Coastal Heavy Chemical Industry Takes Advantage of "Backing" and Reloading

At the beginning of the year, among the top ten industrial adjustment and revitalization plans passed by the Standing Committee of the State Council, in the heavy chemical industry projects with large investment quotas, the southern coastal areas, mainly Guangdong, Fujian, and Guangxi, became one of the "big winners." Occupy four of the five fine steel bases and nine of the nine oil refining bases.

Compared with traditional old industrial bases such as the northeast and north China, Guangdong, Guangxi, Guangxi, and other southern regions have not been the key areas for the layout of heavy chemical industry in the past, but with the accelerating pace of the transfer of heavy chemical industries to the coastal areas, they are stimulating rapid economic development and market preemption. Driven by the intrinsic momentum, a large number of heavy chemical projects such as steel and petrochemical have settled in the southern coastal areas one after another.

For the newly emerging forces on the coastal heavy chemical chain, the competent authorities told Newsweek that the southern coastal areas have their unique advantages in the development of heavy chemical industries in terms of economic basis and location, and will improve China’s heavy chemical industry. Layout and support for the development of the region have played an important role in promoting development. “At the same time, we should also strengthen the coordination and planning and use the advantages of 'post-development' to create a new road of industrialization that is different from the traditional heavy chemical industry development model.”

"Guangzhou-Guangzhou" heavy-duty force

At the beginning of 2008, the “Guangxi Beibu Gulf Economic Zone Development Plan” was approved by the State Council to become a national strategy. Guangxi, which sits on the “last virgin land” of China’s oceans, has begun to use its regional advantages to accelerate the pace of catching up in developed regions.

The plan clearly points out that it is necessary to vigorously develop the Linhai Heavy Chemical Concentration Zone. “The Linhai Heavy Chemical Industry Concentration Zone refers to relying on coastal cities and deep-water harbors, and lays out and builds an industrial zone dominated by modern industry. The near-term planning and construction area is 86 square kilometers, focusing on construction of Qinzhou. The Port Industrial Zone, Enterprise Sand Industrial Zone, and Tieshangang Industrial Zone. The Qinzhou Port Industrial Zone has a planned area of ​​36 square kilometers in the near future. It mainly develops petrochemicals, energy, phosphorus chemicals, forestry pulp and paper, and other supporting or related industries."

Under the vigorous promotion of the Guangxi government, a series of heavy chemical projects have been stationed on the banks of the Beibu Gulf. For example, the Guangxi Fangchenggang Iron and Steel Base Project jointly promoted by Wuhan Iron and Steel and Liu Gang, CNPC's 10 million-ton refinery project in Qinzhou, and the two forest fur paper integration projects of Stora Enso of Finland and Indonesian Jinguang Group supported by 10 million mu of fast-growing forest Projects with a total installed capacity of 12 million kilowatts (three major coastal thermal power projects + Fangchenggang nuclear power project).

In recent years, Guangdong has gradually adjusted its industrial structure and promoted industrial upgrading. Industrial heavy-duty has also become one of its important strategic directions. In July 2008, Guangdong Province announced the launch of ten new major construction projects, including the Daya Bay, Maozhan Petrochemical Base, Sinotrans Guangdong Refining and Chemical Integration, and Yamenkou Petrochemicals.

The intersection of national, local and corporate interests

The main leaders of the Guangxi Zhuang Autonomous Region stated that there is a large gap between Guangxi and the whole country and developed regions. The most fundamental is the low degree of industrialization and the backwardness of industrial development. Accelerating the process of industrialization is the key and key to Guangxi's opening up, development and reform and development. Among the pillar industries in Guangxi that are focused on building food, non-ferrous metals, petrochemicals, metallurgy, automobiles, machinery, and electric power, the seven major production values ​​exceeded RMB 100 billion, the heavy chemical industry has a very strong taste.

The leading role of the heavy chemical industry in related industries is very obvious. This is particularly important for the opening and development of Guangxi Beibu Gulf Economic Zone, which has just started and the industrial system is basically “as if it is a blank sheet”. Taking Fangcheng Iron and Steel Base Project as an example, according to reports, after the first phase of the project is officially put into production, the annual sales revenue will reach 34 billion yuan, providing 25,000 jobs. In addition, there are nearly 150 upstream and downstream supporting projects under negotiation.

However, under the impact of the transfer of processing and manufacturing industries and the current international financial crisis, Guangdong Province is also facing the problem of adjusting the industrial structure and finding new economic growth points. Yuan Xiping, deputy director of Sun Yat-sen University’s Hong Kong-Macao Pearl River Delta Research Center, told Newsweek that the company will continue to increase the concentration of funds and technologies in its industrial system by vigorously developing heavy industries such as automobiles, shipbuilding, iron and steel, petrochemical, and equipment industries. The degree is an important way for Guangdong to transform its industrial structure and maintain sustained and rapid economic growth.

Enterprises are most sensitive to the sense of interests. Major heavy chemical companies have entered the southern coast one after another, reflecting the unique economic value of this region in the development of heavy chemical industry.

