Opportunities for Coal Chemical Industry Companies – TOIPO CAPITAL
China's policy still encourages coal chemical industry in general as before, despite the impact of current international oil price slide, but it has different rules for different sub-sectors of coal chemical industry, said an official with Industrial Policy Department of the Ministry of Industry and Information Technology (MIIT).
According to statistics from the National Development and Reform Commission, there are 30 coal chemical projects under construction with a total investment of over 80 billion yuan, which is expected to receive an increased production capacity of 8.5-million-ton methanol, 0.9-million-ton dimethyl-ether, one-million-ton olefin, and 1.24-million-ton coal-to-oil. However, the production capacity of projects on file included 34 million tons of methanol, three million tons of olefin and three million tons of coal-to-oil.
Regarding the blind investments and repeated construction in coal chemical industry, Chinese government carried out a series of restrictive policies and raised the industry access threshold earlier, but generally encourages coal chemical industry as before, not considering such temporary change as international oil price plunge.
Along with the coming of the high oil price era, modern coal chemical industry that focuses on large coal gasification programs has become a hot industry in the global economic development, as the energy resource & chemical integration mode of modern coal chemical industry could decrease the dependence on crude oil resources and effectively solve pollution and emission problems of energy-consuming industries such as traffic, coal-fired power, etc.
China has three advantages in the process of transforming towards new coal chemical industry: firstly, thanks to mature development and solid industrial basis, traditional coal chemical industry has advantages in making use of new technologies to renovate traditional industry and expand newly-rising industry; secondly, China's domestic new coal chemical technologies and equipping level improved a lot through imitation and innovation; thirdly, in order to develop local economy and upgrade the local industry, local governments actively support the enterprises to develop coal chemical programs, which leads to a new round of investment surge. Rational guidance of this trend through scientific plan will be favorable for the development of the industry.
China will introduce advanced and mature coal chemical technologies from abroad during periods of “Eleventh Five-Year Plan” (2006-2010). The most distinct characteristic of “Eleventh Five-Year Plan” is that domestic technologies and equipments will gradually realize experimental and demonstration operation. Along with the maturity of domestic technologies, large industrialized mode of modern coal chemical industry is expected to appear by about 2010.
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