There's No Stopping China's Manufacturing Speed. The Country's Robust Industrial Health Is Largely Reflected By The Chemical Industry. China Is The World’s Second Biggest Consumer Of Chemicals. Chemical Makers Have Long Derived Benefits From The Low Cost Of Labour, Cheap Infrastructure, Favourable Government Polices And An Immense Market.
The Chemical Industry Is Now In The Process Of Transition, Reaching For New Growth Drivers. A Small, Yet Distinct Shift Has Been Towards The New Energy Sector With Governments And Enterprises Eyeing A Green Evolution. Chemical Companies Too Are Not Averse To The Demands Created By Sustainability And The Urgent Need For China To Beef Up Research And Development.
The Global Chemical Industry Has Recovered From The Volatility Of The 2008 Financial Crisis, But The Forces Holding Up The Newfound Stability Are Quite Different From Before. Much Of The Recovery In The Chemical Sector Can Be Attributed To Demand In The Asia Pacific Region, While Middle Eastern Producers Are Ramping Up Their Scale. In Short, The Recession Has Accelerated The Chemical Industry’s Progression Towards Greater Globalization, Integration And Dependency- And China Is Very Much A Part Of This Shift.
However, Among All Products In The Industry, China Has The Highest Demand For Speciality Chemicals And Has Been Constructing Its Own Chemical Plants And Using Joint Ventures With European Players To Increase Capacity In This Sector.
China Has Set For Itself Not Only A Goal Of Self Sufficiency In The Petrochemical And Chemical Sectors, But It Is Now Determined To Steer Itself Up The Value Chain. As The Country Works On An Ambitious Agenda Of Reducing Carbon Emissions, It Becomes All The More Important To Establish A Mature And Streamlined Chemical Value Chain.
A Significant Part Of This Blueprint Is To Ensure That The Industry Improves Its Processes. In This Endeavour, R&D Is A Key Strategy Which The Government, State-Owned Enterprises And The Innumerable Private Chemical Companies Will Have To Encourage. More Investment In Research Infrastructure At Every Level Will Be An Essential Element Of Promoting Sustainability. The Success Of Upgrading China’s Chemical Value Chain Will Lie In Nurturing The R&D To Sustainability Focus.
Luckily, China Has Given Itself Tremendous Advantages By Way Of Infrastructure. The Mega Chemical Parks Built Across The Nation Are Now Being Put To More Rational Use As They Become Crucial Incubators Of Technology And Talent. Foreign Ventures Have Always Been Welcome To Set Up R&D Facilities At The Chemical Parks, Attracted By A Range Of Incentives.
Multinationals, Once Dealing In Bulk Chemicals, Are Now Emphasizing Their Green Credentials By Producing And Researching On High-End Speciality Polymers And Niche Products. While This Addresses The Issue Of Sustainability, It Also Makes Economic Sense For Companies Which Are Trying To Capitalize On The Strength Of Their Technological Innovations
In This, Foreign Multinationals Have A Head-Start. Most Of The Big Companies Have Undergone A Change Of Philosophy And Major Internal Restructuring To Orient Themselves To Providing For A Sustainable Future. It Can Be Said For Companies That Being Green Is A Responsibility And Revolution Rolled Into One.
But A ‘Green Portfolio’ Also Needs A Market To Survive. This Is Where China Is In A Position To Make A Difference, Given Its Sheer Volume And Will To Orient Itself To A More Sustainable Mission. China’s Quick Response Time Will Neatly Dovetail With The Attempts Of Multinationals To Produce A Greener Economy. Foreign Companies Are Gearing Up To See How Best They Can Respond To China’s Increasing Appetite For High-End Products, And How Swiftly They Can Address The Gap In The Sustainability Market.
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