Chinese market undoubtedly has a fatal attraction, for the global chemical giant BASF, Bayer, INVISTA, LANXESS, Praxair etc., the market seems to always have unbounded imagination.
Along with the China petroleum and chemical industry more than and 30 years of high growth, is a multinational chemical company from pure product output to build offices to the building, to set up wholly-owned companies and joint ventures, and then to the development process of &mdash localization system; — many partners and their China together, promote the sustainable development with the prosperity of the entire chemical industry.
However, in 10 years, 20 years, or even 30 years, multinational chemical companies are really “ read ” China's real answer is obviously between yes and No. The only thing that can be sure of forever is “ change ”. Those with flowers, champagne, red carpet welcome to the era of chemical giants is certainly gone.
There is no more than “ feeling the stones across the river ” more able to accurately describe the multinational chemical companies in China mentality. But Chinese companies have to cross the river by feeling the stones, foreign companies are difficult to go beyond this stage. And — — for more than 30 years, many companies have not touched the stone and rolled into the river.
The industrial process is likely to be the policy of a thousand li a day, partners, competitors, changes in technical level may also make a person dazzling; China market sometimes let multinational chemical enterprise elusive, general enemy Potter five forces analysis and Boston matrix standard but Sun Tzu and traditional wisdom. Even in reading Chinese national leaders, even familiar with the characteristics of &rdquo, “ China; chemical giants face some pressure and risk, is clearly not the opportunities brought about by the small than expected.
Management professor Juan · Antonio · Fernandes's long term research on China's business environment. He likened the "relationship" in a book, multinational corporations and Chinese partners (officials, trustee and a buyer) often have a certain degree of convergence, as a partner, a male partner to jump too fast while the female partner is cautious, for multinational companies, and how to keep the business environment is difficult to keep step with China lesson — — there is no exception for some multinational chemical companies.
So, for Chinese cultivating the local market, and then obtain the competitive position of the industry giants, facing the new normal, new policies, new environment, new competitors, opportunities and risks are what they see? In this regard, China petroleum and chemical industry association made a survey, they and BASF, Dow, Bayer such as a dozen senior executives from multinational corporations to do a full exchange, get valuable first-hand information.
Although the different business strategy, market and investment strategies vary, but they also have obvious common point of view, the whole can be summarized as: the importance of China market there is no doubt that the future Chinese market investment basically maintained a high level, but the current of industry overcapacity worrying; energy demand, water resources the change of population structure, urbanization, and motorization may bring profound revolution of the industry; pay more attention to the cost control, profitability, growth and development of the market value orientation; market reform of chemical industry is full of expectations, the more free and fair market environment full of desire.
Qian Mingcheng, President of Greater China LANXESS
Overall, the market does not adapt to the innovation will not have a future, both must be closely related. Historical experience shows that, even if the research and development of good products, but there is no market demand to do support will be eliminated.
Based on the core business of LANXESS we think face four future trend of global development: Green City, motorized, clean water demand and the sustainable development of agriculture, especially in motorization and LANXESS city.
After 30 years of reform and opening up, the industry must be upgraded to meet the challenges of the future. Transformation is a painful process, and constantly improve the requirements for safety, environmental protection and health of the transformation process, this process is a mighty wave crashing on a sandy shore. Industry to achieve the transformation and upgrading of the government, industry, associations and other relevant stakeholders to cooperate, but also to consider important aspects of social stability.
LANXESS, to achieve long-term development, to create a long-term stable and clear policy environment is crucial. For example, China's environmental policy trend is undoubtedly correct, but the stability is not enough, the policies of different provinces are not clear, different projects may face different ways to deal with. In addition, there is the problem of the lack of policy coherence because of the replacement of the local ruling leadership. We believe that with the deepening of reform, these will be further improved.
For chemical enterprises, the pressure from raw materials is very large. To a certain extent, raw materials and market decisions to invest. For China, the supply of raw materials is short board, the market demand is an advantage. The degree of concern in the future open LANXESS policy, mixed ownership will be the focus of the expected future supply of raw materials will be more market-oriented. In the past 2004, LANXESS chemical business from Bayer from the Asia Pacific assets is only 5%, while in 2015 this figure will reach 35%.
Miao Bole, President of the Greater China region of Bayer Group
Bayer can not ignore the existence of a variety of challenges, for example, the phenomenon of short-term overcapacity can be understood, long-term overcapacity will bring greater problems.
In the Chinese market, in the past 15 years, Bayer in the construction period, mainly for human, material, financial and R & D investment. But in 2015 or 2016 will enter into force, that is to seek higher efficiency and better customer service in the basic construction completed, and this Chinese human centered urbanization, environmental protection and efficiency through the pursuit of higher to achieve a new wave of growth consistent.
From the regional strategy, the overall idea is to maintain close communication with partners, customers. For example, when customers started from the coastal area to central China, Bayer pace also follow to this area, begin at the same time through the establishment of sales offices, factories and other ways to support the system of material support has turned to the central regionCustomer group.
