Chemical giants high-profile distribution of China's new material market

Last week, four new material exhibitions were added at the Shanghai New International Exhibition Center and the newly opened Shanghai World Expo Exhibition Hall, China International Polyurethane Expo, China International Composites Exhibition, Asia Pacific Plastics and Rubber Exhibition, and China International Engineering Plastics Exhibition. The 70,000-square-meter China International Leather Fair, held in one place at the same time, is still rare in the history of domestic exhibitions. In addition to the large scale, large number of exhibitors, and popularity, the "high extroversion" is also a big bright spot. Hundreds of world-renowned chemical companies have participated in the show. Many of them have appeared in large-scale hardcover booths. Product launches and technical lectures are also held. Many professional visitors expressed their emotions that "the foreign exhibition has moved to the country." Why is the enthusiasm of multinational companies for China's new material industry so high? What is the strategy for foreign companies to “grab” the Chinese market and what impact will it have on promoting the development of new domestic materials? The reporter visited several multinational giants at the exhibition.


Strategy: Developing emerging growth countries


The new material is called one of the most promising industries in the new century, and it is also one of the key areas of international technology and industry competition today. In the past 10 years, the annual growth rate of China's new materials industry has reached 22.5%, which together with information and new energy constitutes a troika of the Chinese high-tech industry. At the beginning of this year, China added "new materials" to the strategic emerging industries that the country focused on developing during the "Twelfth Five-Year Plan." In the face of economic difficulties in Europe and the United States, multinational corporations shift their strategic focus to the Asia-Pacific region, especially emerging countries such as China, and are optimistic about and focus on the new materials market that is growing at a high speed.


Wynn, the global president of BASF Polyurethanes, who was newly appointed to the office, said: "With the trend of increasing urbanization, liquidity, and living standards, polyurethanes continue to maintain a strong growth momentum compared with other materials. Now the United States Each person will use about 1 kilogram of polyurethane insulation each year. If Asia also reaches this level, the potential market will be more than four times that of today. BASF Polyurethanes is constantly striving for long-term profitable growth in the best condition.”


Zhang Baochang, vice president of Ashland High Performance Materials Asia Pacific, told reporters that in recent years, the growth of global demand for new materials is all in Asia, especially in China. The demand for high-performance materials is increasing in many applications. Ashland’s business in China has grown by leaps and bounds. The proportion of China’s business to its global total has increased from 3% five years ago to 8% in 2010. The company has set a target of 25% for the next five years.


A product manager at the PPG booth stated that the company’s strategy is to develop new and growing regions and markets, and will invest a lot of resources to help it grow.


Investment: Forming the following “promotion” industry chain


Most of the new chemical materials are polymer materials, and their development characteristics are “upstream is the downstream and downstream is the promotion of the upstream”. Through the extensive application of the final products in energy, transportation, construction, infrastructure, sporting goods, and life, the upstream raw material production capacity is enlarged. Promote product upgrades. For this reason, a group of the first multinational companies that entered China successfully invested upstream to increase their investment after the successful investment.


Bayer MaterialScience has built its largest integrated base overseas in Shanghai through 10 years of "rolling development." Hu Zuoqian, head of the polyurethane business department of Bayer MaterialScience, said: "As a leader in polyurethanes, we are actively involved in the development and application of downstream products, focusing on customized production and deep processing, and will build a system material factory in Yanzhou; we will not only enhance the supply of raw materials. It will also promote the formation of value throughout the entire industrial value chain.”


It is precisely because China has seen the world's largest wind power market, automotive market, home appliance market, and energy-saving emission reduction, environmental protection and new materials, the huge demand for foreign companies decisive additional investment. DSM announced in February this year that its joint venture company Jinling DSM Resins has invested 500 million yuan to build a new world-class composite high-end resin factory in Nanjing and put into operation in 2012. In July of this year, PPG completed the expansion project of its direct yarn at Zibo, Shandong. Ashland is building resin bases in Changzhou and Tianjin. Momentive Advanced Materials is also planning to expand its production capacity at its Chinese production base. Borouge's composite material plant with an annual production capacity of 50,000 tons in Shanghai was opened in April 2010. It recently plans to build a second factory in Guangzhou.


R & D: Close to the market and customer-centric


During the four new materials exhibitions in Shanghai last week, the leading products and technology solutions exhibited by foreign-funded enterprises dazzled the audience and highlighted their values ​​of “innovation and value creation” and “customer-centric” values. These foreign companies generally establish local R&D centers or laboratories in China, and conduct R&D activities based on customer needs. Although there is competition among companies, each company has its own characteristics. A research and development director of a foreign company told reporters that the Chinese government has proposed that foreign companies registered in China are also Chinese companies. Through win-win cooperation with Chinese-funded enterprises, it will be beneficial to the promotion and application of new materials in China.


At present, China's wind power is developing toward a large scale. Its blades are more than 50 meters long and require materials with higher mechanical properties and higher cost performance. Dow Chemical introduced an epoxy adhesive system tailored for the rotor blade manufacturing industry at the show. It can help blade manufacturers meet the requirements of high strength and light weight. Compared with existing products, fracture toughness is improved by 30%. The density of materials decreased by 10%. PPG strengthens R&D investment. The China laboratory has focused on the development of short-cut fibers, LFT fibers, and leaf coatings on the bottom surface required for large blades.


Composite materials are the key direction for the development of new materials. According to this market demand, multinational companies have come up with their own expertise in the show. SGL Group has introduced carbon fiber composite materials, including applications in CNG tanks, fireproof materials, thermoplastic composites, and municipal engineering. Evonik is committed to providing lightweight green materials for the composites industry. Among them, ROHACELL foams have good thermoforming and compression creep resistance and can shorten the manufacturing cycle. BASF showcases innovative composite solutions with its paper honeycomb technology that makes the car body lightweight and sturdy. Bayer MaterialScience has developed PUL polyurethane composite pultrusion window frame, which has stronger dimensional stability, higher specific strength and rigidity compared to traditional materials, and has good thermal insulation performance, which has recently become a global and Chinese market. Pushing new products.

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