Last year, the China Petroleum and Chemical Industry Federation organized a group of presidents and senior managers of multinational companies in Greater China to discuss in depth the development trends of the world petroleum and chemical industry and China’s innovation and development opportunities in the next 10 years, which lasted 9 years. At the time of the month, several drafts were made and a research report on “The Future of China’s Petroleum and Chemical Industry by Multinational Companies†was formed. Li Shousheng, executive vice president of the China Petroleum and Chemical Industry Federation, referred to this report as "the third eye to see China." At the China International Conference on Petroleum and Chemical Engineering, the leaders of multinational corporations who participated in the preparation of the report talked about it. Their vision for the next 10 years not only integrated the company’s century-long history of prosperity, but also closely linked to the development of China’s petrochemical industry. "Variety of population," "urbanization," "thirteenth five-year plan," and "overcapacity," and other words with Chinese characteristics frequently appear in conversations among CEOs of multinational corporations. This is from the global perspective of the same industry in the west. The consideration of the combination of Chinese and Western styles for the future development of China's petrochemical industry will undoubtedly bring a new enlightenment to the sustainable development of China's petrochemical enterprises during the transition period. Facing the change of raw material supply In the next 10 years, the supply of raw materials and energy will play a crucial role in the competitiveness of petrochemical companies. In the past few decades, petroleum has always played a major role in the supply of raw materials and energy. Five years ago, no one foresees the impact of the development of shale gas in the United States on the global petrochemical industry. Five years later, this raw material revolution has profoundly changed the investment and trade of the world's petrochemical industry. With the market pattern, more investment has begun to shift to North America, and the United States has also shaken off its dependence on Middle East oil. In the future, it will also become an exporter of energy and petrochemical raw materials. At the same time, the rapid rise of China's coal chemical industry has also led to a gradual increase in the proportion of cheap coal resources in petrochemical industrial raw materials. The advancement of modern coal chemical technology has made cheap coal widely used as a petrochemical raw material as a possibility. In the past during the prevalence of naphtha almost nobody cares. 2014 China International Petroleum and Chemical Congress. How to face the challenge of diversification of raw materials and quickly adjust investment decisions in the course of changes in raw materials? Bo Xile, vice chairman of BASF's executive board, believes: “For transnational corporations, the challenge of dealing with the challenges of raw materials has been raised to an unprecedented level. The mentality, according to the pricing and economic efficiency of raw materials to quickly adjust investment decisions; in the formulation of investment decisions, the company must also consider the differences in raw materials in different regions; the same time, companies need to increase the attention to related technologies, so as to seize the opportunity to produce The shortage of products brought about by the change in raw materials fills the gap in the market.†Bo Lele said that the differences in the development and utilization of raw materials across the world have made raw material challenges faced by the petrochemical industry unprecedentedly severe. The diversification of raw materials and their transformation require the petrochemical industry to have a high degree of flexibility and flexibility. The stone chemical industry must closely follow the development trend of raw materials and make corresponding adjustments to production technologies in order to maintain its competitive advantage. Changes in raw materials will directly lead to changes in the synthetic route and process. As a petrochemical company, the more flexible its technology portfolio, the better able it will be to respond to changes in raw materials. During the meeting, Zhang Dong?N (left), the deputy director of the Tianjin Development Zone (Nangang) Administrative Committee, briefed Zhao Jungui (middle), vice president of the Petroleum and Chemical Industry Federation, on the overall planning of the Nangang Industrial Zone. “Historical experience tells us that change may not be a threat, but instead it is a new opportunity for product and technology development. For example, the development of the coal chemical industry in China has made coal-to-olefins and coal-to-ethylene glycol a very promising product. Selective high-efficiency catalysts will increase the competitiveness of products, while the large number of applications of shale gas in North America will result in the shortage of butenes and aromatics, and high-efficiency butane dehydrogenation processes will effectively fill market gaps, such as the development of targeted changes in raw materials. Products and processes will bring new growth points to the company." He also reminded that in the next few years, there will be