Knowledge

 

Links to more than 150 papers covering aspects of the chemical industry, particularly  in China, with a few words on the content. Grouped by topic.

 

General aspects of the Chinese chemical industry

• "The Presence of Multinational Companies in China’s Chemical Industry – A Benchmarking Study"
  Talking more than doing

• Decarbonization and Increased Self-Sufficiency - Two Major Objectives of China's Chemical Industry
  Two targets that are not necessarily contradictory
• China`s Chemical Industry
  An overview written for the GC Ticker (p. 24-27)
• Continuation rather than a change - Preview on the 14th Five-Year Plan and China`s Chemical Industry
  A cheap crystal ball
• Government Encouragement of Foreign Investment in China`s chemical industry: Which Chemical Products and Segments are Affected?
  With such a long title, there is no need for further information on the content
• 14th Five-Year Plan and Implications for China`s Chemical Industry
  Some early hypotheses
• Recent Cross-Border M&A Activities of Western Chemical Companies Entering the Chinese Market
  There has been a minor boom in these transactions in the first half of 2020. Find out why and where.
• Potential strategic implications of the coronavirus for the global chemical industry
  There will be changes
• Overseas Acquisitions: A Unique Opportunity for Chinese Chemical Companies to Gain Competitive Advantage
  Now is the time.
• The Corona Virus and the Chemical Industry
  A very early comment. 
• China`s Standing in the Global Chemical Industry
  Different parameters give different results
• Chemical Parks in China
  An overview: There are many, but they are not all of the same quality. Choose wisely.
• Still betting on China: Recent Massive Investments by Foreign Chemical Companies
  The hype is gone. The investment continues. German version here
• The Importance of the Chemical Industry for China`s Industrial Sector
  Self-explaining, I guess
• China`s VOC Management and Impact on the Chemical Industry
  From the replacement of individual chemicals to broader technology shifts
• Issues related to Foreign Chemical Acquisitions in China, and how to deal with them
  It is difficult, but it probably needs to be done
• Strategic Rationale for Chemical Acquisitions in China
  Why companies buy other companies
• Consolidation in China`s Chemical Industry - Is it finally happening?
  Yes.
• Opportunities in Cooperation between Indian and Chinese Chemical Companies
  It is time these two countries work together more closely
• Potential Impact of the U.S.-China Trade Issue on the Chemical Industry Supply Chain
  Trade war? Trade conflict? Call it what you will, it has an impact on global chemical supply chains
• Comparing the Valuations of Chinese and Non-Chinese Chemical Companies using EBITDA Multiples
  Chinese chemical companies are not always valued more highly, but they are in some segments
• Acquiring a chemical company in China
  Why this is in some ways different from doing the same in the Western world 
• Economic impact of tightened environmental regulation on Chinese chemical industry
  A look at some of the consequences - quite positive so far
• Improving Energy Generation for China`s Chemical Industry
  Showcasing some of the advantages of having specialized providers taking over the supply of chemical parks
• Impact of tightened environmental regulation on China´s chemical industry
  An almost academic overview
• Sustainability - already a topic for China´s Chemical Industry?
  Sustainability is getting more important as the environment matters more to government and customers alike
• Outlook for the Chinese chemical industry to 2025
  Every now and then we take out our old crystal ball
• Foreign-domestic Joint Ventures in China´s chemical industry
  A rundown on pros, cons and recent trends
• Chinese Outbound Chemical Acquisitions
  Why there are fewer than there should be, and how to change that
• China′s Belt and Road Initiative (BRI) and the Chemical Industry
  What it means and why it may be overrated for Western chemical companies
• Stock market performance of Chinese chemical companies 2015-2017
  No particularly interesting findings, I am afraid.
• The chemical industry (GC Ticker 2018)
  A brief summary of the overall situation including characteristics, trends and challenges
• Industry 4.0 and the chemical industry in China (CCR 2017)
  While this is partly a hype, there are also some useful aspects.
• Chemical Parks in Europe and China: Similarities, Differences, Learnings (CCR 2017)
  Written with an expert on chemical parks in Europe
• Process Optimization Potential at Chinese Chemical Producers (CCR 2017)
  Quick wins to improve product quality and reduce production costs 
• Stricter Regulation as An Opportunity for Chemical Companies in China (CCR 2017)
  Regulation as opportunity, a cliche with some truth in it for Western companies 
• Chemical Parks in China: Status, Developments and Issues (CCR 2017)
  What is happening, what is good, what needs to improve 
• Does Ownership Type Matter (CCR 2016)
  Ownership type and its correlation to economic success in China´s chemical industry - with recent data 
• Thriving in a Challenging Market (ICIS Chemical Business 2016)
  An overview of some of the most important aspects of China´s chemical industry 
• China´s Mid-Market for Chemicals (CCR 2016)
  A concept that is not so new any longer, but it is getting a bit more solid
• Chemical Regulation in China and Europe (Elsevier Chemicals and Materials 2016)
  Does regulation drive innovation, or hinder it?
• Regulation as a Driver of Innovation in China's Chemical Industry(Elsevier Chemicals and Materials 2016)
  In China, regulation often acts as a driver rather than a barrier for innovation
• Complexity as a key entry barrier in the chemical industry (Elsevier Chemicals and Materials 2016)
  Seek complexity if you want to reduce competition from Chinese players
• China - the Future of Chemical R&D (Elsevier Chemicals and Materials 2016)
  Why China will be the future main global location for chemical R&D
• Invented in Shanghai? Chemical R&D in China (Elsevier Chemicals and Materials 2015)
  Competition between MNCs and domestic companies in doing chemical R&D in China
• Chinas 13. Fünfjahresplan und die Chemische Industrie: Ein kurzer kommentierter Überblick (CheManager 2016)
  China´s Five-Year Plan with some comments - in German, unfortunately. Please mail me for an English version. 
• China - Becoming A Net Exporter for An Increasing Number of Chemicals (CCR 2015)
  How China is rapidly turning into a net exporter for many chemicals, changing global markets. Frightened? You should be.  
• Der Chemie-Quotient - Neue Maßzahl veranschaulicht die Bedeutung der Chemieindustrie in verschiedenen EU-Ländern (CheManager 2015)
  Similar to the previous paper, but in German and with a stronger focus on historical development and on Europe 
• Measuring China’s Importance - Chemical Quotient Quantifies Relative Status of Chinese Chemical Industry (CheManager Int. 2015)

