The China Petroleum and Chemical Industry Federation (CPCIF) yesterday finished the formulation on development planning of the “13th Five-Year Plan” for new chemical materials, which is likely to issue this month. The CPCIF will also prepare and establish a new material industrial investment fund to enhance the industrial development.
In terms of new chemical materials, China is still at a low level now, with high-performance products and high-end brands mainly relying on import. Therefore, the CPCIF is preparing for a new material industrial investment fund with a scale of 5 billion yuan, which will be fully run based on international management standard. By guidance of the said fund, it will make every effort to promote the internationalization of key chemical materials to a proportion of over 80 percent in the future. The fund will mainly invest the new chemical materials projects which are extremely insufficient in China with proprietary intellectual property rights, including high-performance fiber.
The development of high-performance fiber can show the comprehensive power of a country, and is also a significant material basis to build up a modern and powerful nation. High-performance fibrous composite is an important raw material to develop the national defense & military industry, aviation & aerospace, new energy and hi-tech industry. Meanwhile, it is widely used in many national economy related fields, such as building, communication, machinery, environmental protection, ocean development as well as sports & leisure. Among the top 10 fields determined by the strategy of “Made in China 2025”, seven are closely related to high-performance fiber.
Insider at China National Petroleum & Chemical Planning Institute indicated that, under the industrial fund’s guidance and promotion, China is likely to realize a self-sufficiency rate of 92 percent in terms of high-performance fiber by 2020. Keeping a foothold domestically and realizing self-sufficiency, new chemical materials will possibly become a main engine for transformation and upgrading of the whole industry during the “13th Five-Year Plan” period.
Additionally, there is news recently that Development Guidance on “13th Five-Year Plan” for Petroleum & Chemical Industry, two specialized planning for science & technology and environmental protection have been formulated, and so do those for 21 sub-industries, including oil gas, coal chemical industry and new chemical materials. They will be released in Petrochemical Industrial Development Conference 2016 to be held on April 12. It shows that the “13th Five-Year Plan” on new materials is arriving.
As the main drive for industrial upgrading in the “13th Five-Year Plan”, and also as a significant and strategic emerging industry and preferentially-developed industry, new materials have huge developing potential, and their investment value is likely to further increase, mentioned economist Song Qinghui.
According to Chen Li, chief research officer at Research Institute of Huatai Securities (601688.SH), under the guidance of national strategy, China’s R&D and patent holding on graphene have highly ranked worldwide. China had clearly listed the new materials as important and strategic emerging industry during the “12th Five-Year Plan”. National Natural Science Foundation of China has successively allocated over 300 million yuan for graphene-related projects.
Investors are not unfamiliar with graphene, which aroused a wave of speculation in the secondary market in previous years. In terms of overall industrial chain distribution, it can be divided into upstream, midstream and downstream, which respectively cover graphene materials & equipment manufacturing, various graphene products and their utilization. Currently, the industrial chain mainly includes many fields, such as composites, electronic information and storage.
In terms of whole field, the overall target defined by for graphene in the future is to form an industrial scale of 10 billion yuan in 2020, and break through a strategic goal of 100 billion yuan for the overall industrial scale in 2025, according to Ma Zheng, senior investment counselor at Western Securities (002673.SZ).
The global graphene industry is now at a stage transforming to interim application from early research. The number of China’s enterprises mainly engaged in graphene exceeded 1,000 in 2014.
Translated by Jelly Yi
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