Beijing – China Polyurethane Industry Association (CPUIA) has issued guidelines in May for the industry’s development for the period from 2021 to 2025.
The country has become the world’s largest maker of polyurethane raw materials. Its raw material capacity accounts for more than a third of the global total.
In 2020, China’s consumption of PU products, including solvent-based dispersions was 11.8MT. According to the guidelines, the country’s diisocyanate production has world-leading technology, and polyols, additives and machinery are all catching on.
There are still problems in sustainability and smart, standardised manufacturing, and the medium- and long-term effects of the coronavirus pandemic is casting shadows of uncertainty over the next five years.
Despite these concerns, CPUIA urges more efforts to be made in fundamental and application research for the sector, and better protection of intellectual property. It believes this is the route to technological breakthroughs that can be shared by different market segments. It also wants to see fundamental research applied to the manufacturing process and machinery sectors.
In addition, CPUIA aims to raise company sizes and the level of industrial concentration and integration of supply chain. It encourages smaller firms to form group companies through merger and acquisition, reorganisation and the joint-stock system reform.
Makers of raw materials are being prompted to speed up their relocation to chemical parks. CPIUA believes these parks will act as incubators for new technology, and help generate integrated industrial clusters.
CPUIA has laid out detailed plans for each segment. The country’s TDI capacity stood at 1.38MT/year in 2020, of which 84% was consumed by flexible foam and coatings. MDI capacity reached 3.34MT/year in 2020; consumption totalled 2.45MT. TDI capacity has been expanding at a much faster rate than MDI.