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Five Provinces’ Fertilizer Industry Seeks New Paths for High-Quality Development Author/Source: Sinochem News Network Date: July 5, 2019 Clicks: 19 One Approach with Multiple Outcomes: Combining Fertilizer Production with Related Activities According to Sinochem News Network, what is the path to high-quality development for China’s fertilizer industry? At the 9th Symposium on the Development of the Fertilizer Industry in the five provinces of Henan, Jiangsu, Anhui, Hebei, and Shandong, held over the weekend, experts and enterprise representatives said that it is necessary to make breakthroughs in fertilizer technology innovation, to expand the product portfolio toward higher-end chemical products, and to build on existing advantages by adopting an approach that combines multiple activities under one framework, thereby integrating fertilizer production with related activities. “The five provinces of Shandong, Jiangsu, Henan, Anhui, and Hebei are major producers and consumers of chemical fertilizers in China. However, due to factors such as the policy of zero growth in fertilizer production, reductions in coal consumption, overcapacity in fertilizer production, the relocation and renovation of hazardous chemicals manufacturers, and rising environmental standards, fertilizer companies in these provinces still find themselves in a difficult situation. Moreover, the uncertainty in the macroeconomic environment poses potential impacts on fertilizer demand. ”Yang Chunsheng, former president and senior advisor of the Shandong Province Fertilizer and Coal Chemical Industry Association, said that high quality and high-end development are the directions for the industry’s growth. High-quality development refers to a form of growth that emphasizes quality over quantity; it involves making use of limited energy and resources, and through innovative approaches, maximizing economic and social benefits while ensuring environmental sustainability and safety. Xia Yingbiao, honorary president of the Anhui Fertilizer Industry Association, believes that the current market situation is not optimistic. Fertilizer companies must adopt differentiated production and operation methods, focusing on new types of fertilizers such as microbial organic fertilizers, organic-inorganic compound fertilizers, water-soluble fertilizers, and soil conditioners, in order to overtake their competitors through innovation in technology and agricultural services. Zeng Xianjun, secretary-general of the Jiangsu Fertilizer Association, said that although the key nitrogen fertilizer manufacturers in Jiangsu are continuously expanding in scale, their products mainly consist of simple nitrogen fertilizers, and there is a lack of new types of nitrogen fertilizer products that can be used in conjunction with advanced application techniques. Therefore, efforts should be made in optimizing the product structure, developing new types of fertilizers, and enhancing services. Su Dong, executive vice president of the Henan Petrochemical Association, said that the transformation and upgrading of fertilizer enterprises can be divided into three categories: the first is to adhere to new processes and low-cost approaches in order to achieve sustainable development. Jiangsu Linggu is a representative of this model of transformation; secondly, it moved away from the use of chemical fertilizers and shifted to the chemical industry. Companies such as Luxi Chemical, Pingmei Shenma, and Jindadi have all achieved successful transformation as a result; thirdly, it involves having multiple outputs and pursuing both fertilization and chemical production simultaneously. Henan Xinlianxin has pursued a differentiated transformation in its fertilizer products, developing three series of high-efficiency fertilizers: humic acid-based, polyenergy network-based, and loss-control types. At the same time, it has accelerated its expansion into the chemical industry, adopting a strategy that relies on two different business areas. “At present, in domestic fertilizer companies that have achieved successful transformation and development, the revenue generated from fertilizer sales accounts for only 15% of the company’s total sales revenue; the remaining portion comes from chemical products, which are all produced through further processing of fertilizer by-products. Therefore, it is very important to deepen and broaden the path of further processing fertilizer by-products, make full use of existing advantages, extend the chemical industry chain downward, and shift toward products with higher added value. For example, using the hydrogen produced as a by-product in fertilizer factories to manufacture high-quality electronic-grade hydrogen peroxide can **increase the added value of the product. ”Yu Zifang, senior advisor to the Fertilizer Committee of the Chinese Chemical Society, said. Bai Yanqi, executive president of the Hebei Province Nitrogen Fertilizer Industry Association, said that high-quality transformation and development for fertilizer companies is an inevitable trend in the future, as these companies sell not only products but also services. Therefore, it is not only necessary to focus on improving the quality and efficiency of products as well as expanding their diversity; integrated services that accompany these products are even more important, so that companies can achieve greater success and progress. The delegates present unanimously adopted the \"Initiative on Promoting Quality Improvement, Efficiency Enhancement, and High-Quality Development in the Fertilizer Industry across the Five Provinces.\" The Initiative emphasizes the need to rely on provincial fertilizer industry associations in order to establish a regional platform for the five provinces, one that facilitates information exchange and interaction regarding strategic positioning, industrial policies, and technological progress in the fertilizer industry. In line with the principles of large-scale and modernized industrial development, these five provinces’ fertilizer enterprises are guided to pursue a new path of high-quality development.