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Strive to build a "new pattern" of domestic and international dual cycle development - Research Report from Wanhua chemical company

strive to build a "new pattern" of domestic and international dual cycle development - Research Report from Wanhua chemical company, coating,

strive to build a "new pattern" of domestic and international dual cycle development - the research report from Wanhua chemical company and can't identify the defects due to misreading

October 14, 2020

the 14th Five Year Plan period is an important historical node in the new journey of building a modern socialist power in an all-round way on the basis of building a moderately prosperous society in an all-round way. The new development pattern of double circulation is a new development strategy proposed in the face of the world's "great changes not seen in a century" and the national development advantages and practical constraints. It is a major plan related to China's development future, and provides guidance and guidance for the "14th five year plan" and even longer-term development

the petroleum and chemical industry is the energy industry, basic raw material industry and pillar industry of China's national economy. Standing on the threshold of entering the new development stage of the 14th five year plan, how to build a new pattern of double cycle development in line with the actual situation of the industry and achieve a new leap in the new journey of building a world power in the petroleum and chemical industry is an era topic that today's generation of petroleum and chemical workers must seriously answer. Wanhua chemical is an innovative leading enterprise in the chemical industry that has emerged in recent years. Since the 1970s, in order to solve the problem of people wearing shoes to become the king of new materials, and from being based at home to going to the world, after more than 40 years of hard work, Wanhua chemical has developed into a globally operated new chemical materials company, with independent intellectual property rights of MDI, TDI, ADI and a full range of isocyanate manufacturing technologies, It has built five major industrial bases at home and abroad. The capacity scale, technical level and market share of MDI, ADI and special amine series products are among the top in the world. In practice, it has accumulated rich experience in innovation driven, domestic and international mutual promotion and coordinated development. In the process of compiling the industry's "14th five year plan" development guidelines, the China Petroleum and Chemical Industry Federation insisted on asking questions and brainstorming, and conducted a special investigation on Wanhua chemistry with the theme of building a new development pattern of double circulation with mutual promotion at home and abroad

recognizing change, responding, and seeking change -- Wanhua chemical put forward the "Three Consciousness"

from the outside world, founded in 1978, Wanhua chemical, which accompanied China's reform and opening up, has grown into a domestic leader in new materials and a strong competitor in the field of International new materials in only 40 years, creating a miracle in the development of Chinese chemical enterprises, has achieved success, and is on the fast track of rapid development. At present, Wanhua chemical's total assets exceed 100 billion yuan, 717 times that of the company's system reform in 1998. In 2019, it achieved an operating revenue of 68.05 billion yuan and a net profit of 10.13 billion yuan. For three consecutive years, its net profit has exceeded 10 billion yuan, forming a highly integrated industrial chain and production of polyurethane (MDI, TDI, polyether polyol, etc.), petrochemical (acrylic acid and ester, propylene oxide, etc.) Three industrial clusters of fine chemicals and new materials (waterborne PUD, PA lotion, TPU, ADI series, etc.). Wanhua chemical has been selected into the top 50 global chemical enterprises for three consecutive years, ranking 32nd in 2020

different from the optimistic attitude of the outside world, the senior management of Wanhua chemical has a strong sense of crisis. What they see is the impact of the unprecedented great changes in a century, the impact of the COVID-19, the continuous rise of unilateralism and trade protectionism, the gap in enterprise management, the huge pressure of technological innovation, and more intense market competition, all of which have brought unprecedented new challenges to the development of Wanhua chemistry. Liaozengtai, chairman of Wanhua chemical, clearly pointed out that Wanhua chemical should keep a clear head. Every employee should not be satisfied with the past achievements and be complacent. They should establish the "three senses" of risk awareness, struggle awareness and development awareness, benchmark with advanced enterprises, keep pace with advanced enterprises, practice hard, tap potential, innovation drive, improve quality and efficiency, and create a new Wanhua in the new development stage

first of all, have risk awareness. Under the strong leadership of the party, China's COVID-19 was quickly controlled, achieving strategic and significant results and ranking in the forefront of the world. China's economy took the lead in achieving a "V" rebound among the major economies in the world. The second quarter was significantly better than the first quarter, and now the third quarter will be significantly better than the second quarter. There is strong optimism in society and Wanhua, and some even believe that the impact of COVID-19 will pass soon. In fact, the impact of the COVID-19 on the world economy is long-term, especially under the great changes that have not been seen in a century, this unprecedented public health crisis has further contributed to the flames, making the world economic and social development more complex and volatile, and facing more and more severe challenges. Chinese enterprises, especially "going global" enterprises and high-tech enterprises, are bound to encounter more difficulties, and even be suppressed in all aspects. All levels of Wanhua chemical must have a sense of crisis, hardship and risk, always remember the original intention, be prepared for danger in times of safety, prepare for a rainy day, scientifically and systematically do a good job in the enterprise's "14th five year plan" development plan, adhere to the construction of a new pattern of double cycle development driven by innovation, and achieve new development achievements in the new development stage

