Multinational chemical enterprises in China: Expect to grow against the trend with continuous improvement of investment environment
Release Date: 2020-10-12   |   Concen: 287

In the past, with the support of a series of policies aimed at stabilizing foreign investment, multinational enterprises in China have speeded up the resumption of work and production and made steady progress in the construction of major projects. On April 22, ExxonMobil officially started work on its $10 billion huizhou Ethylene project, the first major petrochemical project to be built in China by a U.S. company. At the same time, other multinational companies are also actively promoting projects in China. So, how do multinational companies view the Chinese market in 2020 and their development plans for the Chinese market this year? Through interviews with dozens of multinational companies headquartered in North America, Europe, Asia, the Middle East and other regions, the reporter of China National Chemical News learned that in the special period of China's chemical market, multinational companies are not less enthusiastic, continue to expand the Chinese market, the desire to serve Chinese customers is still.

"Our confidence in Investing in China remains firm"

"The commencement of the project marks an important milestone in The progress of ExxonMobil's significant investment in China," said Mr. Wan Lifan, chairman of ExxonMobil (China) Investment Co., LTD., at the huizhou Ethylene project commencement ceremony. The project investment scale is large, the added value is high, has the strategic significance to the company, is mutually beneficial to both sides. Exxonmobil wants to be actively involved in Manufacturing in China, using advanced technology to produce sustainable, high-performance products to meet the growing needs of our Chinese customers."

Exxonmobil huizhou Ethylene project will be built in two phases, the first phase is expected to be completed in 2023, mainly including 1.6 million tons/year ethylene cracking unit and middle and downstream metallocene polyethylene, high-end polypropylene and other bulk products. When the first phase is completed and put into operation, the second phase will also be started. Among them, the first phase of the project after construction, the estimated annual revenue of 39 billion yuan.

DSM believes that an open and fair global business environment is essential to the development of the global economy. In recent years, China has taken a series of measures to further open up and improve the business environment, which have played a huge role in stabilizing the market and strengthening investment confidence. Jiang Weiming, President of DSM China, said: "The current level of development of Chinese society and its stable supply chain make it a strong attraction for large foreign companies. In the medium to long term, the expected consumer market and the business environment for transformation and upgrading are still the top choices for foreign investment. As a mission oriented, focus on nutrition, health and green life science companies, DSM group for the Chinese market is always full of confidence, and will continue with expertise in the field of nutrition and material, innovation of science and technology to provide products and services required by the market, for China's customers, employees, and all stakeholders to create value."

Basf said that China is now the third largest market in the world for BASF after Germany and the United States. It is a major growth market for BASF's business development and also an important market for BASF to achieve long-term profit growth. Basf maintains confidence in China's long-term economic development. Basf will continue to take root in China and work more closely with customers and partners to continue to invest, produce and innovate, implement new corporate strategies, provide customers with new experiences and achieve common growth.

"2020 is Corning's 40th year in China," said Corning China. For 40 years, we have witnessed the development of China's modern industrial system with perfect and continuous investment and business environment optimization, see the Chinese government and people in the presence of significant events in all-round and stable social economic development of determination and execution, also see spontaneous efficiently integrate resources between enterprises, in order to promote the production and business operation. Such synergies will unleash powerful forces in the Chinese economy. We have full confidence in the resilience and potential of the Chinese economy. Corning's major investments this year have been in China. "We will continue to implement the right strategy at the right time to maintain our global dominance and contribute to China's economic development."

Huntsman said that the outbreak of the epidemic is bound to have an impact on its short-term operations, but huntsman's confidence to continue to deepen investment in China has not changed. Following the official location of Huntsman Asia Pacific headquarters in Shanghai in 2019, and the completion and operation of huntsman's factory in Tianjin in 2020, a series of major events demonstrate Huntsman's determination and confidence to continue to look forward to the Chinese market and take root in its development.

"We are optimistic about new Opportunities in The Chinese market"

"The accelerated deployment of 'new infrastructure' by the Chinese government will bring new drivers for China's economic development and new opportunities for the specialty chemicals market. In the field of 5G base station construction, electric vehicles, industrial Internet and other fields, Evonik's innovative products and technologies such as silane and high-performance materials have broad application prospects. "Specialty chemicals still have a strong presence in the Chinese market." "In the short term, coVID-19 has had a serious negative impact on China and the global economy, and it has also made the future of the global economy uncertain," said Xia Fulang, President of Greater China for Evonik. Thanks to timely and effective epidemic prevention measures and a widely distributed product portfolio, Evonik group has made a solid start to the first quarter of 2020 and maintained a good momentum in the China market."

