Challenges and Countermeasures for high quality development of chemical industry in China
- Categories:Industry News
- Time of issue:2019-07-17 14:54
Challenges and Countermeasures for high quality development of chemical industry in China
- Categories:Industry News
- Time of issue:2019-07-17
At present, the drastic changes in the economic environment at home and abroad, especially the in-depth adjustment of the global petrochemical industry structure, have brought unprecedented challenges and opportunities to the development of China's petroleum and chemical industry. In the face of severe challenges, China's petroleum and chemical industry should actively recognize changes, calmly respond, actively seek changes, vigorously promote the supply side structural reform, meet opportunities in challenges, seek development in innovation, and walk out a new path of high-quality development of the industry under the new situation.
I. fully understand the new challenges faced by the high-quality development of China's petroleum and chemical industry
To realize the high-quality development of the whole industry is the development goal and arduous mission faced by China's petroleum and chemical industry. At the beginning of this year, we analyzed at the industry wide development conference that 2019 will be a year with many "uncertain" factors for development. Since this year, the actual situation of China's economic operation has proved that the "uncertain" factors currently facing are indeed increasing. Under the new background of high-quality macroeconomic development, the severe challenges faced by China's petroleum and chemical industry are mainly concentrated in four aspects:
First, the "uncertainty" of the international environment has increased. On May 10 this year, while the Chinese delegation was still negotiating with the United States, the United States brazenly imposed tariffs on China's $200 billion goods, firing the first shot in the Sino US trade war. Both China and the United States are world economic powers. The first shot means that the prelude to the trade war is officially opened, the escalation of trade friction will continue to heat up, and the time of the trade war will last for a long time. The Chinese government has stated on many occasions that China is unwilling to fight a trade war because there is no winner, but the United States insists on fighting. We don't have too many choices for the Sino US trade war. The key is to run our own affairs well. High quality development is the most powerful measure for us to deal with Sino US trade frictions. The Sino US trade war will have a great impact and great difficulties on the sustainable development of China's petrochemical industry, especially oil, natural gas, high-end synthetic materials and fine chemicals. However, we are convinced that the huge demand of China's domestic market, the huge choice space of the international trade market, and the strong regulatory measures of the Chinese government, especially the popular support of "unilateralism" and "trade protectionism", are fully prepared to deal with this trade war. We are full of confidence in the outcome of this trade war. We are not afraid of adversity, let alone intimidation. We will seriously do our own things. We have united as one. No matter how fierce the Sino US trade war is in the future, we firmly believe that the sun will rise every day, life will continue every day, and China's development will go East like a river every day!
Second, there are many "uncertainties" in safety and environmental protection. Since 2018, major safety accidents have occurred continuously in our industry, especially the "7.12" accident in Yibin, Sichuan, "11.28" accident in Zhangjiakou and "3.21" accident in Yancheng, which have caused huge losses to people's lives and property and had a great negative impact on the whole industry. In particular, the "3.21" accident in Yancheng occurred in Xiangshui chemical industry park. The measures taken by the local government to close the park have had a great impact on public opinion. Facing the current severe safety and environmental protection situation in the industry, on the one hand, we should face up to the problems and fully realize that in some chemical enterprises, the basic work of safety and environmental protection management is not in place, the safety and environmental protection supervision measures have not been fully implemented, and the essential safety measures of safety and environmental protection must be strengthened, too detailed and strong. On the other hand, we also firmly believe that chemical safety production can be prevented and controlled, and chemical safety accidents can be avoided and eliminated. This is also the safety management concept summarized by DuPont, BASF and other multinational companies in hundreds of years of development practice, and they have also established a set of effective HSE safety production management system in the industry. We should seriously study and learn from the experience of safety management of advanced countries and multinational corporations. We must exchange the lessons of blood for iron discipline and steel management, so as to raise the intrinsic safety of the whole industry to a new level. We must deeply realize that safety and environmental protection are the basic premise and basic guarantee of high-quality development. Every enterprise and chemical park should make due contributions to reversing the passive situation of safety and environmental protection in the whole industry.
