Enlightenment: The success of global chemical giants
From China to the world
- Chinese manufacturing
- Manufacturing performance
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China has led the tremendous changes in the global manufacturing industry in 21st century. With the decline in the market share of developed countries such as the United States, Japan and Germany, the share of emerging market countries such as China has increased. Among them, the total output of China's manufacturing industry surpassed Germany in 2005, Japan in 2008, and the United States in 2010.
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As of 2016, the actual added value of China's manufacturing industry has reached 7 times that of 2000, and its share of global output has increased from 8.5% to 30.9%. China's unit labor cost competitive advantage ranked eighth in the world in 2000 and rose to fourth in 2016.
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In terms of industries, China's chemical industry competitiveness ranked first in 2016, and it was ranked fifth in the world. For example, the Chinese companies in the complete list of the Fortune Global 500 in 2019, Sinopec, CNPC, and State Grid are among the top three Chinese companies on the list, reflecting that China's economy is still healthy under the background of weak global economic growth.
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So far, the achievements of Chinese chemical companies have been impressive. Looking at the world, what is the strength of the long-standing chemical giants?
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AIR LIQUIDE
ptt Asahi
Total
AkzoNobel
BASF
BAYER
BOC
BP
DIS
Dow
DUPONT
ExxonMobil
GE
HUNTSMAN
ICI
MITSUBISHI MOTORS
Mitsui Chemicals
PPG
SABIC
Shell
SUMITOMO CHEMICAL Co， Ltd.
- AIR LIQUIDE
- ptt Asahi
- Total
- AkzoNobel
- BAYER
- BOC
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AIR LIQUIDE
Air Liquide was established in 1902 and is headquartered in Paris, France. It is one of the world's largest suppliers of industrial, health and environmentally friendly gases. Air Liquide is the world leader in industrial gases.MORE
In China, Air Liquide is one of the largest industrial gas companies. It produces, sells, and delivers industrial gases, high-purity gases, medical gases, related equipment and services, and is committed to the electronics, chemical, metallurgical, glass, and automotive industries and medical insurance. -
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ptt Asahi
Japan's Asahi Kasei Corporation has more than 24,000 employees and more than 100 subsidiaries. The business scope covers medicine and medical, fiber, chemicals, consumer products, housing, construction and electronics.MORE
The main operating body of the group consists of 7 core companies, each of which is an independent business unit, specializing in different business areas. In the years after the Second World War, Asahi Kasei began to expand into a wider range of new fields, and developed into the forefront of the Japanese chemical industry. -
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Total
Total is one of the four largest petrochemical companies in the world. It is headquartered in Paris, France, and operates lubricants business in more than 110 countries around the world.MORE
Atofina, a subsidiary of Total, is one of the world's largest chemical companies. The company's three core businesses include basic chemicals and polymers, intermediates and specialty polymers, and specialty chemicals. -
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AkzoNobel
Akzo Nobel N.V is a multinational chemical and pharmaceutical group, formed in 1994 by the merger of Akzo of the Netherlands and Nobel of Sweden. The company has three departments: pharmaceuticals, coatings and chemistry, with a total of 86,000 employees and branches in more than 60 countries and regions in the world. Mainly engaged in salt, alkali, plastics, additives, industrial and textile fibers, various films, medical equipment, pharmaceuticals and raw materials for pharmaceutical production.MORE -
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BAYER
The Bayer Group of Germany is a leading international company in the chemical and pharmaceutical industries. Bayer is one of the world's most well-known Fortune 500 companies. The company's headquarter is located in Leverkusen, Germany. Bayer's polymer, medicine and health care, chemical industry and agriculture are the company's four pillar industries. The company has more than 10,000 product categories and is the largest industrial group in Germany.MORE -
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BOC
The BOC Group is a British industrial gas company and is now a subsidiary of Linde Group. The Linde Group is the world's leading gas and engineering group, the world's leading supplier of industrial gases, process and specialty gases, and one of the most profitable engineering companies.MORE
BOC Group's business activities include: process gas solutions business line through pipeline, on-site production or low-temperature oil tank supply a large number of products. The Industrial and Specialty Products business provides packaged gases, chemicals, and related products and services.
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BP
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DIS
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DUPONT
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GE
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HUNTSMAN
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ICI
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MITSUBISHI MOTORS
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Mitsui Chemicals
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PPG
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Shell
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SUMITOMO CHEMICAL Co， Ltd.
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BASF
BASF is the world's leading chemical company, a German chemical company, and the world's largest chemical company.
The BASF Group has more than 160 wholly-owned subsidiaries or joint ventures in 41 countries in Europe, Asia, and North and South America.
The BASF Group has more than 160 wholly-owned subsidiaries or joint ventures in 41 countries in Europe, Asia, and North and South America.
BASF is the world's leading chemical company, providing customers with a series of high-performance products, including chemicals, plastics, specialty products, agricultural products, fine chemicals, crude oil and natural gas. Its unique combination is the company's advantage. It enables BASF to achieve a low-cost advantage, thereby ensuring a great competitive advantage.
Sales in the fourth quarter of 2020 increased by 8% to 15.905 billion euros, which was mainly due to the increase in sales and prices. For the full year of 2020, sales fell by 167 million euros to 59.149 billion euros. The pre-interest and tax income excluding special items is expected to be 1.113 billion euros, an increase of 32% compared to the same period in 2019.
