The assessment of various chemical companies of China has revealed certain unique features (scales of operations, quality, technological innovation etc) which have helped these firms strengthen their foothold in the industry.
Key Chinese firms have succeeded in achieving vast scales of operations, enabling them access to both domestic and foreign markets. Majority of these companies also have succeeded in ensuring product quality. Sinochem, for instance, is China’s fourth largest chemical and petrochemical company and is engaged in sectors like energy, agriculture, chemicals, real estate and financial services. It is one of the largest fertilizer suppliers and distributors, equipped with formidable chemical logistics infrastructure. Sinochem is one of the leading pesticide producers with two national pesticide R&D centers and three production units.
Hubei Yihua Group is a major polyol producer and has a domestic market share of 80 per cent. This firm also produces fertilizer, chlor-alkali and mineral salts. It has over 20 subsidiaries and 60 per cent of its markets are located in Africa, Southeast Asia and South America. The firm also has five joint ventures and 26 R&D centers. They focus on phosphorus chemical industry, salt chemical industry, coal chemical industry, mine development and natural gas chemical industry.
A distinguishing feature of the Chinese chemical companies is that the major players are prepared to bring about upgrades and reforms. Many chemical companies are improving their safety and management systems and including new materials and green products in their product portfolios.
Another vital characteristic of Chinese companies is their willingness to promote technological innovation, spend on research and improve their production processes. Chemical companies have started investing huge amounts of money and resources into producing new chemical materials required for information technology, energy, automotive, green construction etc. Increasing number of companies are aiming for technological innovations as well as self-sufficiency and sustainability. The Wanhua Chemical Group intends to revitalize the national polyurethane industry through improved technology.
Risun along with its subsidiary Xu Yang Holdings is a major coal chemical product manufacturer and has been trying to strengthen its position in a new sector using technology from Germany and international research institutes.
Nanjing Red Sun Group has succeeded in developing eco-friendly, low toxicity pesticides through its own efforts. These companies have also benefitted from the infrastructure support provided by the Chinese government.
China’s approach to R&D has changed drastically in the past few years and spending on research is expected to increase exponentially in the future. China has already become a global leader in areas like chemistry, engineering and materials science.
A vast majority of the chemical firms have shifted their focus from product management to branding. These firms are engaged in active promotion of their brands in the world market. Shandong Linglong Group has formulated a strategy of improving quality and obtaining patents to market tyres in the international market. Its strategy of setting up a capacity of 3.5 million tyres per year and manufacturing high-value brands has helped the company become a global name.
Apart from producing high quality products, Chinese firms are also focusing on improving the quality of their services. Hubei New Yang Feng has developed a national sales team and new marketing concepts as well as a competitive management model. The company employs over 400 expert sales staff, 2000 first level agents and 30,000 second level retailers throughout China. They have broadened the range of their services to include soil survey testing, dissemination of fertilization knowledge and agricultural management.
Wengfu Group has focused on making its brand appear environment friendly. The enterprise works on integrating phosphorite mining with other fertilizers. Wengfu makes use of several hazardous materials and thus focuses on waste utilization and efficient use of resources to improve its global image.
Thus, Chinese companies no longer focus only on scales of operations but are engaged in producing eco-friendly, quality products and establishing a sustainable economy.
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