secondly, we should have a sense of struggle. More than 40 years of struggle have made Wanhua chemical today. From MDI technology introduction to independent innovation, from being controlled by others to leading peers, from survival to development, and from domestic to international, Wanhua chemical has encountered unimaginable difficulties. Instead of being intimidated by difficulties and challenges, Wan Huaren worked hard to overcome one core technology after another, broke one technological barrier after another, and achieved a magnificent transformation to an international innovative enterprise through institutional reform and independent innovation. Chairman Liao zengtai mentioned with concern: "The sense of complacency, that the revolution has been successful, and that there is no need to work hard as to increase the area of the oil suction port at the inlet of the oil suction pipe, exists to varying degrees among the cadres and workers. Now the enterprise organization is sound, and the conditions are getting better and better. However, due to the rapid expansion of the talent team, the total number of domestic people has reached 12000, and only this year, about 2200 talents have been recruited through school recruitment and social recruitment, and many cadres and workers are interested in the enterprise The spirit and corporate culture lack understanding and recognition, and the enterprising spirit and will decline, which is very dangerous for Wanhua, and it is difficult to cope with the more complex and volatile domestic and international environment. " He also said with deep feeling: "only every 10000 Chinese has a sense of struggle, can they make steady progress in the more intense market competition and remain invincible."

again, we should have a sense of development. In today's world, the development of science and technology is changing with each passing day, especially the competitors are stepping up the iteration of technological upgrading and striving to move forward to a higher end. If China's petrochemical enterprises make a little slow progress, they may fall behind, or even be left behind by the competitors, and there is no chance to catch up. As an innovative enterprise, Wanhua chemical has a clear understanding of this, takes the initiative to benchmark with large private enterprises such as Hengli, dares to admit that there is a large gap in project construction speed, and puts forward the goal of catching up in the future. The management of Wanhua chemical believes that whether it has a sense of urgency and crisis, whether it can maintain the sense of development and tenacity in the process of entrepreneurship is the key to the success of Wanhua chemical, so that Wanhua chemical can go on a track of continuous development

adhere to the innovation drive and cultivate the endogenous driving force of the domestic cycle

Hua weiqi, executive vice president of Wanhua chemical, believes that the success of Wanhua chemical in developing the MDI industry is due to the continuous upgrading of domestic market demand since the reform and opening up. From shoes, refrigerators, homes, buildings, automobiles, electronics, to 3D printing, the Chinese market has an increasing demand for MDI products and higher quality requirements, Directly stimulate the investment of domestic and foreign manufacturers; On the other hand, in order to meet the demand, Wanhua chemical is also constantly innovating, realizing the upgrading and iteration of technology, expanding production capacity and efficiency, improving the adaptability of MDI product supply to domestic demand. At the same time, through innovation, it has also developed new MDI application fields, guided and created some market demand, and formed a dynamic balance between supply and demand. For example, in view of the problem that the service life of the traditional asphalt pavement is only 3-5 years, Wanhua chemical will use polyurethane materials to achieve a pavement life of 5-15 years and a rutting resistance of 20 times that of the asphalt pavement. It is vigorously promoting the application of new pavement and recycled asphalt macadam pavement

first, rely on the domestic market to gain a firm foothold. "It should be regarded as a key construction project, because the people need it too much." In China 40 years ago, in order to solve the problem of people being able to wear leather shoes, the central leadership issued special instructions, taking out about 4% of the national financial funds that year, and introducing polyurethane synthetic leather production devices from abroad to support Wanhua. In the following 10 years, Wanhua chemical provided raw materials for 200million pairs of synthetic leather shoes, equivalent to one quarter of the raw materials for leather shoes in the country. The Chinese people have achieved a historical leap from "wearing cloth shoes" to "wearing leather shoes"

at the end of the 1980s, China's MDI market experienced a blowout growth, with products in short supply. In the face of foreign technology blockade and its own development bottleneck, and a large influx of foreign products, Wanhua chemical resolutely made the arduous exploration of reforming the system and mechanism, relying on independent innovation, and moving from "plan" to "market" - from being based on the MDI industry to the only company in China that owns MDI, TDI ADI is an enterprise with independent intellectual property rights in the full range of isocyanate manufacturing technology. The capacity scale, technical level and market share of MDI, the leading product of Wanhua chemical, rank first in the world. The capacity and market share of ADI and special amine series products rank second in the world and first in the Asia Pacific. At present, Wanhua has built three industrial clusters with highly integrated industrial chain and production of polyurethane (MDI, TDI, polyether polyols, etc.), petrochemical (acrylic acid and ester, propylene oxide, etc.), fine chemicals and new materials (aqueous PUD, PA lotion, TPU, ADI series, etc.)

"the development of Wanhua chemical is to formulate development strategies according to the changes of objective conditions, so as to meet the needs of consumers in different periods

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