Fujian deepens petrochemical industry cooperation with Taiwan

OnMarch27th,ViceGovernorofFujianProvinceNiYuefengattendedthesymposiumoncooperationbetweenFujianandTaiwaninthepetrochemicalindustryinTaipei,andmorethan40TaiwanesepetrochemicalindustrypeoplesuchasChenWuxiong,chairmanoftheTaiwanIndustrialAssociation,onhowtofurtherpromotethepetrochemicalindustryinFujianandTaiwan.Cooperation,aswellasrelatedissuessuchassiteselectionplanning,projectpromotion,andupstreamanddownstreamintegrationinthedevelopmentofpetrochemicalindustryinFujianandTaiwan,conductedin-depthcommunicationanddiscussion. Inrecentyears,Fujianhasbeencommittedtobuildinga“petrochemicalprovince”.Asearlyas2000,thepetrochemicalindustryhasbeenlistedasoneofthethreepillarindustriesthatFujianhasfocusedon.Inthe"StraitsWestCoastEconomicZoneDevelopmentPlan"approvedbytheStateCouncilin2011,itisproposedtorationallyarrange,extendandimprovethepetrochemicalindustrialchaininaccordancewiththeprinciplesofbasement,large-scaleandintensification,andacceleratetheconstructionoftheMeizhouBayandZhangzhouGuleiPetrochemicalBase.Formedanimportantnationalpetrochemicalindustrybaseinthecountry.Activelypromotethedeepprocessingandcomprehensiveutilizationofpetrochemicals,andpromotethedevelopmentofupstreamanddownstreamindustries. AtthesametimeasFujianProvinceacceleratedthedevelopmentofthepetrochemicalindustry,theoncebrilliantTaiwanpetrochemicalindustryencounteredadevelopmentbottleneck.ZhouHuaixin,supervisoroftheTaiwanPetrochemicalAssociation,saidinaninterviewwiththemediathatthepetrochemicalindustryinTaiwanhasahighlydevelopedmaturemarket.Fromdownstreamproductprocessing,petrochemicalintermediaterawmaterialsandbasicrawmaterialproduction,toupstreamrawmaterialrefining,ithasformedaseriesofinterlockingandsupportingCompleteproductionsystem.However,theshortageoflabor,thehighcostoflabor,andthenarrowmarketontheislandhavehamperedthedevelopmentofTaiwan'spetrochemicalindustry. Underthecombinedeffectsofvariousfactors,thedevelopmentofTaiwan'spetrochemicalindustryislimited,andexternalmigrationhasbecomeaninevitabletrend.FujianProvince,whichisseparatedbywater,hasbecomethefirstchoicetoundertaketherelocationofTaiwan'spetrochemicalindustrybyvirtueofitslocationadvantageanditsemphasisonthedevelopmentofthepetrochemicalindustry.Thecooperationbetweenthetwosidesofthepetrochemicalindustryhasusheredinanopportunity. In2009,duringtheeconomicandtradeexchangesbetweenFujianandFujian,thevicegovernorofFujianProvince,YeShuangyu,ledtheFujian-Tianjinpetrochemicalindustrytosignamemorandumofexchangeandcooperation.Accordingtothememorandum,theTaiwanPetrochemicalIndustryAssociationwillsetupaspecialrepresentativeofficeinQuangang,Fujian.Specificallyresponsiblefororganizing,coordinatingandhandlingthecooperationofthepetrochemicalindustrybetweenFujianandTaiwan.YangHao,thendirectoroftheFujianProvincialDepartmentofForeignTradeandEconomicCooperation,saidthatthesigningofthememorandumwillmakethecommunicationbetweenFujianandTaiwanpetrochemicalindustrysmootherandlaythefoundationforfuturedeepcooperation. WhentheGovernorofFujianProvince,SuShulin,ledacooperationexchangegrouptoTaiwantocarryouteconomicandtradeculturalexchangeactivities,thecooperationbetweenFujianandTaiwanpetrochemicalindustryonceagainbecamethefocusofmediaattention.OnMarch26th,"Tiantaicooperationanddevelopmentdinnermeeting",ChenWuxiongsaidthatSuShulinisanexpertinthepetrochemicalindustry.Taiwan'spetrochemicalindustryisfacingdifficulties.NowithastheopportunitytocooperateundertheleadershipoftheHaixiSpecialZone,notonlytheextensionofcross-straitrelations.ItisalsoamilestoneinthesustainabledevelopmentofTaiwan'spetrochemicalindustry. SuShulinsaidthatthepetrochemicalindustrycooperationbetweenFujianandTaiwanisnowdoingsomediscussionandpreparation.TheGuleiPetrochemicalBasehasbeenincludedinthe12thFive-YearDevelopmentPlanandisintheearlystage.SuShulinsaidthatthisyear,effortswillbemadetocompletethefeasibilitystudyoftheGuleiPetrochemicalBaseProject,toverifytheeconomicfeasibility,andtoconductanenvironmentalassessment.Itisexpectedtobefinalizedaftercompletion. TheGuleiPetrochemicalBasehasbeenfavoredbytheTaiwanpetrochemicalindustry.ThetopleadersoftheFormosaPlasticsGroupandtheTaiwanPetrochemicalAssociationorganizedmorethan20top-levelTaiwanesepetrochemicalenterprisestorushtoGuleitoinvestigateanddock.Atpresent,Taiwan'spetrochemicalindustryhascometothegrouptonegotiateconstructioninvestmentmatters.14projectshavestartedconstruction,withatotalinvestmentof29.4billionyuan.InAugust2011,FujianProvinceandChinaPetrochemicalCorporation,GuleiPetrochemicalCompany?The“Taiwan-Taiwanese-funded”signedthe“FrameworkAgreementonCooperativeConstructionofCross-StraitRefiningandChemicalIntegrationProject”,whichwasinitiallyplannedasanoilrefinerywithanannualoutputof16milliontonsofcrudeoiland1.2milliontonsofethylenelightcrackingplant,and26Thedownstreampetrochemicalplanthasatotalinvestmentofabout4.5billionUSdollarsandisexpectedtobecompletedandputintoproductionin2014. TheexchangesbetweenthetwosidesoftheTaiwanStraitaredeepening,andtheconditionsforcooperationinthepetrochemicalindustryarebecomingmo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Chemical construction companies face multiple challenges