"Evonik has always viewed China as one of the key drivers of the global economy and has worked hard to achieve continued growth in China," he said. At present, Evonik has invested up to 700 million euros in its production base in Shanghai and nearly 50 million euros in its research and development center. In 2021, The first gas phase silicon dioxide plant located in China will be completed and put into operation in Zhenjiang, Jiangsu province as planned. All these demonstrate Our determination and confidence to develop in China."

"This outbreak is both a challenge and an opportunity for manufacturing," wack said. As Mark Limbaugh, President of Wacker China, said in a letter to all employees on February 10, the first day of work, "Before the outbreak, the central government has made it clear that continued stability and economic development is the government's priority. I believe this will remain the government's priority after this public health issue is resolved." In the face of both opportunities and challenges, Wacker will continue to enhance its local R&D capabilities. In the future, Wacker will use the Shanghai RESEARCH and Development Center to further develop products and applications that meet the needs of the local market and continue to grow in China as Chinese people's living standards continue to improve and their industries upgrade."

In addition to chemical companies, many foreign-related suppliers have also expressed their enthusiasm for the Chinese market. On April 29, Schneider Electric signed an agreement with xiamen Torch High-tech Industrial Development Zone Management Committee and Xiamen Huli District, planning to invest in local research and development, build advanced production lines and produce a new generation of digital green electrical products. Xu Shaofeng, senior vice President of Schneider Electric and head of energy efficiency management medium voltage business in China, said that the successful signing of the new project is closely related to schneider Electric's long-term optimistic outlook on the Chinese market and the development prospect of China's digital economy. Schneider Electric has been working in China for 33 years and China has become the second largest market in the world.

At present, China's digital economy has made great progress. The acceleration of "new infrastructure" and the impact of the epidemic are expected to accelerate the digital transformation trend of China's industries. Schneider Electric said that it will continue to leverage its digital expertise to help Chinese industries achieve efficient and sustainable development and promote high-quality development of the Chinese economy.

"We always work side by side with ChemChina customers"

Honeywell material characteristics and technology group, vice President and general manager of Asia Pacific region, honeywell UOP Liu Maoshu, vice President and general manager, said: "honeywell has been focus in close cooperation with Chinese enterprises focus on innovation interconnection solutions for Chinese customers, helping Chinese enterprise transformation, to help China achieve long-term sustainable development and promote the development of intelligent manufacturing. China is one of the most important markets in Honeywell's global expansion strategy. In 2013, China became the largest market outside the United States and the largest contributor to honeywell's global growth. This year is a special one. The world economy is facing challenges due to coVID-19 and the international situation. However, we have always believed in the strength of China's petrochemical industry and the resilience of China's economy. No matter what the challenges are, we will continue to leverage our industry strengths and work with all sectors of society to overcome the difficulties and create a better future for China."

Su Junxiong, President of air Products China, said: "We have full confidence in China's efforts to fight the epidemic and stabilize the economy. The Chinese market is of strategic importance to the air products company, which has been serving the local market for 33 years. We will focus on energy, the environment and emerging industries, and continue to increase the speed, intensity, breadth and depth of investment in basic and new business areas, including commercial gases, large air separation, coal gasification, hydrogen energy and sustainable gas application solutions. "

Heraeus precious metals chemical industry as one of the key customer segments, general manager of the China humic said: "the new champions league outbreaks in early caused a certain influence to our business, but as for full resume work on February 10, the company, since our production capacity gradually restored, and chemical industry customers for heraeus compounds containing precious metals, pigments, and precious metals recycling high demand, especially some of our products can be applied to epidemic prevention materials production, combined with domestic epidemic situation continues to improve, macro economy has been warmer, in these advantages, we recently have achieved satisfactory results. In the long run, our products and solutions are in line with the national 'circular economy' and green development orientation, and China itself is one of our most important markets in the world. To this, we have the very firm confidence to continue to help Upgrade China's precious metal industry and develop together with our customers to create brilliant future."

"We believe that tomorrow is beautiful"

Under the impact of the COVID-19 epidemic, some countries declared to "withdraw enterprises from China" and "withdraw foreign investment from China". However, the reporter of China Chemical Industry News got different answers from foreign enterprises through interviews.