A remix of the earlier CCR article with some added information. Newer, better.

• The Way to Go? M&A as Growth Path for Chinese Chemical Companies(CCR 2015)
  Instead of adding new capacity, better buy the capacity of your competitor, whether it is a domestic or an overseas one.
• The Importance of China as Global Chemicals Market, as Measured by the Chemical Quotient (CCR 2015)
  As IQ and EQ are already taken, I am now trying to get famous by establishing the CQ. Soon you will see me in talkshows.
• Complementary Capabilities? Opportunities for Chemicals Trade between China and India (CCR 2015)
  My perception is that the direct contact between China and India in the chemical area becomes more and more important 
• Intellectual Property in China's Chemical Industry (CCR 2015)
  Localization of the value chain will require foreign companies to bring more chemical IP into China, and to make sure it does not get lost.
• China´s Chemical Industry: The case for knowledge management" (CCR 2015)
  As China´s chemical companies get bigger and more professional, they need to better manage their knowledge to be competitive with Western players.
• Wanhua - The Challenges of Establishing a Global Presence" (CCR 2014)
  The company has done a lot of things right so far, but more challenges are ahead.
• Chemistry´s contribution to China´s present and future (CCR 2014)
  Something to give your kid to read, to make him or her study chemistry. I hope.
• Improving China´s Domestic Chemical Companies" (CCR 2014)
  While local chemical companies currently generally do better than foreign ones, they still have a lot of improvement potential. Not a pleasant thought if you are a multinational competitor.
• Correlation between Sales and Profit Development and Ownership Type in the Chinese Chemical Industry" (Journal of Business Chemistry 2014)
  A more in-depth analysis of the same topic discussed in the CCR. Slightly more academic too.
• Correlation between Ownership Type and Sales/Profit Growth in China´s Chemical Industry (China Chemical Reporter 2014)
  The statistical data is surprisingly clear: Private companies in China grow much faster than foreign companies, which again grow faster than SOEs.
• Why are foreign chemical companies growing more slowly in China? (China Chemical Reporter 2014)
  Foreign chemical companies have grown more slowly than private domestic companies. We try to explain why.
• China tackles its major economic issues (CheManager International 2014)
  Actually, this is about the government influence on the chemical industry. Apologies for the slightly misleading title - not my doing.
• Attractive Segments in the Chemical Industry in China (China Chemical Reporter 2014)
  What everybody asks me: Which segments are the best? With a strong focus on specialty chemicals. 
• The Strategy Development Process of Chemical Companies in China (China Chemical Reporter 2014)
  The process, the tools, some specifics of the process in China, and an offering of training. 
• Western Players and the Chinese Chemical Market. Is the Playing Field Level? (CheManager International 2014)
  Notes on some of the disadvantages Western chemical companies face in China - often more via informal than via formal rules. However, China is not unique in favoring local companies, and particularly state-owned entities face their own difficulties. 
• Chinese Acquisitions Gives Local Access to Foreign Chemical Companies (CheManager Europe 2013)
  Why it is difficult to buy a local chemical company, and why Western chemical companies still do it. With some recent examples. 
• The Chemical Industry in China and the Middle East: Cooperation or Conflict? (CheManager Europe 2013)
  As the chemical industry matures further, the importance of knowledge relative to raw materials and market access declines. This may hurt Europe but may lead to stronger relationships between the Middle East (raw materials) and China (markets).  
• Change in China. Transformation of the Chinese Economy and Consequences for Chemical Industry (CheManager Europe 2013)
  A segment-specific look at how the macroeconomic changes in China will affect individual areas of the chemical industry. Some win, some lose. A similar Chinese version of the article is available here (China Chemical News 2013) 