huge differences in the cost of petrochemical feedstocks across the world. In the era of using naphtha as a raw material, the overall cost of using naphtha to produce propylene is almost the same in the United States, Europe, and China. By 2022, the cost of propylene production in the United States, Europe, and China will be completely different. In addition to the overall production costs, if we focus on the cost of capital and cash costs, taking into account the differences in investment planning and life cycle will be more significant, after the depreciation of assets, the cash cost advantage of coal is more obvious. For European petrochemical companies, it is impossible to further improve their competitiveness within the next 10 years. Only by virtue of a high level of integration, an extension of the product value chain and a superior geographical location can the competitiveness be maintained; the petrochemical industry in the United States will greatly increase its use of natural gas. The ability to produce propylene for raw materials; in China, coal with abundant reserves and competitive prices will significantly change the cost structure. The cash cost advantage of coal chemical projects is very obvious, but on the other hand, capital expenditures for coal chemical projects are quite high, and each investment All must be thoughtful. Exerting Market Driving Force to Overcome Excess At present, one of the most prominent problems faced by China's oil and chemical industry is excess production capacity. The direct result of this is that it causes companies to start underemployment, low profits, and lose competitiveness in the market. Since the "Eleventh Five-Year Plan" period, the Chinese government has realized the seriousness of this problem and has begun to find ways to correct it. However, a few years have passed and the problem has not been fundamentally resolved. Some industry experts predict that given the current status of the industry, even if it is the “13th Five-Year Planâ€, excess capacity will still be one of the factors that plague the healthy development of the industry. In this regard, what are the views held by CEOs of multinational corporations in China? The word “overcapacity†impressed BASF Group Vice President and Chief Representative of China Woodk. He even remembered that this keyword appeared in the 42nd in the English version of “The Multinational Companies Look at the Future of China's Petroleum and Chemical Industryâ€. On the page. "Overcapacity is a very serious problem in our industry, especially in China. China's overcapacity has Chinese characteristics as local protectionism. The government is not an expert in a certain industry and it is not very thorough in understanding the industry. Investment decisions made by local governments are often an important cause of over-investment. Some local companies originally were eliminated by the market according to market rules, but because of local protectionism they survived. We hope this can be more The local government has drawn the attention of the local governments. It is worthwhile to note that in the past few years we have heard some new government proposals. That is to make the market's power play a decisive role." “There is one point I think is very important, that is, the transparency and predictability of the policy are also very important. Just like there are many problems in the pricing of natural gas, especially in the aspect of natural gas price reform, it has generated for the users of natural gas downstream. Great influence. We hope that the transparency of the policy will be higher, so that companies can be more confident in making decisions," Woodk added. Ke Ruonan, Senior Vice President of INVISTA Group, expressed his views on the role of market decision-making: “In some regions of China, the problem of excess capacity we face is very serious, and there is no way to continue to work in some markets. We hope to be in the industry. In the operation of rationalization, I hope that companies will pay more attention to market signals and focus on making decisions in the long-term so that they can create better value for the company. In the face of market competition, the full play of market forces will enable the development of the enterprise to Importantly, we also hope that such trends in the future will continue in China. In addition, from the market point of view, market competition must abide by the rules, and we must implement rules in the protection of intellectual property rights. Only under such a precondition, we Innovation can be further developed to help us realize the return on investment." “In the end, I would like to mention the situation in the energy sector. This area should also be highly focused on market forces. Competition in this area will continue. If we take a moment to look at the shale gas revolution in North America in the past, we will find the market. The role of power is actually that some entrepreneurs discovered such business opportunities and started to innovate. They hired some innovative talents to enter the market and manage the market, thereby contributing to the North American shale gas revolution and solving North America. The energy challenge is facing. Therefore, the strength of the market is a very critical factor. Both President Xi Jinping and Premier Li Keqiang have repeatedly stressed this concept, so I believe that such a trend will continue