More than 15 chemical giants have entered China

Citing the overseas media "Wall Street Journal", more and more European chemical companies have difficulty predicting their energy consumption and formulating budgets
.
Energy supply, geopolitical conflicts and the current state of the European economy are also affecting the investment plans of multinational chemical companies, and many chemical giants have increased investment in
Chinese projects.

Whether it is the catalyst brought about by the spread of the epidemic or the escalation of the Russian-Ukrainian conflict, the European region has fallen into a "cold winter", and the energy and chemical industry is facing a huge test of
life and death.
BASF said that natural gas supply restrictions may bring about the risk
of downtime at major European production sites.
CF Fertilizer has closed its ammonia and fertilizer plant
in Ince, UK.

Foreign giants smashed 100 billion yuan to seize the Chinese market

German natural gas prices have risen by at least 370% in a year, in addition to "lying flat" such as production cuts and shutdowns, what better options are there for chemical companies? Some viewers said that since they are deeply caught in the "gas cut" storm and the road to "seeking gas" has frequently hit a wall, why not go directly to a place with lower energy costs to build a factory? In fact, many overseas chemical giants have done this for a long time, which makes people have to admire the foresight of overseas chemical giants such as BASF and Covestro
.

BASF announced that its first plant in Zhanjiang, southern China, started operations in mid-early September, the largest overseas investment to date, totaling €10 billion (69.
3 billion yuan).

Covestro invested tens of millions of euros in two new plants at the Shanghai Verbund site to produce waterborne polyurethane dispersions (PUDs) and elastomers
.
The new PUD plant and accompanying polyester resin production line will be completed in 2024, and the new elastomer plant is expected to be operational
in 2023.

Nippon Bond is located in Zhenjiang Jurong Lingang Industrial Zone Nippon new materials East China regional production base project construction site, 16,000 square meters of steel structure workshop is being hoisted, it is expected that the steel structure of the plant will be topped out in October, and it is expected to be completed and put into production
in the middle of next year.

Evonik announces the upgrade of its R&D site in the Xinzhuang Industrial Park in Shanghai and the official name change to "Evonik Innovation Park Shanghai"
.
After the upgrade, the Shanghai Innovation Park will integrate
basic research, product development, process development, pilot plant, application technology, testing and analysis services and venture capital activities.

INEOS has signed a series of agreements with Chinese oil and gas company Sinopec that represent assets with a total capacity of 7 million tons per year worth nearly $7 billion, including the establishment of a 50:50 joint venture to produce acrylonitrile butadiene styrene
using its unique ABS technology.

AkzoNobel announced the official start of construction of its decorative paint East China logistics base in Songjiang, Shanghai, which will be officially opened in June 2023
.
With an investment of about 75 million yuan, the logistics base is located in Shanghai Songjiang Decorative Paint Factory and is expected to become AkzoNobel's largest logistics base
in China after completion.

PPG Coatings (Zhangjiagang) Co.
, Ltd.
, a wholly-owned subsidiary of PPG in China, is scheduled to complete the third phase of the project in June this year
.
With a total investment of 75 million US dollars (about 533 million yuan), the project covers an area of 174 mu, and will form an annual production capacity
of 145,000 tons of high-performance coatings and 5,000 tons of PVC sealant.

IN JULY, THE ROHM Group announced a new award to Shanghai-based plexiglas.
The molding compound plant is being expanded and is expected to be completed and put into operation
in the second quarter of 2023.

South Korean power battery company LG Chem (LGChem) said it had acquired a 40 billion won (about 200 million yuan) stake in Jiujiang Defu Technology, China's third-largest copper foil maker, to ensure a stable supply of
core battery materials.

South Korean chemical company SKchemicals said it was buying a 10 percent stake
in Chinese polyester waste recycler Shuye Environmental Protection for 23 billion won (about 115 million yuan).

According to the national technology announcement, the company's holding company Inner Mongolia Snow New Material Technology Co.
, Ltd.
signed a capital increase agreement with South Korea's POSCO and Zhejiang Huayou Cobalt, and South Korea's POSCO Chemicals subscribed for the newly added registered capital of the restructured Inner Mongolia Sino with RMB 141 million in cash and acquired 15% of the equity
of Inner Mongolia Sino after the transaction.

CSPC Huizhou Phase III ethylene project "cloud signed"
in China and the United Kingdom.

Total Energies China and Hainan International Economic Development Bureau signed a memorandum of understanding to jointly promote the development of
clean energy business and technology.

Merck's first OLED screen coating material production base in China was officially completed and put into operation
in Jinqiao, Pudong, Shanghai.

Mitsubishi Chemical (China) Management Co.
, Ltd.
signed a contract with the Administrative Committee of Suzhou High-tech Zone to set up a Mitsubishi Chemical Shared Service Center in the zone to intensively manage its business
in China.

According to incomplete statistics, in recent years, foreign capital has invested nearly 100 billion yuan in new chemical materials and other fields, and other chemical giants are also continuing to follow up with investment
.

Whether the heavy investment of foreign-funded enterprises will bring a pull to China's
chemical market, the answer is beyond doubt.
China's chemical industry is mainly concentrated in basic fine chemicals, and the profit is low
.
The support of these foreign-funded chemical leaders will introduce international high-end technology and management experience to help promote the development of domestic related industries, and can also stimulate market vitality, drive the domestic chemical market to improve simultaneously, and even subvert the current chemical industry structure
.
But the disadvantages are also obvious, for localized enterprises, it is a huge impact
.