China's chemical industry transfer investment focus on new materials
China's chemical industry transfer investment focus on new materials
May 10, China petroleum and chemical industry association and the international management consulting firm a.t. kearney, jointly held a conference to China's chemical industry global opportunities report, and puts forward the chemical industry investment will shift to the new material.
"China's foreign chemical investment is mainly a merger and acquisition transaction, rather than a new factory investment, and it has always been dominated by some large state-owned enterprises." Kearney partner li jian, said at a conference in hair "in all the way ' 'area, under the policy of China's overseas merger and acquisition of center of gravity, the chemical industry is gradually shifted from the traditional field of new materials and modern chemical field."
"At present, the overseas m&a of chemical enterprises in China is also more speculative, which is often introduced by third parties and pays more attention to the business volume of the acquired company." Thomas Luedi, a managing partner in the energy chemical industry in cornea, said in a press release. He points out that the success of the chemical industry investment, depends largely on the competitiveness of the use of raw materials, so the petrochemical enterprise is necessary in a series of price situation carefully assess raw materials related to investment.
According to the report, on a global scale, with the various regions in raw materials such as natural gas, liquefied natural gas and coal in the field of differentiation, area and raw material will be further intensified competition, raw material prices will fluctuate, market balance mechanism show signs of instability. In addition, the consumption characteristics of developing countries may demand different path with the developed country, part of the value chain of the demand of the chemicals will peak, unable to provide solutions and custom pattern can't run a terminal market of chemical enterprise, will gradually become a component suppliers in the market competition.
In addition, li said, Mr. Kearney's successful case and summary of overseas mergers and acquisitions have concluded that the success of a chemical company's acquisition is inseparable from three factors. First of all, when deciding whether to make a merger or acquisition, China's chemical industry must stick to the strategy and have a good strategy on the first day of the merger. In addition to having a strict rules and an experienced m&a team, don't go with the flow; Finally, it is necessary to make unremitting integration work in the merger and acquisition, emphasizing process and talent, and make clear that sometimes speed is more important than quality.
Since 2010, the annual growth rate of foreign investment in China's chemical industry has reached about 80 percent, and the total foreign investment in China's chemical industry reached 88 billion yuan in 2016. In addition, there are 394 billion yuan of foreign investment transactions has announced but not yet completed, including the current China's largest overseas investment in mergers and acquisitions, China chemical industry group co., LTD. For $43 billion (289 billion yuan) to buy Swiss agricultural chemicals maker syngenta. Since the acquisition of overseas mergers and acquisitions, China chemical group has accumulated a total of 228 billion yuan worth of outbound mergers and acquisitions.
Domestically, China's chemical industry is expanding its chemical industry base and chemical industrial park. At present, China has four has completed the annual output of 2000 ton of refining bases and nine megaton ethylene production base, 381 scale with superior chemical industrial park, thus forming the integration of upstream and downstream industries of chemical production base.
"Some of the cost advantages of China's chemical industry will gradually disappear. It is necessary for China's leading chemical enterprises to explore new growth markets and achieve globalization through merger and acquisition activities." Zeng jian, executive deputy secretary of the petrochemical federation, said at the meeting. He pointed out that the future is noteworthy, China has three areas including focus on raw materials and low cost of raw materials in the areas of competition, high profits, or high growth areas and move into main market areas through globalization and localization, the natural rubber and tires, chemical engineering, to ensure that play a key role in China's petrochemical industry and stable growth.
Last year, China's oil and chemical industries accounted for 13.3 trillion yuan in revenue, or 11.5% of the total revenue of industrial enterprises in the country. From the countries concerned, China imported 240 million tons of crude oil from the Middle East, central Asia and Russia last year, accounting for 62.8 percent of total imports. Imported natural gas was 3047.10 million tons, accounting for 56.3% of the total imports. From southeast Asia, South Asia and other countries to import natural rubber 24.62 million tons, accounting for 98.4% of total imports; Exports of fertilizer to south and southeast Asia amounted to 16.538 million tons, accounting for 59.4% of the total export volume. The export of polyvinyl chloride and caustic soda respectively reached 1 million tons, accounting for about 95% of the total export volume.
