Mergers and reorganizations increase industrial concentration

Business Club December 10th, December 2nd, at the 5th China Petrochemical Technology Summit 2010, Jiang Xinmin, deputy director of the Energy Development and Energy Center of the National Development and Reform Commission, stated that during the “12th Five-Year Plan” period, China’s top 100 oil and chemical companies The proportion of corporate sales revenue to the industry has increased to one-third, and the number of companies with sales revenue exceeding 100 billion has reached more than 10.

He said that the overall thinking is to adjust the structure and enhance industrial competitiveness. The goal is to realize the “big change” of China's petrochemical industry and to cope with competition from the international market.

Jiang Xinmin stated that the core task of structural adjustment during the “12th Five-Year Plan” period is to develop high-end petrochemical products, lead the development with differentiated, high-value product technologies, realize the diversification of raw materials, and accelerate the internationalization process. Structural adjustment involves various aspects such as layout optimization, merger and reorganization, park development, industrial integration, and eliminating backward production capacity.

He said that the goal of the "12th Five-Year Plan" period is to further optimize the corporate structure. By 2015, a number of 20 million-ton oil refining market bases will be formed. The average size of refineries across the country will exceed 600 tons per year, and several 2 million-ton ethylene production bases will be built at the same time.

During the “Twelfth Five-Year Plan” period, the important development areas of the petrochemical industry are the Yangtze River Delta, Zhusan Solutions and the Bohai Rim. The industry is further concentrated in the above areas, and the concentration is further enhanced. The refined oil “Northern Petroleum South” situation has been improved. He said that the Yangtze River Delta includes northern Jiangsu, Anhui and Zhejiang. The Pearl River Delta also includes the Haixi Economic Zone in Fujian Province and the southeastern coastal areas. The Bohai Rim region also extends to Liaoning and Dalian.

In addition, he said that the structure of raw materials during the "12th Five-Year Plan" will be more optimized. Diversification of ethylene raw materials, the proportion of coal, heavy oil to olefins increased to more than 20%, the proportion of natural gas nitrogen fertilizer has declined, the utilization efficiency of low-grade coal resources and low-taste plants has been further improved, and the proportion of salt halides used in salt chemical raw materials reached over 80%. The proportion of ethylene raw materials in PVC has further increased.

Jiang Xinmin said: During the "Twelfth Five-Year Plan" period, the average size of ethanol plants reached 600,000 tons/year or more. Traditional industries such as nitrogen fertilizers, pesticides, chlor-alkali, soda ash, calcium carbide, etc. were eliminated through backward elimination, and mergers and reorganizations reduced the number of companies and increased industrial concentration. ”