Third, the restriction of innovation ability is still strong. High quality development requires that the petroleum and chemical industry must make a breakthrough in the commanding height technology, and it is precisely in the ability of technological innovation, especially in the commanding height technology that China's petroleum and chemical industry has many shortcomings. Although our industry has made a series of new breakthroughs in technological innovation and achieved a number of new achievements with significant impact since the 13th five year plan, from the technical analysis of the commanding height of industry development, we still have a large gap compared with chemical industry powers and multinational corporations, especially in the technology of direct chemical production from crude oil, direct chemical production from coal In terms of high-end and cutting-edge technologies such as direct production of ethylene from natural gas, propylene technology, CO2 utilization technology, photosynthesis technology, life science technology, new energy technology and high-end fine chemicals, there is still a big gap in the R & D level of Chinese enterprises, and we still have great deficiencies in the combination and breakthrough of basic research and applied research, In terms of management innovation, there are still many disadvantages and problems in our system and mechanism. Only when China's petroleum and chemical industry maintains the advantages of existing technological innovation, makes great efforts to make leading breakthroughs in commanding heights and technologies, and makes solid new progress in management innovation, can we promote the quality of development to a new level and accelerate the leap from a big country to a powerful country, Only then will it be possible to take the initiative to develop in the next 10 to 20 years.
Fourth, the gap in economic efficiency is still large. Economic efficiency is not only the fundamental symbol of high-quality development, but also the fundamental embodiment of the advanced level of productivity and production relations. There is still a big gap between us and multinational corporations in terms of economic benefits, economic efficiency, industry average level and individual level. Let me make a comparison based on the latest data in 2017: in 2017, the per capita income of China's petroleum and chemical industry was 328600 US dollars, and the per capita profit was only 20200 US dollars, while the per capita income of shell was 3713000 US dollars, and the per capita profit was 154000 US dollars; ExxonMobil's per capita income is US $3.432 million and per capita profit is US $277000; Mrs. Bath's average income is 654000 US dollars and her per capita profit is 62000 US dollars; Saudi Arabia's basic per capita income is US $1175000 and its per capita profit is US $145000. The gap in economic efficiency indicators fully reflects the gap in our management efficiency. This gap is not only a comprehensive gap, but also a fundamental gap.
Facing the four severe challenges faced by the high-quality development of the whole industry, especially the challenges of backward management system and mechanism and still large gap in economic efficiency, our supply chain management has huge innovation space and efficiency and benefit potential. In the whole capital chain management of the enterprise, raw material funds and finished product funds have considerable potential in the management of production working capital. The innovative management of supply chain, especially the management of modern supply chain, should give full play to the role of the first chain in the high-quality development of the whole industry, should become an important contributor to the improvement of economic benefits of enterprises, and should become an effective force to drive the high-quality development of the whole industry.
2、 Achieving high-quality development is a big battle for the transformation and upgrading of the whole industry
Facing the four challenges of high-quality development in the whole industry, on the basis of completing the implementation plan for adjusting structure, promoting transformation and increasing benefits in the first three years of the 13th five year plan, our whole industry must take the quasi pulse, highlight the key points, take the problem as the guidance, adopt new ideas and methods, and make efforts to increase effective supply, high-end supply and high-quality supply, Strive to explore a new path for high-quality development of the industry. This is a big and tough battle to climb a slope and overcome difficulties. We must show the courage and drive to climb the mountain and forge ahead bravely, stand at the forward-looking point of advanced strategy, walk at the commanding height of technological innovation, stand at the forefront of industrial structure adjustment, and take solid and effective measures with the courage to comprehensively deepen reform in strategy, technology, market, efficiency A number of high-level achievements with competitive advantages have been made in management and service. At present, the high-quality development of our industry must focus on five key directions:
First, technological innovation should break through the commanding heights. China's petroleum and chemical industry has leapt from a big country to a powerful country. The biggest weakness in high-quality development is its weak innovation ability. From the perspective of the overall level of industry development and the commanding height technology of industry development, we still have a large gap compared with chemical industry powers and multinational corporations, especially in terms of high-end and cutting-edge technologies, our R & D level is still far away, and we still have a large gap in the combination of basic research and applied research, In terms of management system and mechanism, we still have many difficulties and problems. Only when China's petroleum and chemical industry makes a leading breakthrough in the commanding height technology can our industry achieve new improvement in high-quality development and take the initiative in the next 10 to 20 years.
