Japan's three-pronged approach to increase competitiveness

Integrate petrochemical business to extend industrial chain and expand outward investment

Sinochem New Netcom Although the financial crisis has passed, the Japanese petrochemical industry is currently facing challenges such as fierce competition in the international market and shrinking domestic demand. To this end, large-scale enterprises use their own capital and technological advantages, adopting the integration of traditional cracking industries, vigorously developing high-value-added petrochemical products, increasing external investment, etc., to promote industrial restructuring and improve competitiveness.

Ethylene industry stepped up integration

In the first half of the year, the performance of the ethylene industry in Japan was impressive, but with the successive launch of large-scale petrochemical projects in the Middle East, many older ethylene crackers in Japan could not compete with new large-scale ethylene plants with strong raw materials and domestic demand in the Middle East and China. Since the second half of this year, due to the lack of improvement in domestic and foreign market demand, and the continued strength of the yen, Japan’s petrochemical industry has been slow to recover, and the products are facing excess pressure. According to the senior consultant of the chemical industry of Accenture Japan Consulting Co., Ltd., it is estimated that due to lack of competitiveness, in the next 5-6 years, there will be 3-5 sets of uncompetitive cracking devices in Japan that are forced to close. The total annual ethylene production capacity will reach 1.5 million - 2 million tons.

As the market space has been severely squeezed and competition has become increasingly fierce, the integration plan for Japan's petrochemical companies that has been brewing for several years has finally begun to implement. Mitsubishi Chemical Corporation and Asahi Kasei Corporation, the two largest chemical companies in Japan, announced on April 1st, 2011 that they will begin to merge their cracking operations in Mizushima, Japan. Mitsubishi Chemical also said that as the demand for ethylene in Japan continues to decline, the cracking business of both companies will reduce their production capacity after the merger operation and will eventually concentrate on one set of equipment. The two companies currently have 500,000 tons/year of ethylene capacity in Shuidao each built in the 1960s.

On October 1st this year, Mitsui Chemicals and Idemitsu Kosan Co., Ltd., the cracking business in Chiba, Japan, merged into a joint venture company called Chiba Chemical Production Co., Ltd., which includes Mitsui Chemicals' local capacity of 553,000 tons/year ethylene and Idemitsu Kosan produced 374,000 tons/year of ethylene production capacity in the local area. The two companies stated that only through this type of cooperation can the competitiveness be enhanced and not eliminated by the market. The two parties plan to expand the business combination approach to the fields of specialty chemicals, polymers and chemical intermediates based on the success of the merger of crackers.

Analysts said that in the future, Japan may further integrate the refining and petrochemical businesses in Kashima, Osaka, and Kyushu, and gradually reduce the production of polyethylene, ethylene glycol, and styrene, and avoid similar production with ethane in the Middle East. The front of the product is confronted and the focus will be on aromatics and vinyl functional chemicals made from propylene.

Target downstream business

In view of the current market environment, Japanese petrochemical companies no longer regard the traditional petrochemical industry as the main business of profit, but give full play to the technological and market advantages of high-tech products and occupy the high-end chemical market.

Mitsui Chemicals, Mitsubishi Chemicals and Sumitomo Chemical, three major petrochemical companies in Japan, have taken the extension of the industrial chain and the development of their downstream businesses as their focus of transformation. They have enhanced the research and development and production capabilities of petrochemical companies in the fields of specialty chemicals, polymers and key intermediates, and actively developed functions. Resins, high performance films, fine chemicals, pharmaceuticals, and agrochemicals are differentiated products.

Mitsubishi Chemical said it will focus on lithium battery materials and light-emitting diodes. Sumitomo Chemical is also seeking opportunities for restructuring acquisitions in the fields of medicine and pesticides, and plans to produce organic light-emitting diode panels for large-screen TVs. Asahi Kasei Group plans to focus on the development of water treatment systems and high-end healthcare services.

As Japan's automotive and electronics industries have global leading advantages, Japanese petrochemical companies are aiming for a huge market for related materials. In the automotive field, polypropylene is the most used chemical product. Currently, Mitsui Chemicals, Mitsubishi Chemicals, and Sumitomo Chemical have provided polypropylene products to global automakers. At the same time, they have excellent heat resistance, low cost, and can reduce noise and vibration. Plastics, rubber and fiber products with properties such as alternatives to metal materials are generally preferred; in the field of new energy vehicles, lithium-ion battery materials such as electrodes and separators and related parts and components are also important for major chemical companies to seize the high ground in the future market; in the field of optoelectronics , LED materials and new circuit board materials have become the core business of Japan Petrochemical Corporation.

Increase investment in foreign markets

While adjusting the domestic industrial structure, Japanese petrochemical producers also set their sights on overseas markets, adopting joint ventures, direct investment, and mergers and acquisitions with local petrochemical companies, and making full use of local resources and markets to expand their production capacity.

The Rabig Oil Company, a joint venture between Sumitomo Chemical and Saudi Aramco, is one of the world's largest petrochemical projects. Due to its large scale, the expansion project has been postponed. The company’s 900,000-ton/year polyethylene and 700,000-ton/year polypropylene production unit is expected to start making profits in fiscal 2010. The feasibility study for the second phase of the production of phenols, nylon resins and acrylics is expected to Completed in the fourth quarter. In addition, Sumitomo's synthetic resin company, which is investing in Singapore, will build a solution of SBR and ethylene vinyl acetate copolymer units, which will be launched before the end of the year.

Mitsubishi Chemical also followed. On March 26, 2010, Mitsubishi and Sinopec China jointly established Sinopec Mitsubishi Chemical Polycarbonate (Beijing) Co., Ltd., and plans to invest 2.2 billion yuan to produce chemical products such as polycarbonate and bisphenol A. In Saudi Arabia, Mitsubishi Group has already conducted cooperation with Saudi Basic Industries Corporation and plans to further cooperate in the production of methyl methacrylate and other chemical products. Mitsui Chemicals plans to focus on the development of the aromatics business. It is currently preparing to further strengthen its cooperation with Sinopec on products such as bisphenol A and phenol, and is considering participating in the development of a refinery project in Vietnam, and intends to expand its phenol and polyphenols in Singapore. Propylene production base. Asahi Kasei also expands its core business such as acrylonitrile and synthetic rubber materials globally, and Thailand’s joint venture acrylonitrile production project is expected to start production in 2011. In addition, it also plans to invest in a new solution-based SBR production facility in the Middle East and Singapore.

Single Handle Basin Faucet

Single Basin Faucet,Bathroom Basin Faucets,Single Hole Basin Tap,Single Handle Basin Faucet

AIHUI Sanitary Ware , https://www.aihuisanitary.com