Atthe2012AnnualMeetingoftheChinaChemicalConstructionEnterpriseAssociationandthesecondhigh-qualityprojectcommendationexchangemeetingheldinHangzhouonApril10-11,therelevantpersoninchargeoftheassociationsaidthatthesituationin2012isnotoptimistic,andenterprisesshouldhaveacomprehensiveandprofoundunderstanding.Bepreparedtodealwithallkindsofdifficulties. AccordingtoYuJinbo,chairmanoftheChinaChemicalConstructionEnterpriseAssociation,themainbusinessincomeoftheconstructionenterprisesunderthefirst-classconstructiongeneralcontractingqualificationoftheassociationwasabout58billionyuanin2011,anincreaseofmorethan44%overthepreviousyear;themembercompaniesoftheengineeringcompanyrealizedthenewsigning.Thecontractvaluewas45.68billionyuan,anincreaseof167.2%overthepreviousyear.Themainconstructionenterprisesrealizedatotalprofitofabout1.1billionyuan,anincreaseofnearly30%overthepreviousyear.Majormembercompanieshavecompletedmorethan7billionyuanofoverseascontracts,andgreatprogresshasbeenmadeinoverseasoperations. YuJinboalsosaidthattheinternationalanddomesticsituationthisyearismorecomplicated.First,theinternationalengineeringcontractingmarketfacesprotectionistrestrictionssuchasmarketaccess,technicalbarriers,andlaborimportrestrictions,resultinginshrinkinginternationalmarkets,insufficientdemand,andincreasingmarket,security,andpoliticalrisks,whichhaveaverynegativeimpactonconstructioncompaniesgoingoverseas..Secondly,thelocalfinancialrisksandthecoldeningoflandmarkettransactionshaveconstrainedthelocalinvestmentfinancingcapacity.Theriseofcorporatefactorcostshasbecomethenorm.Itwillbringmorechallengestoenterprisestoundertaketasks,recoverfunds,reducecostsandcontrolprojectrisks. YuJinbostressedthatconstructionenterprisesshouldcontinuouslyincreaseinvestmentinscienceandtechnologyinnovation,strengthentheconstructionofprojectmanagementsystem,andimproveriskmanagementandcontrol. Atthemeeting,19chemicalunitssuchasChinaChemicalEngineeringThirdConstructionCo.,Ltd.wereawardedthetitleofAdvancedUnitforQualityEngineeringinthechemicalindustry,and27peopleincludingZhouQinghaiwereawardedthetitleofoutstandingcontributiontoqualityengineering.

