Basic chemical industry

Our country's chemical industry started earlier, but the starting level is not high, and each subdivision industry still has the characteristics of small scale, large number and low level of device technology to varying degrees.

In recent years, due to internal and external factors such as mergers and acquisitions in the industry and environmental protection verification, the pace of industrial capacity adjustment has accelerated, and industrial concentration has increased.

(3) Major leading companies in the industry

At present, there are many enterprises engaged in basic chemical industry, and there are mainly such companies (only citing cases, there may be some omissions, and they are not recommended as targets) :

Jinhe Industrial Co., LTD. (002597) was founded in 2006, headquartered in Chuzhou, Anhui Province, and listed on the A-share of small and medium-sized board in 2011. It is an enterprise specializing in the production, research and development and sales of fine chemical and basic chemical products, biological and new material products. It can be classified into food additives, bulk chemicals, pharmaceutical intermediates, functional chemicals and intermediates, etc.

Juhua Stock (600160) was founded in 1998, headquartered in Quzhou, Zhejiang Province, and listed on the main board A shares in 1998. It is a domestic leading fluorine chemical and chlor-alkali chemical comprehensive supporting fluorine chemical manufacturing enterprises. Its main business is the research and development, production and sales of basic chemical raw materials, food packaging materials, fluorine chemical raw materials and follow-up products. With chlor-alkali chemical industry, sulfuric acid chemical industry, coal chemical industry, basic fluorine chemical industry and other necessary industrial supporting system, and on this basis, formed a complete fluorine chemical industry chain including basic supporting raw materials, fluorine refrigerant, organic fluorine monomer, fluoroppolymer, fine chemicals, etc., and involved in the petrochemical industry.

Founded in 1997 and headquartered in Jiaxing, Zhejiang Province, Xinhua Shares (603867) was listed on the main board A shares in 2019. Xinhua Shares is a national high-tech enterprise engaged in fatty amines, organic solvents, flavors, hydrogen peroxide and other fine chemical products. The main products include fatty amines, organic solvents, flavors, phosphorus chemical products, hydrogen peroxide, ammonia, surfactants and so on.

Xinghua (002109), founded in 1997 and headquartered in Xianyang, Shaanxi Province, was listed on the A-shares of the small and medium-sized board in 2007. It is A large-scale chemical enterprise with the production and sales of coal chemical products as its main business. Its main products are the production and operation of synthetic ammonia, methanol, methylamine and DMF with coal as raw material by utilizing Shaanxi's superior resources.

(4) Major obstacles to entry into the industry

1. Financial barriers.

Basic chemical products generally have the characteristics of large output, high energy consumption, capital intensive and economy of scale. Therefore, the state vigorously supports basic chemical enterprises in industrial policy to become bigger and stronger in order to change the pattern of low industrial concentration and dispersed layout. At present, relevant industrial policies encourage and guide the improvement of the minimum standards for single-line production scale, and strive to eliminate small enterprises with backward technology, high energy consumption and heavy pollution. The main products synthetic ammonia, nitric acid, sulfuric acid and other continuous production equipment requires a large scale of fixed assets investment,

To ensure stable product quality and safety and environmental protection. At the same time, as the hazardous chemicals industry needs professional storage equipment for product storage, it also needs to be transported by professional transportation companies with hazardous chemicals transportation qualifications. Therefore, large-scale capital investment constitutes a barrier to new entrants in the industry.

2. Environmental barriers.

The chemical industry attaches more importance to environmental protection than other industries, and the chemical industry is also the key monitoring industry of the environmental protection department. With the continuous improvement of environmental protection requirements in our national industrial policy, new chemical projects must meet more stringent environmental protection standards, and new entrants must increase investment in energy conservation and environmental protection, constantly optimize and improve the production process and comprehensive utilization of energy, and reduce pollutant emissions. The environmental protection measures taken by new projects and projects in production to meet the national environmental protection requirements, as well as the corresponding environmental protection equipment and personnel investment, all constitute barriers to entry for industry participants.