in China," said Ruo Kelanan. Innovation transformation is the magic weapon The history of the development of the petrochemical industry is a process of constant adjustment of the diversification of human needs and the conflict between resources and the environment. Innovation has always been the golden key to the continuous success of the petrochemical industry. Hong Zhong, senior vice president of Evonik Industries Group, believes that when the petrochemical industry faces many challenges, it must overcome the bottleneck of development. The only way out is innovation. Due to the lack of innovation, the petrochemical industry will only suffer from a certain level, will only have a simple and repetitive increase in production capacity, will result in excess capacity, but also due to lack of innovation capacity, it will cause pressure on the environment. He also pointed out that in order to accelerate the pace of innovation, cooperation between Chinese companies and multinational companies is very necessary. Chinese companies have deep understanding of customer needs, fast response, and strong ability to innovate in business models; and multinational companies have accumulated experience and knowledge and Subversive thinking has more advantages. The cooperation between the two sides can complement each other and complement each other. “In the face of the current challenges, both companies and the entire industry must make great efforts to develop targeted technology combinations to fill product gaps and maximize the opportunities brought to us by different raw materials in different regions. The world is changing with each passing day. Society challenges the sustainability of the chemical industry.How can we better balance the development of the industry with the needs of the economy, the environment, and society? The only feasible answer is to consistently carry out technological innovations. It's important." Frank Ming, CEO of LANXESS Chemical Greater China, believes that the transformation and upgrading through innovation is the foundation for a company's development. “The transformation of a multinational company like us is not a new thing. Especially in the past 20 years, our business has greatly improved in North America and Europe, thanks to continuous business adjustment and transformation. The birth of LANXESS is in itself As a result of the transformation and upgrading of Bayer, LANXESS was independent from Bayer 10 years ago and we have undergone spin-offs, investments, mergers and acquisitions since the transformation and upgrading.Landwide has transformed into a very different company. 10 years ago, we were in the Asia Pacific region. The assets will only account for 5% of global business, and this number will increase to 30% by next year,†said Qian Mingcheng. Historically, the process of transformation is not a special phenomenon. After the Industrial Revolution, Britain and other Western countries have also come a long way in managing environmental pollution and protecting the environment. Today, Germany, which enjoys a high reputation in the world, is not one step in its development. Its development has also experienced the hardships of counterfeiting and innovation. “Transition and upgrading is a painful process, but we have a lot of confidence in our industry colleagues working together, social support, and government support,†said Qian Mingcheng. Miao Bole, President of Bayer MaterialScience Asia Pacific/China, said: “We are also very concerned about the future of innovation. Innovation is the core driving force for Bayer's sustainable development. Bayer's history of innovation has been 150 years. Our slogan is created through science. In a better life, we will improve people’s quality of life through continuous technological innovation. In 2005, we set the 2020 goal, reduce emissions by 40%, and increase our energy efficiency by 30%. †Pay more attention to people's needs Although it is a typical professional meeting of the oil and chemical industry, the reporter of the China Chemical News reporter at the conference heard many topics on population growth and ecological environment. The organizers even used smart cities and new urbanization as one of the conferences. Important topics organized a sub-forum. In the next 10 years of development, how to coordinate the development of people and the chemical industry, the environment, and the chemical industry, mutual benefit and win-win situation has become a hot topic of discussion. So what can the chemical industry do for human survival and human civilization? DuPont - one of the world's oldest chemical companies, but in the eyes of DuPont, they have always considered themselves to be a scientific company. This concept has continued since 1802. Wu Jian, general manager of DuPont China, said: “From the earliest production of gunpowder, we positioned ourselves as a scientific company. DuPont uses its own science and technology to continue to make life better and safer for people when they face new challenges in the world. And provide healthier solutions." In the first hundred years, the nitroglycerin explosive invented by DuPont contributed to the process of industrialization of human society. In the second century, DuPont developed chemicals that are familiar with human life, such as nylon, Teflon, Lycra, and soy protein, and improved people's quality of life. Talking about the positioning of DuPont in the