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Shandong is a major producer of chemical fertilizers in the country. In recent years, chemical fertilizer production capacity has been growing at a double-digit rate. By 2008, the output of synthetic ammonia has reached 7.286 million tons. While satisfying agricultural production, overcapacity is gradually emerging. In order to reverse the surplus situation and make the company enter the track of sound development, in 2009, the province issued the “Guidelines for the Adjustment and Rejuvenation of the Chemical Fertilizer Industry in Shandong Province†and proposed to adhere to the new industrialization path, relying on existing enterprises, strictly controlling the total production capacity, and highlighting Technological innovation and technological progress have led to a comprehensive upgrade of the industry. This measure saw the effect in the year. In 2009, the growth rate of ammonia production in the province fell to 6.56%, which was far below the national average growth rate. In 2010, the first time there was a negative growth in ammonia and urea production. From January to November last year, Shandong Province produced a total of 6.143 million tons of synthetic ammonia, which was a year-on-year decrease of 1.2%. It produced 8.7207 million tons of urea, which was a decrease of 2.51% year-on-year. The production of ammonium phosphate was 349,000 tons, a year-on-year decrease of 1.83%.
Under the baptism of the market, some enterprises with no development advantages, including Zhucheng Liangfeng Company and Weifang Venus Company, 2 urea companies, Yantai Jinhai Company, Rizhao Fumin Company, and Yinxian Yinfeng Company withdrew from the fertilizer industry. . There is also a group of backward production capacity that has been eliminated. Some of the older production lines with large energy consumption that were built earlier in large-scale enterprises, such as the fixed-bed gas synthesis ammonia plant of the First Nitrogen Fertilizer Plant of the Yanzhou Lunan Fertilizer Plant and the first-phase ammonia plant of the first branch of the Sinochem Plain, were shut down in 2010. Sinochem Plain's five old hydrogen and nitrogen compressors were also included in the 2011 elimination list.
At the same time, Shandong fertilizer companies explored ways to combine product operations and capital operations to start mergers and reorganizations. Shouguang Union Company, Mingshui Dahua Company, and Zhangqiu Sunyue Company were merged into Shanxi Jinmei Group, Qilu Chemical Company, Laiyang Juli Company, Qingdao Hengyuan Company, and Hengtong Chemical Company entered Shanxi Yangmei Coal Group. The issue of coal restrictions has been solved. Mingshui Dahua Company merged with Tengzhou Ruida Company, Ningyang Feida Company, Wendeng Hengsheng Company, and Rucheng Lufa Company 4 fertilizer companies, and Zhangqiu Sunyue Company entered the main company of Ningjin Yongxing Company. Lead ties are further strengthened.
Some companies used the capital market to accelerate the pace of development. Following Hua Lu Hengsheng, Luxi Chemical, and joint chemical companies, in September 2010, Kim Jong-ta was also successfully listed. In December 2010, Hualu Hengsheng raised 1.85 billion yuan through a private placement. The application for the refinancing of Luxi Chemical has also been approved by the China Securities Regulatory Commission and is being implemented in an orderly manner.
"This kind of integration will continue, and the movement will be even greater," said a business person. At the Shandong Provincial Chemical Fertilizer Working Conference, Yang Chunsheng, vice chairman of the China Nitrogen Fertilizer Industry Association and president of the Chemical Fertilizer Industry Association of Shandong Province, said that in the next few years, chemical fertilizer companies in Shandong Province will continue to accelerate the pace of adjustment and do a good job in chemical fertilizer industry clusters and park construction. The phase-out of ammonia plants below 80,000 tons will be eliminated resolutely for synthetic ammonia plants with aging process equipment, high energy consumption, serious pollution, and hidden safety concerns.
According to reports, during the “Twelfth Five-Year Plan†period, the number of nitrogen fertilizer companies in Shandong Province will be further reduced to about 30; the total nitrogen and phosphate fertilizer production capacity will be strictly controlled, and 8 to 10 production capacities with over one million tons will be cultivated. The capacity of single-series installations will reach the level of large-scale enterprises. The backbone enterprise group. In the next five years, the energy consumption of Shandong fertilizer products, the “three wastes†treatment, and the recycling of wastes must all maintain the leading position in China. The energy consumption of key enterprises must reach the international advanced level.
Advantageous enterprises are seriously planning their own future. The company stated that in order to further consolidate its competitive advantages, it must speed up the transformation of its nitrogen fertilizer production raw materials and reduce its dependence on anthracite. At the same time, properly develop the downstream products of the coal chemical industry, strive to extend to the high-end and refinement, and increase the added value of the products. For example, some companies are considering the production of ethylene oxide, propylene oxide, butyl octyl alcohol, acrylonitrile and other products starting from synthetic ammonia and methanol, and exploring the development of refined coal chemical products. There are also some companies that focus on accelerating the development of new types of fertilizers and guiding farmers to scientific fertilization.
Shandong fertilizer enterprises "decrease weight gain"
A few days ago, it was learned from the Shandong Provincial Chemical Fertilizer Working Conference that in 2010, the pace of mergers and reorganizations of Shandong chemical fertilizer companies was significantly accelerated. At the same time as the number of enterprises was reduced, the “weight†of advantageous enterprises became larger and their strength increased. The number of nitrogen fertiliser enterprises in the province has decreased from 49 in 2009 to 44 at present, and the ammonia capacity of the seven enterprise groups exceeds 500,000 tons respectively. Among the 44 nitrogen fertilizer companies, the total capacity of ammonia in the top 10 companies has reached 6.31 million tons. It accounted for 68.7% of the total production capacity of 9.18 million tons in the province.