Chemicals

China’s chemicals industry has witnessed a sustained period of high growth rates over the last thirty years. It is currently one of the largest industries after capital goods and light manufacturing. Although many participants have previously expressed concern about over-investment (and consequently over-capacity), domestic demand has consistently kept abreast and growth is expected to remain in double digits for at least the next five years.

All of the major international suppliers are competing in this sector and many strong domestics, aspiring to the BASF or DuPont of China, have emerged. There are also many smaller, regional suppliers in China and their quality runs the gamut from world-class to class-action.

The Chinese government has, of late, been tightening quality and toxicity-related regulations on products sold in the domestic market which is squeezing out the small, low-end producers. While the multi-nationals may control much of the high-end of the market, the middle-end is contested by foreign, local private and state-owned firms alike, with significant merger and acquisition activity influencing the make-up of this dynamic sector.

GCiS has been involved in several custom studies of chemicals and chemicals equipment markets. Recent work has included a partner search for an organic intermediates supplier, a feasibility study of the market for synthetic surfaces and a full study of the market for anti-corrosive coatings.