"We have no divestment plan," said Anting Wang, President of Clariant China. Clariant has long been committed to developing the Chinese market, and this will not change with the coVID-19 outbreak. In order to be a true 'China market insider', Clariant has a clear 'from the edge to the core' strategic plan and has made China the core of its global strategy since 2016. Over the past few years, we have been gradually expanding our footprint in China, including new plants, joint ventures, mergers and acquisitions, and the Clariant Integrated Park in Shanghai, our regional operations headquarters and regional R&D center, which is scheduled to open in 2020." He added: "Our financial position is strong and our first quarter 2020 results show clariant's profitability remains resilient and EBITDA margins are solid. We also have a strong balance sheet and a liquid position. At this stage on a global scale, no one knows how long the special situation caused by coVID-19 will last, but in China, thanks to decisive and effective measures taken by Chinese governments at all levels, the whole country is being restarted. In fact, from mid-February 2020, Clariant China is also gradually getting back on track with almost full factory capacity restored."

"The COVID-19 outbreak is adding to global uncertainty and has had a serious impact on the global economy," said Lei Huan-li, President of Kxtrong China. In this environment, Kxtron and the chemical industry are not immune to this challenge. Nevertheless, Kxtron is confident that it can successfully meet this challenge through customer focus, strict cost awareness and strong team spirit. China has become one of our most important markets and we regard it as our home market. In 2019, Kostron's sales in China were 2.5 billion euros, accounting for about 20% of group sales. By the end of 2019, Kostron's total investment in China has exceeded 3.6 billion euros. Kostron's investment in China is long-term and we are also seeing long-term and new demand for high-tech plastics brought about by China's industrial upgrading and sustainable development. Therefore, Kostron's confidence and commitment to the Chinese market will not change."

Solway has been developing in China for decades and has always been bullish on the Chinese market. There will be no divestment plan,? It said. Over the past 40 years in China, Solway has been adhering to the concept of 'in China, for China' and providing high value-added products and solutions for the Chinese market and customers.

In November 2019, Her Royal Highness Princess Astride of Belgium participated in laying the foundation stone for the expansion of the Solvay Shanghai Research and Innovation Centre. The expansion of the China Research and Development Centre will further expand Solvay's research in high-performance materials applications, as well as research on specialty chemicals in industrial and consumer applications. In addition, solvey announced in 2019 that it would increase the capacity of PVDF at its Changshu plant to meet the growing demand for PVDF in various markets, including the lithium battery market. Solway points out that these investments are concrete manifestations of solway's long-term commitment to China.

"China is dow's second-largest market and an important part of its global strategy," said Xu Yang, Dow's general manager of public and government affairs for Greater China. We have full confidence in the future of the Chinese market. We have a record of investing in a new project in Jiangsu province in 18 months. Not long ago, we signed a memorandum of cooperation with the local government to invest us $300 million in the next five years. These measures demonstrate our commitment and confidence in China. China's expanding consumer market and consumption upgrade are also the driving force for attracting foreign investment to take root in China, expand its presence and serve China for a long time."

"China, a country of 1.4bn people, is going to be one of the most important consumer markets, regardless of how the world's macro environment changes," said Michael Qian, President of Lanxsons Asia Pacific. Lanxess is committed to expanding its presence in China. All our production bases in the Greater China region resumed production on February 10, and our Asia Pacific headquarters is now fully operational. At present, all the plans are being carried forward in an orderly manner under the team's hard work. 2020 is a key year for Lanxess, and we will continue to execute on our strategy in the region despite the uncertainty caused by coVID-19."

"The impact is only in the short term," said Wu Xianliang, Senior vice-president and managing director for Asia Pacific at Allstar. We should not let the epidemic affect our long-term development plans. Of course, we will make some adjustments to meet the short-term needs of some customers, but our long-term strategy will not change. Our investment plans in Asia, in China, will not change because of the epidemic."

There is no winter that will not pass, no spring that will not come. This year, the world is looking forward to spring flowers more than ever. The charm of China's chemical market comes from its inner strength. The enthusiasm of foreign chemical enterprises in China has also encouraged the Chinese chemical market to form a positive two-way interaction. Zhang Jinjie, a researcher at the International Investment Research Office of the Institute of World Economy and Politics, Chinese Academy of Social Sciences, believes that the international division of labor system established through economic globalization has its historical inevitability and rationality. China has unique advantages in the global industrial chain and supply chain, with the world's most complete industrial system and increasing technological innovation capacity. Investing in China is a rational choice for most multinational companies.

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