Zhang Jiashou, director of the Department of Economics at the Party School of the Guangxi Zhuang Autonomous Region, told the journalist that the development of heavy chemical industry requires a large amount of raw materials, but compared with the past, the source of raw materials has undergone important changes. "In the past, most of the resources were originated in the northeast and north China. Nowadays, resources are increasingly dependent on imports and rely on the allocation of global markets." He said that from this perspective, the southern coastal areas have great advantages. It is not surprising that the transfer to the southern coast is not surprising.

Take the steel industry as an example. Currently, the four major steel giants, including Anbu, Shougang, Tangshan Iron and Steel, Wuhan Iron and Steel and Baosteel, occupy the northeast, north, central and east China regions, respectively, while southern China is almost the giant's empty local belt. Guangdong and Baosteel jointly create Guangdong. The Zhanjiang Iron and Steel Base Project; Wuhan Iron & Steel and Liuzhou Steel jointly built the Guangxi Fangchenggang Iron and Steel Base Project, undoubtedly to occupy a more favorable position in the future competition. Following the reorganization of Liuzhou Iron and Steel, Wuhan Iron and Steel reorganized Kunming Steel in 2007 to take the second step to the southwest. The 10 million-ton steel plant and the reserved 20 million tons of production capacity will help WISCO return to the top three in the Chinese steel industry. Listed.

The same is true of the competition in the petrochemical industry. PetroChina and Sinopec, the two major companies that supply refined oil, have been dominating the Yangtze River and subordinating the North and South markets. However, PetroChina is currently aggressively entering the southern coastal oil refining market.

"Later" should take the advanced road

Based on the characteristics of the development characteristics of China's heavy chemical industry and the role of market rules, most of the respondents are optimistic about whether there will be redundant construction on the southern coast, causing oversupply problems. However, they also reminded that while further strengthening planning, we should give full play to We will develop "advantages, absorb advanced achievements of all parties, combine the characteristics of resources and economic development, and embark on a new path of industrialization.

Yuan Xueping believes that it cannot be said in general terms that China's heavy chemical products have "overcapacity." The main problem at present is that the product quality is not high and the structure is irrational. "The excess is all major commodities, but the real high-end products are very scarce," he said. For example, most of the steel used by some of China's large machinery companies are imported from abroad. This is because the quality of steel produced by domestic companies does not meet the requirements.

In order to avoid the problems of redundant construction and overcapacity, the state is currently phasing out outdated production capacity as a prerequisite while allowing new projects to be launched. For example, in order to build the Fangchenggang Iron and Steel Base Project, Guangxi and Wuhan Iron & Steel must eliminate 5.41 million tons of backward iron-making capacity and 9.1 million tons of steelmaking capacity; Guangdong Province must eliminate 10 million tons of backward steelmaking capacity in the province in conjunction with Zhanjiang Steel's project construction.

"Repetitive construction is a product of the planned economy. Under the market economy, companies are chasing profits, and they will not do redundant projects or overcapacity projects." Yuan Xiping said that since so many large-scale enterprises include some foreign multinational companies The deployment of heavy chemical projects in the southern coastal areas proves that there is a huge space for development. "More likely is competition."

In fact, this is also true. According to reports, with the advancement of the western development process, the annual steel consumption in Guangxi, Sichuan, Chongqing, Yunnan, Guizhou and other southwest regions will reach 62.8 million tons in 2010. At present, the self-sufficiency rate of steel in this area is only 60%. Less than 26 million tons. The approval of the two steel base projects in Fangchenggang, Guangxi and Zhanjiang, Guangdong is a good indication.

Li Peng, vice president of the Business School of Guangxi University, said that due to the differences in market areas, economic structures, and resource characteristics of radiation, it is unlikely that the provinces of the south and the coast will repeat construction when they develop heavy chemical industry. “Guangdong has strong export-oriented, manufacturing-oriented and relatively mature technologies, while Guangxi mainly serves the Southwest and ASEAN regions, and its industrialization degree is relatively low. It will integrate the use of resources and technologies in the Southwest, and these differences will be different. Leading to the difference in the direction of development of the heavy chemical industry," said Li Peng. In the provinces and autonomous regions, strict planning is required. The "Development Plan of the Guangxi Beibu Gulf Economic Zone" deals with Qinzhou Port Industrial Zone, Fangchenggang Enterprise Sand Zone and Beihai City. The key development industries of Tieshan Port Industrial Zone have been described in detail.

At the same time, Yuan Chiping also stated that now Guangdong is basically not following the traditional line in the development of heavy chemical industry, but instead pursues differentiated development and aims to produce high-end products that are short of domestic production.

He believes that as a late start of the heavy chemical industry, the southern coastal areas should learn from Baosteel's initial development ideas, make full use of both domestic and international resources, and absorb and integrate existing advanced achievements, whether it is in the development of benefits, or In terms of environmental protection, production technology and even philosophy, we must start from a new and higher starting point. While stimulating the rapid development of the economy, we should also further enhance the quality and level of development of China's heavy chemical industry.