$100 billion! Major chemical giants to seize the Chinese market

More and more European chemical companies are struggling to predict their energy consumption and budget, the Wall Street Journal reported. Energy supplies, geopolitical conflicts and the current state of the European economy are also affecting the investment plans of multinational chemical companies, and many chemical giants are increasing investment in projects in China.

BASF announced that its first factory in Zhanjiang, southern China, began operation in mid-early September, marking its largest overseas investment to date, totaling 10 billion euros (69.3 billion yuan).

Covestro has invested tens of millions of euros to build two new plants in the Shanghai integrated base, producing water-based polyurethane dispersions (PUD) and elastomers. The new PUD plant and its accompanying polyester resin production line will be completed in 2024, and the new elastomer plant is expected to be operational in 2023.

At the construction site of Libang New Materials East China Regional production base project in Jurong Lingang Industrial Zone, Zhenjiang, the steel structure plant of 16,000 square meters is being lifted. It is expected that the steel structure of the plant will be capping in October, and it is expected to be completed and put into operation in the middle of next year.

Evonik announced the upgrade of its research and development site in Xinzhuang Industrial Park, Shanghai, and the official name is "Evonik Shanghai Innovation Park". After the upgrade, the Shanghai Innovation Park will integrate basic research, product development, process development, experimental plants, applied technology, testing and analysis services and venture capital activities.

Inex has signed a series of agreements with Sinopec, the Chinese oil and gas company, representing assets with a total capacity of 7 million tonnes per year, worth nearly $7 billion, including the establishment of a 50:50 joint venture to produce acrylonitrile butadiene styrene using its unique ABS technology.

Akzonobel announced the construction of its decorative paint East China logistics base in Songjiang, Shanghai, which will be officially put into use in June 2023. The logistics base with an investment of about 75 million yuan, located in Shanghai Songjiang decorative paint factory, is expected to become AkZONOBEL's largest logistics base in China after completion.

The phase III project of PPG Coatings (Zhangjiagang) Co., LTD., a wholly owned subsidiary of PPG in China, is scheduled to be completed and put into operation in June this year. The total investment of the project is 75 million US dollars (about 533 million yuan), covering an area of 174 mu, the project will form an annual production capacity of 145,000 tons of high-performance coatings and 5,000 tons of PVC sealant.

In July, Rohm Group announced an agreement with its Shanghai PLEXIGLAS? Bao gram force? The expansion of the molding plastics factory is in progress, and the expanded factory is expected to be completed and put into operation in the second quarter of 2023.

LGChem, the South Korean power battery company, said it had bought 40 billion won worth of shares in Jiujiang Techonology, China's third-largest copper foil maker, to secure a stable supply of core battery materials.

SKchemicals, a South Korean chemical company, said it bought a 10 percent stake in Shuyee Environmental, a Chinese polyester waste recycler, for 23 billion won, or about 115 million yuan.

According to National Technology announcement, Inner Mongolia Snow New Material Technology Co., LTD., the company's holding Sun company, signed the capital Increase Agreement with South Korea's PoSCO Chemical and Zhejiang Huayu Cobalt Industry, and South Korea's POSCO Chemical subscribed to the newly registered capital of the reorganized Inner Mongolia Snow with RMB 141 million in cash, obtaining 15% of the equity of Inner Mongolia Snow after the transaction.

China Shell Huizhou Phase III ethylene project in China and the UK "cloud contract".

Total Energy China and Hainan International Economic Development Bureau signed a memorandum of understanding to promote clean energy business and technology development.

Merck's first OLED screen coating material production base in China was officially completed and put into operation in Shanghai Pudong Jinqiao.

Mitsubishi Chemical (China) Management Co., Ltd. and Suzhou High-tech Zone Management Committee signed a contract, will set up Mitsubishi Chemical sharing service center in the area, intensive management of business in China.

According to incomplete statistics, in recent years, foreign investment in new chemical materials and other fields of nearly 100 billion yuan, other chemical giants are also continuing to follow up the investment.

Whether THE HEAVY CAPITAL OF FOREIGN CAPITAL enterprise invests to MARKET OF OUR country CHEMICAL industry WILL BRING pull, the answer IS beyond doubt. Our country chemical industry is mainly concentrated in the basic fine chemical industry, profit is lower. The support of these foreign chemical industry leaders will introduce international high-end technology and management experience, which will help to promote the development of domestic related industries, stimulate market vitality, promote the simultaneous improvement of the domestic chemical market, and even subvert the current pattern of chemical industry. But the downside is also obvious, for the localization of enterprises, is a huge shock.