in technology
Today and tomorrow
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NCIC APIC 2019
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Only use
d for C
NCIC APIC 2019
NOT PUBLICLY DISCLOSED
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