A Big Development is Coming in Fine Chemical Industry

Fine chemical industry welcoming its super development

Nov 28, 2012, 09:00 ET from LookChem

HANGZHOU, China, Nov. 28, 2012 /PRNewswire/ -- In recent years, along with continuous economic development and technological progress, the fine chemical industry has been in rapid development, with the speed obviously faster than that of the chemical industry as a whole. Up to now, fine chemical new materials and specialty chemicals have reached their average annual growth rate of 5 percent to 6 percent, 2 percent to 3 percent higher than that of the chemical industry. Besides, the production capacity of fine chemicals is close to 13.5 million tons/year, and its annual total output is nearly 9.7 million tons, with its annual output value more than RMB100 billion.

It is obvious that the level of fine chemicals has already been one major standard to measure the development level of the chemical industry in a country or region. Till now, there are more than 100,000 kinds of fine chemicals in the world, from this number we can see an unprecedented rapid development we have never seen in the fine chemical world.

Chinese enterprises walking towards the Fine Chemical Powers' Crowd

After years of development, our fine chemicals have become one important and independent branch, and also one new economic growth point in the Chinese chemical industry, with the formation of 20 to 25 categories till now. Among these, some categories have already formed a considerable scale, such as pesticide, dyes, paints, reagents, photosensitive materials, chemical pharmaceuticals and more. Additionally, some other categories have also begun to take shape, such as feed additives, food additives, industrial surfactants, water treatment chemicals, paper chemicals, leather chemicals, oil field chemicals, electronic chemicals, bio-chemical, and functional polymer industry. Our Chinese fine chemical enterprises are walking towards the fine chemical powers' crowd of the world.

According to the "Twelve Five" oil and chemical industry development guideline, it lists the nurture and expansion of strategic emerging industries as the main task. It also puts forward that they will form one list of growth points focusing on strategic emerging industries in the end of "Twelve Five," and they will also make sure the rate of fine and special chemicals will be increased by more than 45 percent.

As to the current situation, our Chinese basic chemical product market is in adequate supply with lower prices, and fine chemicals in the market is highly scattered. According to the incomplete statistics, there already exist 17,000 fine chemicals businesses, with the production capacity of 16 categories of 20,000 kinds of fine chemicals. At the same time, quite a few chemical companies have made great efforts to develop technology-intensive, high-precision processes, high value-added chemicals, and then focused on the fine chemical products as the industry's competitiveness.

Chemical platform pushing the industrial development

Along with that, some foreign chemical companies have begun to invest in our Chinese fine chemical industry, some production of fine chemical new materials with relatively high-tech content will then move to our country, which will contribute to the further development of our domestic fine chemical industry. Under these circumstances, LookChem has begun to put into this field to promote overseas export of our Chinese fine chemical enterprises. They have taken advantage of platform goodness and then integrated global resources, in order to promote it to be one "hit industry" in the foreign trade front.

Till November 2012, there will be more than 1,000 fine chemical enterprises as LookChem members, mainly with Zhejiang chemical enterprises. Taking Yantai Valiant Fine Chemicals Co. Ltd. as an example, this company has owned the technology of developing monomer liquid crystal, liquid crystal intermediates and more than 1,000 fine chemical compounds. It has already formed its development characteristics and competitive advantage in the fine chemical industry, and then has established good long-term relationships with foreign clients.

Suzhou Tianma Specialty Chemicals Co., Ltd. is another company with good prospects for the future. According to its sales principal, their orders for this year have been gradually increasing, with some chemical series obtaining good purchase quantity, including Fmoc-Osu series, deoxy-1--D-glucitol series, citicoline and other fine chemicals.

Seen from the current development in domestic fine chemical industry, the market space in the future will definitely be in rapid growth, owing to the industrial upgrading and intrinsic requests from consumer upgrading.