• Is this the Chemical Promised Land? An Overview of the Chemical Industry in China (GC Ticker 2013)
  An annoying title for a fairly comprehensive overview with a focus on some major trends. With some irrelevant stock photos.  
• Chinese Chemical Industry and Environmental Protection. Tightened Regulations Not Always Transparent for Western Companies (CheManager Europe 2013)
  Some cause for longer-term optimism as the interest of the Chinese middle classes in a liveable environment increases, and government follows with increased regulation 
• Buchrezension: Umweltproblematik in China (Nachrichten aus der Chemie 2012) the
  Review of a book on the topic by Ms. Shapiro. In German. 
• Chinese Risk Management - Are Chinese Chemical Companies Actively Managing Their Risk? (CheManager Europe 2012)
  It is not that Chinese chemical companies do not try to reduce their business risks. They just do not do it in a systematic and structured way.
• Intellectual Property Safeguards in China (CheManager Europe 2012)
  IP protection is gradually improving in China, and companies are getting more adept at protecting their IP in the first place
• China's Midmarket - How Domestics and Multinational Companies Compete (CheManager Europe 2012)
  The mid-level quality levels are those levels where Western and domestic companies compete directly, either by simplifying their existing offerings (MNCs) or upgrading their initial portfolio (Chinese companies).
• Market Drivers - Trends in the Chinese Chemical Industry (CheManager Europe 2011)
  It is not easy to discuss industry trends while trying to avoid the most common buzzwords (Commoditization, consolidation, globalization, innovation, sustainability).
• Private Equity in the Chemical Industry (China Chemical Reporter 2011)
  Compares the role of private equity in the chemical industry in China and in mature markets. There are more differences than similarities. 
• Lessons from the History of the Global Chemical Industry for China''s Companies (China Chemical Reporter 2011)
  The maturity of the chemical industry in China is much lower than that in the West. This can be used to deduct some future developments and requirements for industry participants.
• Chemical Industry R&D Cooperation in China. An Underutilized Opportunity (CheManager Europe 2011)
  A typology of R&D cooperations with examples and evaluation 
• Localization - Key to success for multinational chemical companies in China (China Chemical Reporter 2011)
  An appeal to foreign chemical companies to systematically go through their value chain and check for localization opportunities in order to stay competitive.
• Strategy Development in China´s Chemical Industry by Foreign and Domestic Companies (Business Forum China 2010)
  A key observation is the very low importance local chemical companies give to their own capabilities and competencies, resulting in their strategies being dominated by external opportunities rather than by a balance of the external situation and company-internal factors 
• Getting Innovation in China right (China Chemical Reporter 2008)
  Improving innovation capabilities of Chinese companies will require a change in mindset that not only allows for short-term, predictable development work but also for more risky, but potentially more rewarding research activities
• Location, Location, Location. How to Search for a Chemical Site in Asia (Chemanager 2008)
  A discussion of factors relevant for site selection. Don´t forget that expats will want an international school for their kids near the site.
• Between Ambition and Reality. Environmental Protection in China (EuroBiz 2008)
  A moderately optimistic assessment of the development of environmental protection in China. Fortunately, as of writing this comment in 2014, this has proven to be fairly correct.
• How Serious are Environmental Concerns [in China]? (CheManager Europe 2008)
  An article similar to the EuroBiz one above. Responsible usage of limited resources.
• Umweltschutz und Chemie in China (Chemie und Wirtschaft 2007)
  Examples for environmental pollution in China, and some reactions 

