The way forward for the coal tar industry

Faced with increased consumption taxes, the coal tar industry can improve its situation through the following methods: 1. Technological innovation: Investing in technological upgrades to enhance the level of deep processing of coal tar, thereby increasing the production of high-value-added products such as chemical raw materials and pharmaceutical intermediates. 2. Product diversification: Develop and produce more varieties of coal tar derivatives to expand market applications and reduce reliance on single products. 3. Optimize production processes: improve efficiency, reduce energy consumption and production costs, in order to offset the impact of increased taxes. 4. Market development: Actively explore domestic and international markets, especially those emerging markets with high environmental standards, to enhance product competitiveness. 5. Environmental protection investments: Increasing investments in environmental protection facilities complies with **environmental policies. This may entitle enterprises to tax incentives or subsidies from the government, while also enhancing their corporate image and attracting more customers. .

I. Technical adjustments: Optimizing the production process – By improving the production process for coal tar, it is possible to enhance production efficiency and product quality, thereby reducing production costs and increasing profitability. For example, the coolers used in the coal tar processing process can be modified; for instance, a trinaphthyl oil cooler can be transformed into a vaporization-condensation cooler. By utilizing the vaporization potential of water, it is possible to reduce the amount of circulating water used, while simultaneously maintaining the quality and temperature of the product to meet the requirements of subsequent processing steps. Energy and resource conservation: Reduce consumption of various resources such as water, electricity, wind, and steam; lower production costs through technological upgrades. For example, the first and second stage pumps were modified from inlet gear pumps to domestic centrifugal pumps in order to reduce direct costs as well as expenses for spare parts and maintenance. The method of adding basic phenates can also be optimized, such as by using gravity flow based on the difference in liquid levels, in order to reduce power consumption. Environmental protection measures: Investment is made in the construction of environmental protection facilities and technological upgrades to meet increasingly stringent environmental requirements. This can not only help avoid environmental penalties, but also enhance the corporate image, which is beneficial for long-term development. II. Product adjustment: Enhancing the added value of products: Through advanced processing technologies for coal tar, high-value-added products such as industrial naphthalene, phenols, and anthracene can be extracted. These products have higher market prices and profit margins, which can enhance the profitability of coal tar. Product diversification: Adjust the product portfolio flexibly in response to market demands and price fluctuations to achieve product diversity. This can not only reduce market risks but also meet the needs of different customers, thereby enhancing market competitiveness. Brand and quality development: Strengthen brand promotion and quality improvement to enhance the product’s visibility and reputation. This helps to increase customer retention, as well as market share and profitability. III. Other Measures: Utilization of policies: Closely monitor changes in **relevant policies, such as those related to taxation, environmental protection, and energy, and make active use of policy incentives and subsidies to reduce production costs. Market expansion: Actively explore domestic and international markets, particularly emerging and developing markets, to increase sales channels and market share. Technological innovation and industrial upgrading: Increase investment in technological innovation and R&D to promote industrial upgrading and transformation, thereby enhancing the overall competitiveness of the coal tar industry. In summary, through the combined use of technical adjustments, product modifications, and other measures, the coal tar industry can reverse its declining profitability despite the imposition of a consumption tax. At the same time, this also requires enterprises to have keen market insight, strong technological innovation capabilities, and efficient management skills.