BMI's Executive Summary

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Market Overview

Robust domestic demand coupled with cost advantages over industrialised Western nations has made China a key consumer as well as supplier of chemical products. It is currently the world's third-largest consumer of chemicals. The country is greatly reliant on chemicals imports however, as demand is expected to climb further. China's chemical industry remains lucrative, especially after the country's entry to the World Trade Organisation (WTO) in 2001. Multinationals and domestic companies are establishing extensive production capacities, driven by investments through co-operative ventures. The chemical industry remains fragmented, with domestic companies accounting for 40% of the market.

Development Of Chemical Industrial Parks

China Petroleum and Chemical Industry Association (CPCIA) has issued guidelines to facilitate development of the country's chemical industrial parks. These parks are expected to contribute towards improving the industry's investment climate by introducing foreign investment, upgrading technology and developing regional economies as well as facilitating management systems and operations. The move is also expected to streamline China's existing chemicals industry by centralising production. China's policies on development of chemical parks also aim to increase the percentage of speciality and finished materials produced within the country.

Industry Developments

In October 2006, China National Offshore Oil Corp (CNOOC), the nation's third-biggest oil company, was authorised by the central government to take over China National Chemical Construction Corp (CNCCC) in a bid to boost its market share in the downstream business. State-owned CNOOC acquired CNCCC "at no cost" to expand its presence in fertilizer production, research and international trade. In March 2007, PetroChina Company Limited (PetroChina) announced that it plans to sell 70% equity in PetroChina International Co., Ltd. to China National Petroleum Corporation (CNPC), for an initial consideration of RMB117mn. In November 2007, China National Chemical Corp (ChemChina), The Blackstone Group and Fox Paine Management agreed to purchase Australia's Nufarm Limited, for a consideration of US$2.75bn in cash. Nufarm Ltd., which has headquarters at Laverton in Melbourne, Australia, is one of the world's leading crop protection companies, producing mainly herbicides and pesticides.

Industry Forecast

The Chinese chemical industry is forecast to grow to US$205.2bn in 2008, from US$195.8bn in 2007 and US$186.5bn in 2006. By 2008, the number of chemical units in the country is likely to be 13,549 from 13,282 in 2004. Existing multinationals are likely to expand capacities to meet the increasing demand and fresh investment is expected to come in as more multinationals establish operations in China.

Contents

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Chapter 1 - Executive Summary

Market Overview

Development Of Chemical Industrial Parks

Industry Developments

Industry Forecast

China Chemicals Industry SWOT

China Business Environment SWOT

Chapter 2 - Market Overview

Table: China's Output of Main Chemical Products in May 2006

Table: China's Output of Main Chemical Products (January-May 2006)

Base Chemicals

Speciality Chemicals

Development Of Chemical Industrial Parks

Chapter 3 - Market Structure

Business Environment

Acquisitions And Finance

Projects And Expansions

Policy Environment

Chapter 4 - Industry Forecast Scenario

Table: China Chemicals Market Value: Historical Development And Forecasts

Chapter 5 - Macroeconomic Forecast

Table: China Macroeconomic Data And Forecast

Chapter 6 - Company Profiles

Sinochem Corporation

China National Chemicals Corporation (CNNC)

Bayer (China) Ltd

Dow Chemical

BASF AG

Chapter 7 - BMI Forecast Modelling

How we generate our industry forecasts

Chemicals & Petrochemicals Industry

Cross checks

Competitive Landscape for Asia Chemicals: Sample of  
Companies Ranked

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Rankings and Competitive Landscapes by production and sales; market share and change on previous year; number of employees, ownership structure and year established. Also includes analysis of company expansion, export and investment strategies.