Our soda ash is not going to be big anymore, because there is no room for further development downstream of soda ash. The company will convert propylene, polyolefin, and then go to the Martin octanol project to form a complete industrial chain. At present, the 200,000 tons/year octanol project has been declared. Fang Fei, manager of nitrogen fertilizer marketing at Jiangsu Huachang Chemical Co., Ltd., said in an interview this week. It was learned from the China Soda Industry Association that since November last year, the domestic soda industry has experienced worse and worse business conditions, and the company has no profit, and it has already suffered losses in the entire industry. Soda ash companies report that at present, the market price per ton of soda ash is 1,000 yuan lower than that in September last year. Not only did the ammonia-alkali company suffer a total loss, but also the company's subsidiaries did not survive. However, due to the large demand for ammonium chloride from spring plowing, the losses were slightly lower. The main cause of the loss of the enterprise is that the downstream demand is insufficient and the output is greater than the sales. Therefore, limiting production is the most important way out. Wang Xiling, president of China Soda Industry Association, emphasized. It is understood that the downturn in the real estate market has caused the current soda ash downstream more than 200 flat glass production lines (above-scale enterprises) have already stopped 52 maintenance inspections, 61 in the load-reducing production. The consumption of soda ash for the production of flat glass accounted for 35% of the total soda ash production in the country. As a result, the production of flat glass production lines was suspended and production was cut down and the sales of soda ash were greatly affected. In addition, the US economic downturn and the European debt crisis have had a significant impact on the export of domestic products. The export of sodium nitrate, sodium nitrite and other products using light soda as raw materials has reduced the demand for soda ash. On the one hand, there is insufficient downstream demand, and on the other hand, the soda ash production capacity has an annual increase of 23 million tons every year for four to five years. According to the latest statistics from the China Soda Industry Association, the domestic soda ash production capacity reached 28 million tons and the output reached 22.36 million tons last year, an increase of 3.7 million tons and 1.89 million tons respectively over the previous year. In addition, this year, the country imposes high tariffs on peak seasons for the export of ammonium chloride and binary compound fertilizers, which will also have a certain impact on the sales of ammonium chloride. The only and most effective way to reduce losses in the industry is to limit production. Only by keeping output under control, can the product prices go upwards. Otherwise, the more profitable the production, the more it will be. Wang Xiling claimed. According to Wang Xiling, Shandong Haihua Group, Lianyungang Soda Plant, Qingdao Alkali Industry Co., Ltd., Dahua Group, Henan Jinshan Chemical Co., Ltd., Inner Mongolia Boyuan Holding Group Co., Ltd., Hubei Yihua Group, Tangshan Sanyou Chemical Co., Ltd. and other large domestic soda ash company responsible person expressed support, and plans to limit production from April to 20%. It is understood that at present, more than a dozen large soda ash companies have initially reached an agreement to limit production by 20% according to production capacity, and production will be reduced by approximately 10%, and efforts will be made to control actual production at about 22.36 million tons in 2011. The output of these ten large companies accounts for half of the total output of the country. As long as they agree to limit production, they can certainly reduce total domestic production. On this basis, we will also hold a general meeting this year. If all of us pass this proposal, we will support soda ash companies whose output accounts for 70% to 80% of total domestic output. Wang Xiling claimed. In addition to limiting production, many companies are also actively carrying out product structural adjustments, implementing conversions, and launching high value-added products such as octanol to get rid of a single profit model. It is understood that after the relocation of the Tianjin Soda Plant, a new butyl octyl alcohol plant has been built and production has been carried out in the first half of last year. The current benefits are very good. Tiancai relocation is a comprehensive upgrade of technology, and the level of environmental protection has been greatly improved. The new plant has introduced production facilities and process routes with advanced world standards. We expand from a single production of inorganic products to dioxins, polyoxymethylene, acetic acid, and other multiple products, from high-cost, low-productivity products to proprietary, high-value-added products. Tianjin Soda Plant Propaganda Minister Wang Junjie said. Qingdao Alkali Industry Co., Ltd. is also planning to launch the 225,000 tons/year butyl octanol project in Huangdao. On February 15, the company issued an announcement saying that the proposed non-public offering of stocks will not raise more than 1.5 billion yuan for the butyl octanol project. The project is planned to be completed and put into operation within 36 months. After the project is put into production, it can achieve an annual average operating income of 2.797 billion yuan and an after-tax profit of 383 million yuan. It will effectively promote the optimization and upgrading of the company's industrial structure and build a diversified industrial structure. Fang Fei, manager of Nitrogen Fertilizer Marketing of Jiangsu Huachang Chemical Industry Co., Ltd., told reporters that they had signed a cooperation agreement with Donghua Energy Co., Ltd. and Jiangsu Feixiang Chemical Co., Ltd. last year to jointly invest about 4 billion yuan to build 1.2 million tons/year of propane. Dehydrogenation to propylene project, and 200,000 tons/year butyl octanol project.
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Limiting production and converting to become an important way for large-scale soda ash companies to reduce losses