Large state-owned enterprises tend to invest in coal chemicals alike – is this a blessing?
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This post was last edited by jordan569 on 2013-1-6 at 22:36. Many large state-owned enterprises are now involved in the coal chemical industry; what are everyone’s opinions? Will it lead to duplicate investment and redundant construction? This post was last edited by Zhenzhen Youci on 2009-4-7 23:21. Note: $ # , $ $
The problem is that many large coal chemical projects require huge investments, and even large enterprises don’t have the money or the capacity to undertake them! This is also about **accumulating technical experience as a valuable asset.
I think this is a good thing. Large state-owned enterprises (such as Sinopec, CNPC, CNOOC, Shenhua, and China National Coal Group) have the funds and capabilities needed, as well as a commitment to pursuing policy objectives; projects in the field of coal chemical industry, which often involve investments in the tens of billions, truly require such conditions in order to develop. . . This post was last edited by Zhenzhen Youci on 2009-4-7 23:22.]
Coal chemical industry is a technology- and capital-intensive sector; it is difficult to achieve profitability without a certain scale of operation, which is why only large state-owned enterprises have the capacity to undertake such projects. As for the issue of redundant construction, most of these large state-owned enterprises are under the supervision of the State-owned Assets Supervision and Administration Commission; in terms of macro-control, they are regulated by the National Development and Reform Commission and the State-owned Assets Supervision and Administration Commission.
State-owned enterprises do relatively well in terms of safety; they can afford to suffer losses even in difficult circumstances. However, to determine how investments should be allocated properly and to avoid the accumulation of duplicate projects, **proper guidance is needed. For example, many large state-owned enterprises are currently investing in coal-to-methanol projects, but how many of them are actually making a profit?
I think **at the core, it is mainly a matter of energy security. It is not necessarily economically beneficial. Isn’t South Africa only just managing to turn a profit through by-products? Such coal chemical projects are basically loss-making. :Lol, don’t take pictures of me.
Large state-owned enterprises such as Sinopec, CNPC, CNOOC, Shenhua, and China National Coal Group have the funds and resources needed, and their real goal is to acquire resources; even the five major power companies are involved in coal chemical industries, but they are essentially selling something that isn’t what it seems. At present, efforts are being made to curb coal-based oil production, and it’s very difficult to get approval for related projects. Within three years, such facilities will have to be shut down or restructured, with 3–4 large groups left to deal with the resulting mess. There is a lot of waste, but the meat rots in the pots; investment helps to boost domestic demand
Hehe, can large-scale coal chemical projects proceed without money, technology, or connections? Large state-owned enterprises have an advantage in this regard!