Dow
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The Dow Chemical Company of the United States is a leading global company. Dow has been listed on the Dow Jones Sustainability Index nine times and enjoys a high reputation in the world. It is known for its science and technology and provides innovative chemistry for major consumer markets. Products, plastics, agrochemical products and services.
The markets served by Dow Chemical Company, including food, transportation, health and medicine, personal and household care, construction and engineering, are all very important to the development of human life. China has become Dow’s second largest market.
Earnings per share for the fourth quarter of 2020 were US$1.65; operating earnings per share were US$0.81. Net sales were 10.7 billion U.S. dollars, an increase of 5% over the same period last year. In 2020, free cash flow is 5 billion US dollars, an increase of 1.2 billion US dollars over 2019. The cash flow conversion rate for the fourth quarter of 2020 was 93% and for the full year was 112%, a year-on-year increase of 30%. -
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ExxonMobil
Exxon Mobil Corporation is the world's largest non-governmental oil and gas producer, headquartered in Irvine, Texas, USA. It has production facilities and sales of products around the world, and is engaged in oil and gas exploration business on six continents; it has a leading position in the industry in many aspects of energy and petrochemical fields.
The predecessors of Exxon Mobil Corporation were Exxon and Mobil, and they were merged and reorganized on November 30, 1999. The company is also the parent company of Exxon, Mobil and Esso's global subsidiaries. In addition, ExxonMobil, Shell, BP (British Petroleum) and Total are the world's four largest crude oil companies.
Exxon Corporation and Mobil Corporation announced the merger of Exxon Mobil Corporation on December 1, 1998. The new company has its own proprietary technologies in the following areas: deepwater and Arctic operations, heavy oil processing, synthetic liquid fuels, liquid natural gas, high-strength steel, refining and chemical catalysts
The fourth quarter of 2020 has a net loss of US$20.07 billion and a full-year net loss of US$22.44 billion. This is the first time the company has recorded a full-year loss in at least 40 years. In the fourth quarter of 2020, total revenue was US$46.54 billion, a year-on-year decrease of 30.7%; the net loss attributable to the company was US$20.07 billion, and the loss was largely attributable to asset impairment. The financial report shows that the company's total revenue in 2020 is 181.502 billion U.S. dollars, a year-on-year decrease of 31.5%
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SABIC
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Business Layout
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SABIC was established in 1976 to realize the value of Saudi Arabia's natural hydrocarbon resources. Sabic ranks among the world's leading petrochemical companies in terms of sales volume and product diversity. The company is headquartered in Riyadh, the capital of Saudi Arabia, and is one of the largest non-oil industry companies in the Middle East.
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The company's various departments and the Shared Services Department provide support to the Strategic Business Department. Strategic business units include basic chemicals strategic business, intermediates strategic business, polyolefin strategic business, polyvinyl chloride and polyester strategic business, fertilizer strategic business and metal strategic business.
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In the fourth quarter of 2020, total sales were 32.85 billion riyals ($8.76 billion) and net income was 2.22 billion rials ($592 million), an increase of 104% from the previous quarter. The full-year profit for 2020 is 40 million riyals (10.67 million U.S. dollars). SABIC's 2020 annual revenue was 116.96 billion riyals (31.19 billion U.S. dollars) and 135.4 billion riyals (36.1 billion U.S. dollars) in 2019.
- Global Chemical Giants
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Among the 25 global chemical giants, the United States has one, Japan has five, the United Kingdom has four, Germany has three, the Netherlands has two, France has two, Saudi Arabia has one, and Switzerland has one. Among them, Germany accounted for three, but the top rankings are the famous BASF and the world-renowned Bayer. Although few but extremely sophisticated
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The Advancement of German Chemical Industry
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Perfect laws and regulations
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Fully market-oriented
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Good corporate culture system
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Invest in the future of employees
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Craftsmanship
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High status of small and medium chemical companies
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- 3rd
- 4th
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- 6th
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Perfect laws and regulations
Complete laws and regulations guarantee the safety and environmental protection issues of the chemical industry; for example, the pursuit of maximum industry benefit and enterprise profit maximization of the trade association and the realization of production safety performance can be closely linked through economic levers. For small and medium-sized enterprises, it can effectively prevent enterprises from going bankrupt due to accident compensation, and ensure the implementation of the main responsibility for safe production in high-risk industries. -
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Fully market-oriented
German chemical industry is completely market-oriented, and definitely not blindly developing. German chemical parks often develop a new chemical model on the basis of old chemical bases. They are developed by Germany based on the principles of "industrial agglomeration, intensive land use, reasonable layout, convenient logistics, safety and environmental protection, and integrated management". Freshman mode. -
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Good corporate culture system
Germany has a good corporate culture system. A unique culture of caring for employees. -
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Invest in the future of employees
German companies are willing to invest in the future of their employees. The so-called "investment" is not only to give generous salaries, but also include opportunities for employees to learn and improve. This is the secret for many German companies to retain people. -
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Craftsmanship
German craftsman spirit, keep improving. -
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High status of small and medium chemical companies
Small and medium chemical companies have a high status in Germany. In addition to the country's emphasis on the manufacturing education system, German SMEs not only have a strong entrepreneurial spirit, but more importantly, they are more pragmatic, pay more attention to long-term development, and focus on the cultivation of internal skills.