development of the third century, Wu Jian said: "For enterprises to develop, we must follow the trend of the world. In the coming decades, population growth will be one of the important trends in world development. This trend will give Mankind brings challenges, but also brings many business opportunities to the company.DuPont will focus on three major areas, the first is food, our goal is to increase grain production, and at the same time make limited food nutritional value higher and safer; The second is to develop renewable cellulosic ethanol as an important supplement to fossil energy. The second-generation cellulosic ethanol project using corn stalk as raw material will be started in the United States this year or next; the third is to use new materials and new materials developed by us. Technical and management experience enhance safety protection." Miao Biao also stressed: "In the future development, we should pay more attention to human problems and pay attention to people's needs. China is facing the challenge of urbanization. This is also a common challenge facing humanity. There will be more rural people in the future. When you live in a city, people need convenient transportation, enough drinking water and food, and you need a more comfortable living space. People will consume more energy, so we must be prepared for this change. The production and development of high-quality materials and advanced solutions can make the city more environmentally friendly and energy-saving. Some new types of coatings can better protect the quality of buildings and provide residents with a comfortable living environment." Qian Mingcheng also stated: "The increase in transportation, transportation, and housing will all bring about huge energy and water consumption. At the same time, it also brings about carbon dioxide emissions. The challenge of air pollution and water shortage is a major issue in the 21st century. Future Chemistry The sustainable development of industry and urbanization are closely linked, and new challenges also give us new opportunities. The chemical industry can provide innovations in several major areas such as improving energy efficiency, strengthening water resources protection, and saving energy and reducing emissions. s solution." Meet the digital challenge In addition to raw materials, markets, and technologies, the petrochemical industry will usher in digital challenges along with the wide application of information technology and Internet technologies. The CEOs of multinational companies have a deep feeling about this. Zhu Mingyue, president of Solvay Investments Greater China, said: "With the arrival of the digital era of big data, cloud computing, mobile communications and the Internet, digital technology will have a huge impact on the traditional chemical industry in the next 10 to 20 years. When we manage and manage companies in the traditional way, we must see the challenges brought about by digitalization. We are feeling the impact of the digital age. Today's global foreign exchange trading volume is equivalent to the entire year of foreign exchange trading in 1979; The number of conversations a day corresponds to the number of global calls in 1984." Zhu Mingyue said: “As far as the chemical industry is concerned, the total global transaction volume in the last century was 1.4 trillion Euros, and from 2000 to 2010, the total global trade volume has increased by 1 trillion Euros. During the year, the entire chemical sales will increase by 1 trillion Euros, and the rapid growth in trade volume is directly related to the application of Internet technology, and the traditional B2B sales model in the chemical industry is currently facing the challenges of O2O sales model under the Internet. For the company, in the global sales process, we have a customer management system. This is a magic weapon for our competition. This magic weapon will face the challenges of fast and efficient Internet technology services with the advent of the digital economy." “In the field of production, we also face the opportunities and challenges brought about by the digital era. Data storage and data analysis technologies are widely used in the chemical industry. In the energy-saving, high-efficiency, environmental-friendly and profitable production model and development process, digitalization will bring More opportunities are coming.The current government’s management of the safety, health and environmental protection of chemical companies has also entered the digital age, and has implemented 24-hour non-stop supervision. The trend of paperlessness, digitalization, networking, and openness has become increasingly apparent. The more smart cities are built, the chemical industry in China and the world will face huge and complex differences." “These changes and challenges are very beneficial to the healthy development of the chemical industry. The key is to see whether companies are ready to meet such changes, and in this transition, they will fully enjoy the advantages brought by the transformation and the advantages of sustainable development. Some companies have seen such challenges, and some have not noticed them," Zhu Mingyue reminded. Machinery And Equipment Parts,Metal Pipe Clips,Metal Tube Clamp,Clamp Metal Ningbo Metal Sharing Supply Chain Management Co., Ltd , https://www.metalsharing.com
Petrochemical Industry: Building the Future of Chinese and Western Combinations