Transnational Chemical Companies Formulate Investment Timeline to Accelerate Expansion of Investment Scale in China

June 22 21:01:29, 2018

As the second largest consumer of chemicals after the United States, China’s chemical demand now accounts for 15% of the world’s total and accounts for 40% to 45% of Asia’s demand. In the coming years, China will remain the growth engine for chemicals throughout Asia and even the world. Rhodia Corporation predicts that by 2006 China will become the world’s third largest chemical producer after the United States and Japan. China has become a bright spot for global chemical growth. For this reason, major multinational chemical companies have formulated a strategic timetable for further investment in China.
According to the results of the research on the investment trends of multinational corporations in China from 2005 to 2007 released by the Ministry of Commerce of the People's Republic of China, 82% of transnational corporations will continue to expand their investment in China. The scale and speed of investment in production, sales, and technology development are gradually increasing. improve. A group of multinational corporations is in the stage of investment preparation and will launch a new round of investment in China in accordance with changes in the global market and the Chinese market.
Mitsui Chemicals, which has significantly accelerated the pace of investment, said that by 2010, the company will invest 1.3 billion U.S. dollars in the Sinopec project. The 600,000-ton/year PTA plant invested in US$300 million in Zhangjiagang will be completed in 2007, and will be expanded by 600,000 tons/year by 2010 to reach 1.2 million tons/year. At the same time, Mitsui Chemicals will build a 100,000-ton PET polyester plant in Zhangjiagang. In addition, the company will invest US$300 million in a joint venture with Sinopec to build a 120,000 tpa/year bisphenol A plant in Shanghai and plans to start construction in mid-2006.
Arkema’s CEO, who has locked in Asia’s development strategy center, said that it plans to double its sales in Asia in the next 10 years to 1 billion euros/year. Arkema’s sales in China in 2004 were approximately US$200 million, accounting for approximately 5% of the company’s total sales. Currently, it has eight offices in China, Taiwan and Hong Kong.
DuPont plans to double its investment in China by 2010 to reach US$1.2 billion. The company’s sales in China in 2004 increased by 32% to US$1.4 billion (including Hong Kong and Taiwan) and established a research and development center in Shanghai.
The Chinese market will also become the main driving force for Huntsman's growth. The company proposes that by 2010 sales will increase from the current 1.5 billion US dollars to 2 billion US dollars. Huntsman’s largest investment project in China is to jointly build a 240,000-ton/year MDI plant in Shanghai, BASF and China, which will be completed in June 2006.
Bayer Polyurethanes (Shanghai) Co., Ltd. originally planned to invest 1.2 billion euros in the Shanghai Chemical Industry Park to solely build 380,000 tons/year of isocyanate plant, including 230,000 tons/year MDI plant, 150,000 tons/year TDI plant, and build 280,000 simultaneously. Ton/year polyether polyol plant. However, Bayer MaterialScience recently decided to build the world's largest MDI plant in Shanghai Chemical Industry Park, replacing the original planned 230,000 tons/year plant. The capacity of the plant will be expanded to 350,000 tons/year. It is planned to begin construction in 2006 and complete in 2008. . The unit will be part of Bayer's 100%-owned polyurethane (PU) unit, which will also include 160,000 tons/year TDI units.