The prospects for the polyoxymethylene project are not optimistic

Thread Content

Company Capacity (10,000 tons) Remarks: Yuntianhua – 3+6; existing capacity of 30,000 tons, with plans to build an additional 60,000 tons. The planned investment is 149,600 yuan, while the actual construction cost will be 138,700 yuan. Construction will take place in the Chongqing Changshou Industrial Park in three phases; the first phase with a capacity of 20,000 tons is scheduled to start operations in 2008, with the remaining two phases starting in 2010. It is a joint venture between Nippon Boride, Mitsubishi Gas Chemical, and Ticona. 6: Jointly funded by Nippon Boride Co., Ltd., Mitsubishi Gas Corporation, TICONA Company of the United States, and a South Korean engineering plastics company. The total investment is 140 million US dollars. This venture established Baotailing Engineering Plastics (Nantong) Co., Ltd. in Nantong, Jiangsu, to build a production facility with an annual capacity of 60,000 tons of polyoxymethylene. This facility began operating in October 2005. Henan Yongmei, Tianjin Alkali Plant, Ningxia Shenhua, Inner Mongolia Tianye – 4+6; under construction, with operations set to begin by the end of 2009. Shanxi Lanhua Kechuang, **Huaming Group Co., Ltd., Foxconn Technology Group of Taiwan, and Indocement Tunggal Prakarsa (China) Investment Co., Ltd. – 10; planned to be built in Jincheng, Shanxi. Lanxing Group – 4+6; located in the Shanghai Xinghuo Development Zone. The first phase with a capacity of 40,000 tons is scheduled to start operations by the end of 2007, while the second phase with a capacity of 60,000 tons per year has already begun construction, with completion expected in 2010, resulting in a total capacity of 200,000 tons. DuPont and Nippon Asahi Kasei – 2; located in Zhangjiagang, Jiangsu. The investment amount is 69 million US dollars for the production of copolymerized polyoxymethylene. The 20,000-ton capacity has already been put into use. Xinjiang United Chemical – 4; under construction, not yet in operation. As of the end of 2008, China’s production of polyoxymethylene was likely 9+6+4+2 = 210,000 tons. By the end of 2009, it should have been 9+6+4+2+4+4 = 290,000 tons. Year, Production Capacity, Import Volume, Export Volume: 2006: 110,000, 180,000, 40,000; 2008: 210,000, ? ? As can be seen from the above data, the increase in polyoxymethylene production in 2008 served not only to meet demand from downstream industries but also to displace a small amount of imported products. Once the first-phase polyoxymethylene production facilities of China’s major coal chemical companies are put into operation in 2009, fierce competition will begin; if no strategic moves are made, those companies will be forced to engage in direct competition. Remember, the previous two versions are a double-edged sword; modifications cannot solve the problem.