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China Needs to Become 'Stronger' in PU, Not Just Bigger

https://www.chemnet.com   Jun 11,2010
China needs to become a “strong polyurethane manufacturer”, rather than just a big one, said Zhang Jie of the China Polyurethane Industry Association, in a presentation he wrote, but did not give, for the Korean Polyurethane Society’s International Forum, which was held in Busan on 1-2 June.
 
Zhang said that in the Chinese PU sector, thousands of small, non-consolidated processors constitute its total current use of about 5 million tonnes. Such small-scale producers with low technical expertise, not diversified, with a weak competitive edge and an aversion to risk, “have long been the problem of the industry”, Zhang commented.
 
Now the sector has the chance to seize an opportunity for change, he indicated, after the global economic crisis has forced the issue, causing the elimination of some PU products with “low technical content and low added value”.
 
Downstream PU product makers should take the opportunity to exploit new economic growth modes, to adjust their industrial structure, extend innovation and “raise the technical and quality levels of their products”, the CPUIA representative stressed.
 
China is committed to developing a low carbon economy, with certification and approval of low carbon products, to promote a whole value chain where consumers benefit from such products, said Zhang, characterizing this development as “a new industrial revolution.” Zhang noted that this irreversible trend is “significant in pushing the development of the polyurethanes industry”.
 
Key projects identified for China’s PU sector by the CPUIA include:
 
* Promoting technical innovation, and development of a 100 ktpa HPPO (hydrogen peroxide to propylene oxide) plant;
 
* Emphatic emphasis on waterborne PU production;
 
* Encouraging renewable resource use and biodegradable raw materials.
 
Zhang also pointed out that during the global economic crisis, when oil prices fell, less emphasis was placed on renewable and green products. Now oil prices are rising again and more emphasis is being placed on ecologically beneficial technology and low carbon policies, he added.
 
CPUIA representative Zhang and his colleagues were not at the Korean meeting because the Chinese government had cancelled their permits to travel as a result of the political situation between North and South Korea. This follows the sinking in March of a South Korean navy ship, allegedly by the North’s navy.
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