Five years later, China will only have a huge chemical companies?

Over the past ten years, serious homogenization, the excess capacity of product standardization and automation of the production process and has a bloodbath located upstream of the chemical production enterprises. Today if someone told me the cyclohexanone production and production of styrene, butadiene production and production of phenol and acetone are small business it is very ridiculous, can be said that in the upstream areas of your basic chemical raw materials basically do not see sales in 100 million following a small factory, now the trend is to spread downstream chemicals, why is this so? Should be the following reasons to accelerate this progress:

Five years later, China will only have a huge chemical companies?

The cost of capital has been completely out of class

If you are a business value below 1 hundred million, I don't think you can use the normal interest from the bank loan, but if you are a listed company, the central enterprises or state-owned enterprises, you from bank loans and even enjoy preferential interest rates is not too difficult, the difference of capital cost directly the price determines the competitiveness of products.

It is difficult for small businesses to support and help upstream suppliers

I know quite a number of enterprises, small businesses also know when the procurement of raw materials is basically a lot of prepaid or cash to buy, you require suppliers especially large suppliers to your account is not going to happen, even if you are a cash payment when money is tight is often not get the goods, and the purchase price is higher than you those who take account of the Datong line, the cost difference on more than one point.

Small businesses basically do not have the ability to research and development and innovation

Small and medium sized enterprises of our country basically by imitating, see a production by big business hot products began to copy, because your brand not, product stability produced plus have certain difference, you have to take a lower price in the market for sales, and your marketing cost is also high you respect the competitors.

Environmental protection: a tool to kill small and medium-sized chemical enterprises

Last year, more and more stringent environmental protection inspector for the local government at all levels to talk about chemical discoloration, Chinese chemical industry serious excess is an indisputable fact, and many backward production capacity is arch-criminal chemical pollution of the environment, especially with advanced production equipment manufacturing enterprises, I personally think that the next ten years China almost all of the chemical production enterprises have to enter the government set the chemical industrial park, unless you are central enterprises or large foreign companies, they have become a park, if all chemical enterprises of all sizes in the park, it should not be possible, but also reach the purpose of our capacity to. The so-called "capacity", should be to backward production capacity, to have the pollution to the environment capacity. Large central enterprises or large foreign companies due to regulatory norms, high output value, pay more taxes, governments at all levels will not only bite them, but also to encourage them to do bigger and stronger. Small and medium enterprises must become the current government at all levels of the target, was turned off will become a probability event.

Conclusion: the interaction of the above four factors, does not have the core competitiveness and sustainable development ability of small and medium sized chemical enterprises to be doomed, the total number of chemical enterprises China within five years will be greatly reduced, just ask, with the industry concentration rapidly soared, these giant enterprises become "broad set" will use its position in the market and the ability to control access to them that reasonable profit. This situation has occurred in the upper reaches of basic chemical field, you see, you look at the MDI titanium dioxide, you look at the MMA, in the current environment, even if you develop a new product is very valuable, you want to own up playing childhood, it should not be possible, since we don't know Chinese chemical enterprises are dependent on the buy to live? Because I really don't know.