At the end of 2024, the map of # Chemical Industry in western China is undergoing an unprecedented change. With the in-depth implementation of the national western development strategy, the signing and commissioning of a series of major chemical projects not only injected strong impetus into the regional economy, but also marked that China's chemical industry is accelerating its transfer to the west, opening a new stage of development. Among them, Ningxia Hui Autonomous Region, as an important province in western China, has played a decisive role in this round of chemical industry layout. Chemical industry leaders are aiming at western investment in succession. On December 28th, 2024, Yinchuan, the capital of Ningxia Hui Autonomous Region, ushered in a far-reaching signing ceremony. Li Yifei, Secretary of the Party Committee of the Autonomous Region, Zhang Yupu, Deputy Secretary of the Party Committee of the Autonomous Region and Chairman of the Autonomous Region, met with Li Mao, Secretary of the Party Committee and Chairman of China Pingmei Shenma Group (Pingmei Shenma Group), and witnessed the formal signing of the Nylon Industry Chain Project in Ningdong. The total investment of this project exceeds 10 billion yuan, aiming to build a whole industrial chain covering caprolactam, nylon yarn and other products. This signing is not only an important supplement to Ningxia chemical industry chain, but also a key step for Pingmei Shenma Group to expand the production capacity of raw materials in the upstream of nylon industry chain. Prior to this, Pingmei Shenma had invested about 270 million yuan in advance to build a 20,000-ton/year Esan (aminocapronitrile) project, which was successfully put into production in the third quarter of 2023. This series of actions shows the deep layout and firm confidence of Pingmei Shenma in the western market. The layout of Pingmei Shenma is only a microcosm of the vigorous development of the chemical industry in the west. In recent years, many chemical giants, including National Energy Group, Heart-to-Heart Group and Huayi Group, have set their sights on the west, with unprecedented investment scale and projects. The 100,000-ton/year ethylene-vinyl acetate copolymer (EVA) project and the 700,000-ton/year new material project invested by National Energy Group in Ningxia coal industry not only promoted the upgrading of local chemical industry, but also provided strong support for national energy security. Xinlianxin Group has made efforts in Xinjiang and Guangxi at the same time. The 60,000-ton polyoxymethylene project and the compound fertilizer project in Guangxi base have been put into production one after another, which indicates that Xinlianxin Group is accelerating its expansion to the central and western markets and further consolidating its leading position in the chemical industry.
What do giants see in the Midwest? The layout of Huayi Group in Guangxi is equally eye-catching. From the integration project of methanol to olefin and downstream deep processing to the project of 200,000 tons/year epoxy resin special new material, Huayi Group is practicing the strategy of developing the western region with practical actions to promote the development of the chemical industry chain in the direction of high-end and refinement. Especially in the third phase project of Huayi Qinzhou Base, the smooth hoisting of the 1 million tons/year methanol to olefin (MTO) device marked that the construction of the base entered a new stage, which added a lot of color to the rise of the western chemical industry. In addition to the above giants, there are many projects in the west, such as Xiaoxing spandex, Ningxia Taiyangshan Green Hydrogen Production, Storage and Transportation Integration Project, Xinjiang Jingfang Aramid New Materials Co., Ltd. The implementation of these projects not only enriched the product structure of the chemical industry in the west, but also promoted the diversified development of the local economy and injected new vitality into the transformation and upgrading of the western region. So, why are chemical giants optimistic about the west? There are profound reasons behind this. The western region is rich in oil and gas resources, salt lake resources and coal resources, which provide sufficient raw material guarantee for the production of chemical products. In particular, the unique chemical composition of salt lake resources makes the western region have unique advantages in the production of chemical products such as potash fertilizer, lithium and magnesium. In addition, as the chemical industry chain moves to the west, the market of chemical products also moves to the west, thus reducing the transportation cost and enhancing the market competitiveness of western chemical industry. More importantly, the western region is suitable for building new energy power stations such as photovoltaic and wind power. With the continuous progress of new energy technology and cost reduction, new energy power generation will show considerable economy in the future. For the chemical industry, this means cleaner and more sustainable energy supply, which is helpful to promote the green transformation of the chemical industry. In terms of technological innovation, western chemical enterprises are also