 

HR and related areas in the Chinese chemical industry

• No Longer the Employer of Choice? Attractiveness of Multinational Chemical Companies versus State-owned Enterprises for Mainland Chinese Chemical Professionals
  MNCs used to be the preferred employers of Chinese chemical professionals. For some of them, they still are. Read a German version of this paper here.
• Implications of the Closing Wage Gap between European and Chinese Chemical Industries (CheManager International 2014) 
  Information on salary development in the chemical industry in China, and the response of companies to these developments. Concludes that these developments are unlikely to strongly harm chemical industry development in China.  
• Voraussetzungen für den Erfolg als Expat-Manager in der chinesischen Chemieindustrie (CheManager 2014)
  A discussion of capabilities, skills and characteristics required to be a successful expat manager in a chemical company in China. German language. A pdf file of a similar article in English is available here (China Chemical Reporter 2014).  
• Was müssen westliche Chemiker in chinesischen Chemieunternehmen beachten? (CheManager 2013)
  Experiences of Western chemists who have worked in Chinese companies. They have had their share of frustration. German language. A pdf file of a similar article in English is available here (European Rubber Journal 2013) or here (unpublished longer version). 
• Some HR issues of MNCs in the Chemical Industry in China (China Chemical Reporter 2011)
  A shallow talent pool, the tendency to job-hop and the increasing attractiveness  of domestic companies make it difficult for foreign chemical companies to establish a qualified workforce. 

 

Individual segments of the Chinese chemical industry

• Fine Chemicals in China
  Called specialty chemicals in many other regions ...
• Recent Trends and Developments in China`s Coatings Market
  Ok, not the most creative title but at least you know what the paper will be about
• Overseas Growth Opportunities for Chinese Agrochemicals Companies
  Domestic opportunities are limited by government policy but there are opportunities abroad
• Challenges and Strategies for Chemical Parks in China
  In contrast to chemical parks in Europe, in China all the pressure comes from the government, not from the tennants. This will change
• Renewable Energy as a Market Opportunity for Chemicals
  Some areas where the chemical industry can help make our economy more sustainable
• Automotive Developments and Implications for the Chemical Industry in China (CCR 2019)
  More about this important customer of the chemical industry, and the expected changes in demand
• Recent Developments in Electric Passenger Cars and Implications for Chemicals in China (CCR 2017)
  The shift towards electric vehicles will affect the demand for many chemicals, not only battery materials
• Recent Regulatory Developments in Plastics Additives in China (CCR 2017)
  Regulation is not as mature as in Western markets, but implementation gets stricter
• Developments in China’s Automotive Market and Impact on Plastics (CCR 2017)
  Lower volume growth but value still rising. 
• Challenges and Opportunities for Commodity Chemicals in China (CCR 2016)
  This one focusing on examples for opportunities. 
• Challenges and Opportunities for Specialty Chemicals in China (CCR 2016)
  Another contender for the coveted "Most boring title" award. Content is kind of interesting though.
• China´s Coatings Market - A Mid Year Update (ECJ 2016)
  An updated version of the earlier CCR paper with additional details and information 
• In der Mitte liegt die Kraft - Chinas Farben- und Lackmarkt (Farbe und Lack 07/2016, in German)
  Why the mid-market is the most interesting segment of China´s coatings market 
• Chemical Distribution in China (CheManager Distribution & Logistics 01/2016)
  A relatively immature and highly fragmented market with huge growth potential 
• Electric Vehicles as An Opportunity for the Chinese Chemical Industry (CCR 2016)