Innovation is indispensable, the most important is the efficiency and concentration of two aspects. We are trying to achieve through the breakthrough of the production process innovation, and to achieve the integration of people, the earth and the profit of the three. In view of the main products is Bayer polymers, product maturity is high, do not need to invest has no too many resources in the field of basic scientific research, therefore the present stage innovation mainly focus on customer oriented aspects of product application.
IT, automotive, electronics, electrical, construction and paint industry development will drive the demand for high-performance materials. Global 50% of the automotive industry, 60% of the furniture industry, 80% of the footwear industry in Asia, which means that the future of the huge market potential.
From the perspective of Bayer three overcapacity problems: first, the Ministry of industry, development and Reform Commission and other relevant management departments can adjust the production capacity through scientific means, to ensure the industry's production capacity and market demands; second, overcapacity is the embodiment of investment overheating; third, the relevant departments should continue to strengthen enforcement policies and regulations.
Global vice president of air products company Philip
China air separation market competition is very fierce, and the full communication with customers and the profound understanding of customer operation model has become an important competitive source of air products company.
China's coal chemical industry has ranked first in the world. The next 70% of the world's air separation devices are expected to be sold to china. China's coal chemical industry will become one of the world's most important air separation market.
Generally speaking, the competitiveness of coal chemical projects with the extension of industrial chain and value-added products increased; at the same time, major changes in the international energy market pattern caused by the North American shale gas development will significantly affect the level of competitiveness of coal chemical projects. As for coal to methanol, is expected by the North American shale gas prices will remain relatively low level for a long time, the company in the United States announced new methanol natural gas project has a total of 14, compared to these projects and Chinese coal methanol project has a strong cost advantage, with the release of production capacity will have a greater impact on the economy Chinese the market of methanol and coal to methanol project.
In this regard, air products and other enterprises are trying to adapt to the diversification of petrochemical raw materials and light of the trend, on the one hand, based on the appropriate input to actively grasp the coal to olefin project opportunities, on the one hand the steam methane reforming to synthesis gas technology in the world leading level, can seize the opportunity for development of shale gas industry.
In the face of coal chemical industry and supporting air separation project investment greater challenges, development of air products hand tracking industry and customers and the level of competitiveness in the world and China, sustainable scientific assessment project, the implementation of prudent investment; on the one hand, a large proportion of an annual $2 billion investment budget invested in China, keep expanding. At the same time, air products through the localization of equipment and other means to reduce the cost of construction equipment, in the past three years, take a series of effective measures for air products, the large air separation device cost decreased by 30%.
From the macro industrial environment, the environment, energy and emerging industries are the driving factors of China's economic development, and improving the labor productivity is the key to maintain and enhance the international competitiveness of china. Understand, the air products based on industry segments and for China chemical industry we think can be improved from the following four aspects of the optimization, further promote the transformation and development of chemical industry, chemical industry park: promote infrastructure service specialization and integration; two, simplify the examination and optimization plan; three, improve environmental protection energy efficiency and carbon emission reduction and other regulations and standards will help to promote innovation in these areas; four, improve labor productivity.
Serra nice senior vice president of Asian Affairs Ou ou
As a part of the supply chain, Celanese Co will not be the first batch of enterprises to the west, but to follow the car, electronic and other customers and transfer.
The Chinese market is showing three major trends. First, with the slowdown in the growth rate of GDP, market competition intensifies, the future of the Chinese market to find opportunities to be more difficult than before, these opportunities are not universal existence, but to be based on business and market to find.
Secondly, the regional strategy of the Chinese market has been transferred. In East China in the past, enterprises will be able to complete the regional layout, such as Shanghai and Jiangsu, and other provinces and cities, enterprises in the south of the strategic model of the market is similar. Today, customers reflect the two trends, one to the western transfer, the two is to go out of china. At present, Serra nice western investment is still in the early stages, but the next 2-3 years, Serra nice to determine how to implement the western strategy. A page out of the China trend, more and more enterprises to implement &ldquo in the Asia Pacific region; Chinese l” or “ 2&rdquo China; strategy, that in addition to the layout of China market, but also to Malaysia, Indonesia, Vietnam, India and other Asian countries.
At the end of the last, the Chinese market transfers from the fund to the talented person. 5-10 years ago, China market driven by capital investment, such as investment funds, but now the factors driving has become increasingly low, people tend to investment driven mode, namely, engineers, sales personnel, business talent, talent market and the value of higher than the investment in the factory.
For Serra nice, in the beginning of China's main value two factors: market space and have the price advantage of the supply of raw materials. Compared with the United States and the Middle East, the cost advantage of China's raw materials are gradually decreased. For example, the price of coal is two times 8-9 years ago, while the price of natural gas in the United States is reduced by half, but this does not affect the importance of Serra nice to the Chinese market. From the investment strategy, Serra nice for different regions to implement different investment strategies, for example, driven by the energy cost of the selection of business investment in the United States, close to the customer's business needs such as plastic, in China investment, or in close proximity to other parts of Asia investment market Chinese.