unwilling to lag behind. Faced with the change of market demand and the improvement of environmental protection requirements, these enterprises have continuously increased their investment in research and development, and promoted technological innovation and industrial upgrading. Through the introduction of advanced technology and equipment, the added value and market competitiveness of products will be improved, and it will gradually develop in the direction of high-end and refinement. This trend not only improves the overall level of chemical industry in western China, but also provides strong support for the transformation and upgrading of chemical industry in China. Looking forward to the future, with the continuous and in-depth implementation of the strategy of developing the western region, the chemical industry in western China will have a broader development prospect. Under the guidance and support of policies, more chemical giants will flood into the west to jointly write a new chapter in China's chemical industry. Ningxia Hui Autonomous Region, as an important part of western chemical industry, will play a more important role in this transformation and contribute to the transformation and upgrading and high-quality development of chemical industry in China. Attachment: What chemicals are encouraged to develop in the west? It is one of the important policies of the western development to levy enterprise income tax at a reduced rate of 15% on enterprises engaged in encouraged industries in the western region. The Catalogue of Encouraged Industries in the Western Region (2025 Edition), which will be implemented on January 1, 2025, defines the industrial scope to which the preferential income tax policy for enterprises in the development of the western region applies, and is the main basis for enterprises to enjoy this policy. Among them, the Ningxia Hui Autonomous Region to encourage investment projects mainly include: Production of 200,000 tons/year and above vinyl acetate, 60,000 tons/year and above polyvinyl alcohol, 100,000 tons/year and above polycarbonate (PC), 60,000 tons/year and above ethylene oxide, 60,000 tons/year and above polyformaldehyde, electronic-grade high-purity chemicals, production of nitric acid by double pressurization method, 50,000 tons/year and above of lime nitrogen in a rotary kiln for a single set of devices, and 10,000 tons by low-temperature circulating separation method with feeding liquid. Biological fermentation, chemical synthesis of amino acids, production and deep processing of high-purity L- lactic acid; Production of coal-based olefin downstream materials (mainly including production of long carbon chain dibasic acid, perfume essence, 1,4- butanediol, polytetrahydrofuran, TPVA barrier application resin, adipic acid, polybutylene -1, etc.); R&D and manufacture of high-end intelligent control valves and intelligent positioners with high pressure resistance, high and low temperature resistance and low noise for large-scale coal chemical industry, petrochemical industry, thermal power plant, oil and gas storage and transportation, marine engineering and other fields; Clean coal technology development and equipment manufacturing such as coal gasification, comprehensive utilization of tail gas and liquefaction synthesis; Production of carbon materials (including graphene and nano-carbon materials, carbon fibers, diamonds, carbon materials for energy-saving and environmental-friendly large submerged arc furnaces, etc.); Production of electronic-grade crystalline silicon, electronic ceramics, sputtering targets, electronic chemicals, electronic special gases and other chip manufacturing materials and packaging materials, production of high-quality industrial sapphires, production of organic materials and intermediates for semiconductor display, and production of organic materials for improving the light utilization rate of photovoltaic modules or agricultural film materials; Production of high-performance fibers and composite materials, including spandex, aramid fiber, PA66, MDI, etc. Development and utilization of chemical production waste, etc. Encouraged projects in Xinjiang Uygur Autonomous Region include: R&D and production of green coal chemical products; Ultra-deep oil and gas exploration and development, equipment manufacturing and technical engineering services; Organic chemical raw materials produced by large-scale oil refining, ethylene and aromatic hydrocarbon production facilities are deeply processed in situ, and engineering plastics, synthetic resins, plastic plates, pipes and profiles are manufactured; Potash exploration and exploitation and comprehensive utilization of brine resources; Development and production of carbon-based, silicon-based and fluorine-based new materials, new structural ceramic materials, and high-end new functional materials and reagents such as nano-materials, high-purity functional new materials, rock fibers and their products, aerogels; Comprehensive utilization of industrial waste gas and development and production of downstream products (carbon dioxide, gas, sulfur dioxide, nitrogen, ammonia, argon, trichlorosilane and hydrogen fluoride organic gases); Research, development and application of recycling technology of agricultural plastics.