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Chemical companies go out to the world

AlthoughChinahasbecometheworld'ssecondlargesteconomy,ithasfewexcitingachievementsintermsofoverseascapitaloutput,overseasinvestmentandconstruction,ortheestablishmentofwell-knownoverseasbrands.Itisparticularlyworthmentioningthatcomparedwiththeoveralllong-termsurplusofChina'sforeigntrade,thechemicalimportandexporttradehasbeeninadeficitsituationformanyyears,andtheindustry'sweakpositionisfullyshown.Inordertocompletelyreversethispassivesituation,thechemicalindustryshouldgathercourageandbuildconfidence.Inparticular,agroupofadvantageousenterprisesshouldtaketheleadinimplementingthe“goingout”strategyandseekdevelopmentoverseas,soastoachieveinternalandexternalinteractionandcreateachemicalindustry.Greatcountry. Theauthorbelievesthatforchemicalcompanieswithlargeexportsharesandforeigntradecompanieswithstrongcapitalstrength,inviewofthecurrentglobaleconomicdownturn,assetpricesfalling,andthecontinuousappreciationoftherenminbi,iftheycanactivelyimplementthestrategyofgoingglobal,seizeOpportunitytobuildafactoryoverseasisatimelyandsignificantevent. First,theappreciationofthelocalcurrencyhasgreatlyincreasedinvestmentefficiencyandsuccessrate.Inrecentyears,theRMBexchangerateagainsttheUSdollarhashitrecordhighs,whichmeansthatthesameamountofRMBhasincreasedpurchasingpowerintheinternationalmarket.Inthiscontext,whetheritisinvestinginoverseasfactoriesorimplementingmergersandacquisitions,itcansavealotofinvestmentcostsandimproveinvestmentefficiency.Atpresent,thesequelaofthefinancialcrisishasnotsubsided,andtheimpactoftheEuropeandebtcrisisisstillspreading,leadingtothestagnationorretrogressionofsomecountries'economies.Atthistime,investinginthesecountriestobuildfactories,whileincreasingemploymentopportunitiesinthelocalarea,hasalsoincreasedlocaltaxes.Itiseasiertoobtaingovernmentsupport,andthesuccessrateofsettingupfactoriesnaturallyrises. Second,itcanalleviatethepressureofovercapacityinChina.Atpresent,domesticchemicalproductioncapacityhasenteredastageofstructuralexcess,anditisnotuncommonforloss-makingoperationsandcompetitiveprice-cuttingexports.Theresultofinternalconsumptionistosacrificetheinterestsoftheindustry,buttomakeoverseascheap.Byinvestingandbuildingfactoriesabroad,itcanreducethesupplyofsimilarproductsintheinternalmarket,easethecontradictionbetweensupplyanddemand,andhelpimprovetheoperationqualityofexistingenterprises.Atthesametime,inviewofthelong-termupwardtrendofinternationalcrudeoilprices,seafreightrateswillrise,andoverseasfactorieswillavoidlong-distanceshipping,andlocalproductionwillnotonlyimprovethegrossprofitofproductunits,butalsoenablelocalconsumerstoobtaincheaperprices.Wumeiproducts. Onceagain,tradebarrierscanbeeffectivelyavoided.Inrecentyears,China'sexportproductssuchasrubbertires,phosphates,glyphosate,polysilicon,etc.,oftenencounter"double-reverse"investigationsintheimportingcountries,seriouslyaffectingthereputationofChina'schemicalindustryinoverseasmarkets,andalsomaderelatedcompaniespayExcessiveresponsetoenergyandexpenses.Thedirectestablishmentoffactoriesoverseas,theprocurementofrawmaterialsonthespot,localsales,effectivelyavoidingtradebarriers. Finally,itisconducivetoimprovingthetradestructureandimprovingtheoverallqualityoftheenterprise.ThereasonwhyChina'schemicalforeigntradehasalargedeficitisthatthemainreasonisthattheexportismainlyprimaryproductswithlowtechnologycontentandlowaddedvalue,whileimportsaremainlynewmaterialsandhighvalue-addedproducts.Atthesametime,therearealsoMultinationalcorporationshaveaconsiderablerelationshipwithincreasinginvestmentinChinaeveryyear.Therefore,ifsomeoftheadvantageousprojectsaredeployedoverseas,itwilloffsetsomeofthetradedeficitandimprovetheoverallchemicalforeigntradesituation.Inaddition,duetothedirectparticipationintheinternationaleconomiccycle,alloverseasbusinessoperationsmustbecarriedoutinaccordancewithinternationaltradepractices,soitiseasiertointroduceadvancedmanagementmethodsandrapidlyimprovetheiroverallmanagementlevel.

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