There are three goals of Serra ness in the Asia Pacific region development: increase profitability, and the challenge now the environmental requirements of the business and increase profitability, Serra nice current business did not achieve the desired profit target; must be re layout in the Asia Pacific region, especially in the current is not involved in the business field, in order to achieve profitable growth; the establishment of a more efficient operationOrganizational structure to achieve profitability growth.
In order to achieve these three goals, Serra nice to seize the market demand, optimize the internal operating costs, optimize raw material contracts, cooperate with the government and industry associations, and increase the product sequence through the acquisition, there is no expansion of business and product series, but in the future there is room for profit, and look for opportunities to expand in emerging markets in Vietnam, Indonesia Chinese, and India etc..
INVISTA global senior vice president Ke Ruonan
We would like to see the energy industry, including the market reform of natural gas, coal and other industries, the diversification of energy prices and market support producers.
The process of urbanization and the expansion of consumption class are the main driving forces of China's economic growth, and the excess capacity is an important issue in China's economic development. For example: in recent years China caprolactam new capacity has accounted for 20% of global production capacity.
The main factors Chinese overcapacity problems include: 1, the lack of exit mechanism of backward production capacity; 2, excess capacity duplication lvjinbujue, chemical fiber industry of some products in the industry average profit rate has been low and close to 0, but the new capacity is still being constructed; 3, “ &rdquo and “ autonomy of technology; the market self ” on the implementation of short-term market protection, some enterprises are keen on technology for the domestic blank, dependence on imports of construction investment products &ldquo high degree; the first set of &rdquo device; these first sets are often high cost, low efficiency, lack of market competitiveness, promote enterprises strongly urge the government to take anti-dumping measures on imports the product, the implementation of short-term market protection. But the anti-dumping measures and market protection, on the one hand, will cause the loss of other enterprises in the industry chain, on the one hand, in the short term will provide space for the construction of more backward production capacity, resulting in long-term overcapacity exacerbated.
In this regard, I believe that many multinational counterparts will have a similar appeal: first, to establish and implement a more free and fair market competition mechanism. Secondly, the development of a reasonable energy policy, which is the issue we are very concerned about. Market driven mechanism helps drive natural gas, including unconventional natural gas and other energy areas of investment and growth. Furthermore, strengthening the protection of intellectual property rights, encourage foreign enterprises will be the best technology introduced Chinese, and Chinese incentive enterprise independent innovation, enhance the technical level of the industry, to create innovation and market driven business environment. Finally, adhere to the scientific and rational energy conservation and environmental protection and greenhouse gas emission reduction policies.
Zhu Mingyue, President of Greater China
Now, the bulk of the special commercial products very fast, technical tips break period becomes shorter and the technical barriers to trade more and more low, if you do not have the ability to continue the scientific research innovation, relying solely on the product advantage advantage is more and more difficult.
The past experience of development: a multinational enterprise and even a big industry, must conform to the trend, timely adjustment of industrial structure. And in the process of structural adjustment and transformation and upgrading, research and development is the driving force. Therefore, the scale and overall strength of the enterprise is very important to the sustainable innovation capability. In the past ten years, the chemical industry in the special chemical companies have basically been acquired, and the amount of 60-80 billion euros in the size of the company is becoming the general standard of large enterprises mergers and acquisitions. This new round of integration of the chemical industry should pay attention to the phenomenon, Chinese enterprises can pay attention to multinational companies in the business process of the opportunity to adjust.
But for the moment, China's chemical industry is still facing challenges in five areas. First, the combination of industry over dispersion and local protectionism, hinder the adjustment of the entire economic structure. Second, structural overcapacity is still serious, a large number of redundant construction, the high-end gap still need to rely on imports. Third, safety, health and environmental pressures are increasing. Fourth, the need to improve the ability of scientific research. Due to various reasons, some enterprises have no ability to invest or no power input. Industry innovation can not completely rely on corporate consciousness, but also the need for government policy to promote. Fifth, chemical talent successor weakness.
Facing all kinds of opportunities and challenges Chinese market, will continue to focus on the future development of the innovation and operational excellence, is committed to sustainable development. We focus on 6 aspects related to the interests of our employees, customers, suppliers, community, environment and investment, and formulate the relevant commitments, to ensure that the business process, each stakeholders are fully respected and protected.
The future will take three growth means. One is the organic growth, not only by strengthening technological innovation, promote internal structure adjustment, improve the cost effectiveness, and achieve self growth; two is the epitaxial growth, namely through mergers and acquisitions, effectively accelerate the integration process; the three is the innovation growth. The key is to analyze the positioning of the business sector, which is the growth of the locomotive, which has a high resistance to the economic cycle and industry cycle, which needs to adjust the sale or strengthening, etc..