With the vigorous development of China's chemical market, chemical giants such as BASF and SABIC have been cultivating the Chinese market for many years. They have begun to search for more suitable corporate strategies for development in China.
The first financial reporter noted at the 32nd CHINAPLAS exhibition in Shanghai that the concepts of chemical companies that have been understood by the public to focus on the production of basic products are changing, and that the Chinese market is becoming increasingly complex. Under the situation, a public chemical company is accelerating its penetration into market segments.
Infiltration into market segments
At the event, BASF combined Chinese design elements with advanced BASF materials. A number of technologies were introduced, including high-end concept motorcycles, high-performance sports flooring, high-elasticity underwear, and advanced collaboration robot PlasCobot. Financial reporters learned from BASF’s field staff that 13 of these projects are using the latest BASF material application technologies. BASF’s President of Asia Pacific (functional management), Ke Diwen, President and Chairman of Greater China, said at the scene: “Through these cooperation projects , We show how to use BASF's innovative materials to jointly develop high-end products.
Covestro recently started to penetrate the medical industry with the introduction of Makrolon® Rx3440 medical grade polycarbonate. It is understood that this new material is applied to Luer connectors and other intravenous connectors, and its excellent durability and chemical resistance Sex helps to prevent cracking caused by tumor drugs and other treatments of corrosive solvents, so medical experts can safely deliver tumor drugs to patients.
Ray Hung Lai, Senior Vice President of Cosmic Polycarbonate Business Unit in Asia Pacific, told the Chief Financial Officer: 'For leading brands and individuals, the cutting-edge technologies that have emerged in recent years are both challenges and opportunities. Support, create economically viable, cost-competitive solutions that drive the development of next-generation technologies.
Technology and design elements began to appear in high-profile chemical products reflecting the changes in the market. First Financial Reporter was informed that the drastic changes in market conditions are quietly changing the distribution philosophy of these companies in BASF. Within a week, BASF and Covestro The domestic chemical giants successively opened flagship stores on Alibaba's e-commerce platform 1688. BASF senior vice president Zheng Daqing told the First Financial reporter that the choice of Internet channel sales is because the e-commerce platform has formed a very good channel for dealers. The supplement.
The reporter found that following the footsteps of chemical giants such as BASF and Covestro, the petrochemical giant SABIC is also moving from B2B to products related to mass consumption. During the exhibition, Abdullaha, executive vice president of SABIC Petrochemical Strategic Division Man Al-Fady (hereinafter referred to as 'Al-Fat') told the First Financial and other media that 'last year we showed our customers three segments of the market, including automobiles, pipelines and construction and foaming. Materials. This year we have introduced three new market segments including personal care, bottle caps and thin-walled packaging. We hope to introduce our latest technologies to these customers in these market segments.
Al-Fatty frankly stated that one of SABIC's strategies is to grow, then invest, and one is to transform. In addition to the petrochemical segment, there are also three other market segments: mass transit, healthcare And electronic products.
Giants increase investment in the Chinese market
The Chinese market has become a key market that these chemical giants have relied heavily on. The bright performance of Yangon's key markets means that multinational chemical companies will conduct large-scale, long-term asset investments in key markets such as China.
Speaking about business in China, Al-Farge told the First Financial reporter that the company is also conducting a feasibility study in the near future. SABIC hopes to develop a coal-based petrochemical project together with Shenhua Coal Industry. 'This project is based on our original plan. Moving forward, the partners’ goals are also consistent. We are also very pleased that China is undergoing a transition to attract more foreign capital. Our cooperation with Shenhua is actually a good example. Al-Fa Season told CBN reporter.
The First Financial Reporter was informed that the project mentioned by Al-Fathi was a 700,000-ton-per-year coal-to-olefins new material demonstration project jointly invested by Shenhua Ning Co. - Saudi Basic Industry Co., Ltd., with an investment of about RMB 200 billion yuan. The project uses coal as raw material, gasification, purification of the synthesis gas into methanol, separation of methanol into ethylene and propylene, ethylene, propylene were polymerized to form a product.
He said that SABIC will apply the latest technology to its production. At the same time, SABIC also plans to expand the polycarbonate project of Sinopec (Tianjin) Petrochemical Co., Ltd. to create the world's largest polycarbonate production plant. It is understood that SABIC The investment in China includes three factories (Nansha, Shanghai and Chongqing respectively), the Shanghai R&D Center and the joint venture with Sinopec - Zhongsha (Tianjin) Petrochemical Co., Ltd.
Coincidentally, BASF, which is constantly optimistic about the Chinese market, has also announced a series of new rounds of investments in China. At present, a new world-class automotive paint production plant with a total investment of 140 million euros has been completed and put into operation in the Shanghai Chemical Industry Park in Handan. “We have expanded our production network to Western China to Xinjiang Korla, and gradually upgraded our production base for diphenylmethane diisocyanate (MDI) in Chongqing and the production base of Maolin Isononyl Alcohol (INA) in Guangdong, which was jointly constructed with Sinopec. Capacity utilization. ' Ke Diwen told reporters.