A rise of electric vehicles pushes some chemical segments but may also hurt selected others. Read about it.

• The Chinese and European Coatings Market (ECJ 2016)
  With some words on the potential for cooperation 
• Der chinesische und westeuropäische Lackmarkt (in German, Farbe und Lack 2016)
  English version to follow soon. 
• China´s Mid-Level Coatings Market (CCR 2016)
  The elusive mid market, here with a few more details than just the usual conceptual overview 
• Challenges and Opportunities in Agrochemicals in China (CCR 2015)
  Indeed I wish the headline was phrased somewhat more interestingly, but it describes the content well 
• Specialty chemicals in China
  What topic do you expect with this title? 
• eBusiness and Chemical Distribution: Disintermediation 2.0? (CCR 2015)
  The end of chemical distribution as we know it? Probably not, but not a smooth ride either 
• Coatings in China: Present and Future (CheManager International 2015)
  A paper starting 7000 years ago in history but then quickly moving to the current market situation.
• Custom Synthesis for Pharma and Agrochemical Companies (China Chemical Reporter 2014)
  Written with an industry expert - information on market size, trends and success factors.
• Coal Chemicals: A Preliminary Evaluation (China Chemical Reporter 2014)
  The good, the bad and the conclusion: a viewpoint on coal chemicals.
• Water treatment in China (China Chemical Reporter 2012)
  A growing market with three distinct steps in the value chain ranging from chemicals production over formulation to services. Local companies are strong in the first while foreign companies dominate the latter. With company examples. 
• The Future of Fine Chemical Production - Chemical Production in Asia vs. the West (CheManager Europe 2012)
  In which the author argues that a large share of fine chemicals production will shift to Asia, and that this shift is already indicated by some recent acquisitions of Western fine chemicals producers by Asian companies.  
• Chemical Distribution in China (CheManager Europe 2012)
  The reason why no Chinese distributor is listed in the ICIS list of top 100 global distributors is not their small size. It is the lack of knowledge in the West. The article aims to improve this situation a bit. 
• Still Small: China's Bioplastics and Biodegradable Plastics Sector Relies on Beijing's Support (Business Forum China 2011)
  A discussion of the different bioplastics and their importance in China. The sector may benefit from growing environmental concerns in the country. 
• Catching Up: The Use of Engineering Plastics in China's Auto Applications Industry is Growing (Business Forum China 2011)
  China lags in the use of plastics in automotive - however, as the quality of local cars improves and fuel consumption becomes more important, this will change. Market opportunities for engineering plastics. 
• China Increases Self-sufficiency in Commodity Plastics (Business Forum China 2011)
  Chinese capacity of commodity plastics increases, however the variety of types is still low. 
• Specialty Chemicals in China (China Chemical Reporter 2011)
  The company landscape in specialty chemicals in China, and the surprising lack of strong Chinese players. 
• Winning Formula. There is a role for chemical makers in clean technology (Business Forum China 2010)
  Many non-chemical technologies that can create a cleaner environment rely on chemical innovation, whether it is alternative power generation, environmentally friendly coatings or water treatment.  
• Basic Chemicals in China - Different Issues for Multinationals and for Domestic Chemical Companies (China Chemical Reporter 2011)
  The puzzling combination of high existing capacities, low utilization and continuous capacity expansion, and some remedies. 
• Is Coal Chemistry Really the Future for China - An Opinion (China Chemical Reporter 2011)
  Expressing some doubts about this approach. Not only is it dirty, but also somewhat short-sighted as coal reserves in China are far from unlimited.  
• China should have a domestic specialty chemicals champion (China Chemical Reporter 2011)
  So far China´s companies are weak in specialty chemicals, leaving a large share of the market to multinational companies. What should Chinese players do to change this? 

