Achemasia 98

Prof. Dr. Gerhard Kreysa

Achemasia, “daughter” of the Achema in China, has been organised by Dechema (Deutsche Gesellschaft für Chemisches Apparatewesen, Chemische Technik und Biotechnologie e.V.), in close collaboration with its Chinese sister society CIESC (Chemical Industry and Engineering Society of China) since 1989. The event is actively supported by the Chinese Ministry for the Chemical Industry, the Ministry for the Machinery Industry and around 20 other high-ranking technical organisations from Asia and all over the world.

Following the very successful third Achemasia in 1995, with 453 exhibitors from 23 countries and growth rates of 80% compared with 1992, all the signs now point to stability, continuity and success. Once again the largest participant will be Germany, with 165 exhibitors. Around 140 Chinese exhibitors will be taking part, followed by the USA (21), the United Kingdom (17), Switzerland (15) and France (14) (figures for February 1998). Around 20,000 visitors from the largest growth region in Asia will make use of this event to exchange information and experience concerning technological know-how and to establish new contacts.

Achemasia 98 will take place in the middle of the ninth Five-Year Plan of the People’s Republic of China, which focuses on the development of the chemical processing industry, the petrochemical industry, plant construction, environmental protection technology and the modernisation of the pharmaceutical industry. The exhibition profile of Achemasia is concentrated on precisely these target groups and related fields. It will open up new possibilities for cooperation in technology and science as well as opportunities to penetrate the market.

The accompanying Achemasia conference will be one of the week’s highlights, and will focus on an exchange of experience and know-how. More than 100 international speakers will present the latest developments in chemical engineering science and technology. Supplementary technical seminars will deal with new developments in products and applications and offer opportunities to make new contacts, especially for small and medium-sized companies. A “Symposium on Natural Products” and a two-day symposium on “Industrial and Municipal Waste Management” will be organised as a part of the conference, to bring specialists from all over the world together with Chinese and Asian-Pacific experts.

“Anyone who wants to operate globally must go to China!” This was the key statement of the 3rd Sino-German economic congress held late last year in Munich. Asia today is one of the most important growth regions in the world. Out of all the countries in eastern Asia, it is China, with the largest population in the world and a constant growth rate of around 10%, that has assumed the key role. Even against the background of the current upheaval in Asian currencies, China has opted for stability. It has the largest currency reserves worldwide, and the decline in the inflation rate of its currency from 23% (1994) to 15% (1995) and 8% (1996) and now to 5% for 1997 (estimated) points to stability. This is why Chine has come to occupy a central position in the globalisation strategies of all Western companies.

With the economic opening-up of the last few years the underlying conditions for foreign investors have improved dramatically. Since 1993 China has been the second largest target for direct investments. The chemical sector alone has attracted foreign investments of more than nine billion US dollars in the last 10 years and China is still the focus of chemical suppliers today.

Overall, capital spending in the chemical industry will total more than US$ 32 billion during the Ninth Plan, of which some US$ 10 billion will go towards new grassroots projects and another US$ 10 billion towards upgrading and modernising plants and equipment. The chemical industry will also “open wider to the outside world”, the goal being to attract US$ 12 billion in overseas capital by 2000, about 20% more than was targeted in 1996, says Gu Xiulian, the Minister for the Chemical Industry (MCI). She says that China has already approved 5,500 foreign-funded chemical ventures and signed long-term cooperation contracts with nearly two dozen multinational firms.

As recently as February, for example, China made three further major announcements. Firstly, at last February´s World Economic Forum in Davos, Switzerland, Chinese vice premier Li Lanqing stated that the country would spend US$ 750 billion (Rmb 6.2 trillion) over the next three years on upgrading its infrastructure and industry. The government´s goals for the massive spending program are to kickstart its industry, stimulate domestic demand, keep exports on track and help insulate China from Asia´s economic slow-down.

A week later, the government approved a US$ 4.5 billion petrochemical complex, the largest foreign-funded joint venture in China (Shell). This go-ahead means that the Chinese government´s stance toward foreign investments in such core projects is becoming more flexible, and improves the prospects of another dozen or so equally major CPI projects being given the green light.

Next, China unveiled plans for a US$ 50 billion attack on acid rain, which has already polluted 30% of China’s landmass and caused damage in Korea and Japan. The State Council has approved this plan to control sulphur dioxide emissions and ease up the growth of acid rain areas by 2000. The project will focus on 1.09 million km2.

Which companies should feel that the time is right for a commitment to the Chinese market? Which risks will they face? Is a partner or representative sufficient? Is a joint venture less complicated than founding your own company? Questions with different answers and different recipes for success, depending on the branch of industry concerned. Exhibitors at and visitors to Achemasia ’98 will have numerous opportunities to make contacts and put out feelers for possible collaboration with Chinese partners.

In addition to Asia’s high growth rate, the need to secure sales markets is another factor influencing the investment decisions of the German and international chemical industry and plant engineers. Production facilities based in Asia also have the important effect of acting as catalysts for exports.

Indeed, China’s chemicals market is currently growing at a rate of 8% per year and, in the opinion of experts, will have tripled in volume by the year 2010. There are already signs today that China and other Asian countries will soon become major exporting nations in certain fields. The proportion of the world fibre market accounted for by South, East and South-East Asia is expected to reach around 56% by 2010. Plastics production is growing at an annual rate of 8% and an enormous expansion of existing capacity is in the pipeline. According to forecasts, Asia’s chemicals market (excluding Japan) will be worth somewhere in the region of US$ 520 billion by 2010. The USA would then lose its rank of second in the world to Asia, and Europe would hold onto the number one position by only a very slim margin.

As the economic and scientific sectors be-come increasingly globalised, it is absolutely essential to have rapid and selective access to high-quality specialist information, wherever one happens to be in the world. Achemasia is one of several important events which will promote the forging of new relationships and bring together experts from all over the world. However, there are two further innovations which are also likely to significantly increase the exchange of information, new technologies and expertise. As of January 1998, all Achemasia 98 exhibitors, their company profiles, products and technologies will be featured on the World Wide Web at http://www.achemasia.de and http://www.dechema.de.

Even more information will be available in the third edition of the World Catalogue of International Chemical Equipment (WOICE of Achema) on CD-ROM, which will appear in time for Achemasia. It will contain up-to-date information on more than 4,300 companies and institutions from all over the world. In addition to information on companies, technical reports, new developments and services it will also include advertisements for co-operative projects, license deals and requests. All information is available in German, English, French and Spanish. For decision-makers and technical specialists in China and around the globe, this easily accessible electronic medium will provide a comprehensive overview of technologies, companies and contacts worldwide.

Dechema e.V,

Fax ++49 69 7564 201

Further information cpp 234