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Technological innovation helps the chlor-alkali industry overcome the \"cold winter\" and welcome the arrival of spring

2015-12-22View Original

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Technological innovation helps the chlor-alkali industry overcome the \"cold winter\" and welcome spring 2015-12-21 Chlor-Alkali Industry Network Under the new economic normal, issues such as overcapacity within the chlor-alkali industry have become quite severe, and companies are increasingly seeking ways to transform and upgrade themselves. The old approach of \"expanding capacity to increase production\" is also gradually being abandoned by enterprises, with technological innovation helping them to withstand the industry’s \"cold winter\".   Sodium hydroxide and polyvinyl chloride serve as basic chemical raw materials. Along with the growth of the national economy, the production growth rate has remained at 10% for over a decade, but in 2015 it experienced negative growth for the first time. This sends a signal that, under the new economic normal, issues such as overcapacity within the chlor-alkali industry have become quite severe, and companies are gradually stepping up their efforts to pursue transformation and upgrading. The old approach of \"expanding capacity to increase production\" is also gradually being abandoned by enterprises, with technological innovation helping them to withstand the industry’s \"cold winter\".   In 2015, the PVC market was in a state of overall weakness; the lowest price for type 5 material in Guangzhou was 4,600 yuan per ton, representing a 20% decline compared to the beginning of the year ; After reaching a peak in the second half of the year, the price of caustic soda declined towards the end of the year due to a lack of support in the market. The lowest price for 32% ion-exchange membrane caustic soda in Shandong was 430 yuan per ton, representing a 7% drop from the beginning of the year. Faced with the ongoing weak market conditions for chlor-alkali products in 2015, a \"cold winter,\" most companies in the industry were deeply concerned. However, some companies have also continued to grow and strengthen through strategic approaches such as technological innovation, the development of new products, and expanding their operations overseas, even in this \"cold winter\".   At the \"2015 National PVC Technology Conference\" held in Guangzhou on December 10, the development models of Baotou Lianfeng Rare Earth New Materials Co., Ltd., Xinjiang Tianye Group, and Gudi Technology Co., Ltd. demonstrated the benefits brought about by \"transformation and upgrading\" as well as \"technological innovation\". The executives of these companies said that despite the sluggish market for polyvinyl chloride, there are still opportunities for growth for companies in both the upstream and downstream sectors.   For example, the polyvinyl chloride rare earth heat stabilizer developed by Baotou Lianfeng Rare Earth New Materials Co., Ltd. has been put into use in polyvinyl chloride production lines, **improving the quality of polyvinyl chloride ; Xinjiang Tianye Group follows a strategy of \"improving quality and efficiency while redefining the cost model.\" The new products such as methanol and coke powder are made from wastewater, waste gas, and waste residues generated in the production of polyvinyl chloride. While conserving resources, it also reshaped the company’s product portfolio. Guodi Technology Co., Ltd. has implemented a strategy of expanding its operations overseas, exporting its products to various countries and regions in Africa and the Middle East, and has emerged as a leader in the downstream PVC pipe industry. These companies have brought a touch of warmth to businesses in a \"hard winter\" period.   However, issues such as overcapacity and environmental pollution in the industry are cause for concern. As Sun Zhijun, executive president of Gudi Technology Co., Ltd., is worried about, we should reflect on the PVC industry and on China’s manufacturing sector as a whole. At the same time, he also put forward a development strategy: “Polyvinyl chloride and caustic soda are **basic industries**. Today, as a **, I must reflect deeply on how to protect these products. While producing general-purpose PVC materials, PVC manufacturers also focus on developing specialized materials. With increased interoperability among downstream pipeline companies, and affected by the decline in the domestic economy, they need to work together to survive. ”   Speaking of technological innovation, Zhang Xin, deputy secretary-general of the China Chlor-Alkali Industry Association, said, \"As the most significant factor, technological innovation is a key focus at this year’s PVC technology conference, which also emphasizes improving quality and efficiency as well as achieving sustainable and coordinated development in the industry.\" ”He said, “Adjusting the structure and emphasizing environmental protection all rely on technical support.” ”   Zhang Xin suggested that in the future, industry enterprises should focus on three aspects of work. First, place emphasis on optimizing the manufacturing process. Achieve improved quality and efficiency, enhance product quality, particularly through reinnovation in the circular economy, with an emphasis on technological innovation in the connection stages. Second, emphasis should be placed on low-mercury catalysts and technologies for mercury pollution control; to ensure the efficient performance of low-mercury catalysts, centralized processing methods and technological upgrades are necessary. Use pollution-free technologies to address pollution control. Third, prioritize the green development of the entire PVC industry chain. The adjustment and development of PVC polymerization formulations must adapt to the production capabilities of enterprises and the trend toward greener practices.   Despite the difficult times facing the chlor-alkali industry, there are still opportunities for growth in the market. Guided by policies such as the **Belt and Road Initiative** and those focused on the supply side, new technologies such as the recovery of acetylene gas from calcium carbide slurry, along with new processes like methanol-to-olefins (MTO) and advanced wet and dry acetylene production methods, are being employed to revitalize the chlor-alkali industry. It is imperative for industry enterprises to pursue technological innovation, expand into downstream application areas, and follow a path of green, environmentally friendly, and efficient development in the future. “Once the \"cold winter\" passes, spring is not far away.

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