 

General chemical industry topics (not China specific)

• Will BASF turn to pig farming?
  At least the title is catchy, isn`t it?
• Coronavirus and the Strategy of Global chemical companies
  Also available in German
• Digitalization facilitating the move of chemical companies into services
  The advantage of such a clumsy title is that it is self explanatory
• Challenges and Opportunities for the Global Chemical Industry
  The title of this paper got the prestigious "Most predictable title of a paper written by a management consultant" award 2015. We are so proud. 
• Shale Booms into Plastics Export Market. How much margin will US producers leave on the table?
  A discussion of the capability of US plastics producers to profit from international plastics sales.
• Countering Commoditization. The Aging of the Chemical Industry (CheManager International 2014)
  A discussion of the perennial problem of specialty chemicals companies. No silver bullets but a variety of individual measures to prevent or slow down commoditization 
• Classification of chemicals in the commercial area (Journal of Business Chemistry 2013)
  A somewhat theoretical attempt to bring some order into the messy variety of perspectives used to categorize chemical businesses. Sometimes some of us miss the days at the university ... With some practical advice as bonus.   
• Getting Innovation right. Overcoming obstacles to innovation in the chemical industry (CheManager Europe 2008)
  A comprehensive tool for innovation management.  
• Managing the effects of the business cycle in the chemical industry (Journal of Business Chemistry 2008)
  Theoretical causes of cyclical businesses, and tools for damage control.  
• Dienstleistungen als Geschäftschance für die chemische Industrie (CheManager 2008)
  In German, unfortunately. Services as a way to escape commoditization, raise margins and increase value chain participation - particularly suitable when the services provided are outside of the client core business activities. 
• Getting The Price Right. Value Pricing in the Chemical Industry (CheManager Europe 2008) 
  Value pricing offers potential for higher profits and more stable market position but is a challenge to implement. You have to know very well what your customers do with your products.  
• Wenn zyklische Geschäfte zum Problem werden. Wie Chemieunternehmen die Zyklizität ihres Geschäfts reduzieren können (CheManager 2007)
  A somewhat more applied paper covering management of cyclical chemical businesses. In German.  
• Conjoint Analysis: Decide on measures. Client requirements in the chemical industry (CheManager Europe 2007)
  Typically, conjoint analysis is used in consumer marketing but it also has its uses in the chemical industry, particularly to force customers to reliably prioritize their buying criteria. A similar paper is available in Chinese here (CPCIA 2008) 
• Entwicklung kreativer Marketingideen in Chemieunternehmen (Chemie und Wirtschaft 2007)
  On the use of selected creativity techniques to come up with new marketing ideas  
• Erfolgreiche Unternehmen der Spezialitätenchemie (CheManager 2003) 
  Half of the companies in this paper do not exist any more but some of the typology is still valid. In German.  
• Standortnachteile verschärft. Auswirkungen der EU-Stoffpolitik (CheManager 2003)
  A somewhat outdated paper on the consequences of REACH. In German. 
• Preisgestaltung in der chemischen Industrie (CheManager 2003)
  Operative and tactical tools to optimize pricing in the chemical industry. In German. 
• Participation Models in Specialty Chemicals (ADL Newsletter 2003)
  Typology of basic business models for specialty chemicals companies depending on their core focus and competency. 
• Herausforderungen für europäische Chemiedistributeure (CheManager 2002)
  Challenges to chemical distributors in Europe. In German.