Historical experience shows that scientific and technological revolution can always profoundly change the development pattern of global petrochemical industry. It is impossible for the industry to develop without innovation, and it is impossible to always track and imitate innovation. In the new stage of high-quality development, it is necessary to take a new path of independent innovation and original innovation and make original breakthroughs at the commanding height. Among the top 100 global innovative enterprises in 2018-2019 recently selected by the internationally renowned consulting agency Kerui Weian, there are 15 chemical enterprises, all of which are enterprises from developed countries such as Japan, the United States, Germany and France, and none of them is selected in China. The R & D investment of multinational companies such as BASF, DuPont and Dow accounts for more than 3% of sales revenue, and some even more than 5%. However, the R & D investment of large enterprises in China is generally less than 1%, and the innovation gap is huge. To promote the supply side structural reform, we must put technological innovation at the core of enterprise strategy. Concentrate on overcoming a number of key core technologies and "neck" technologies, and seize a number of commanding heights of science and technology strategies related to the long-term and overall situation. We should seize the major opportunity of the new round of scientific and technological revolution, aim at the world's scientific and technological frontier, vigorously support the original innovation from 0 to 1, overcome a number of world-class technical problems, achieve subversive scientific and technological achievements, strive to achieve leapfrog development in important fields, and accelerate the transformation from "following" to "running side by side" and even "leading".
Second, the industrial structure should be extended at the high end of the industrial chain. Traditional industries such as raw material mining and processing and basic chemical manufacturing account for a large proportion in China's petrochemical industry, while high-end chemical manufacturing and strategic emerging industries account for less than 10%. The industry is still at the middle and low end of the industrial chain and value chain. Accelerating the high-end process of industrial structure, promoting the extension of industrial structure at the high end of the industrial chain and cultivating strategic emerging industrial clusters are the urgent tasks facing the whole industry to achieve high-quality development.
We should focus on limited objectives and limited forces, and strive to develop new energy, new chemical materials and high-end special chemicals industries with comparative advantages. In particular, we should accelerate the development of new chemical materials such as high-end polyolefins, special resins, special engineering plastics and high-end membrane materials, special chemicals such as functional materials, medical chemical materials and high-end electronic chemicals, as well as special chemicals such as catalysts and special additives (additives), Strive to improve the high-end supply capacity of the industrial chain.
We should continue to strengthen the elimination of backward production capacity that fails to meet safety and environmental protection standards, accelerate the clearance of backward production capacity, and promote the survival of the fittest. We should strictly control the new low-end production capacity, use the combination of "de capacity" and "making up for weaknesses", constantly improve the competitive advantage of traditional industries, and guard against and curb the impulse of repeated construction, especially high-level repeated construction. We should focus on strengthening the capacity monitoring of oil refining, chemical fertilizers, chlor alkali and some key chemicals, and do a good job in the early warning of overcapacity. We will thoroughly and carefully carry out the relocation and transformation of hazardous chemical production enterprises, promote the relocation of hazardous chemical enterprises into the park, seriously solve various problems existing in the process of enterprise relocation, and promote the scientific layout of the chemical park. Guide the circular development of enterprises in the park, dislocation coupling development between parks, form scale and intensive effect in the park, and form a new model of characteristic development and cluster development.
Third, the development mode should make efforts in green chemistry. Green chemistry is another new realm in the development of chemical industry. It includes new chemical reaction process research, green energy-saving transformation of traditional chemical process, clean utilization technology of traditional energy, green biochemical technology of resource regeneration and comprehensive utilization, etc. Green development is not only an important part of the optimization and upgrading of industrial structure, but also an important means to promote high-quality development, but also a major change in the development mode of the industry. Promoting green development will inevitably promote the transformation of the industry from extensive development with high investment, high emission and low efficiency to two wheel drive mode of innovative development and green development. The chemical industry has the ability to change the properties of substances from the molecular structure. Green development must be at the forefront of the whole industrial sector. The whole industry must further enhance its sense of urgency, mission and responsibility, strive to do a good job in green development, and realize the harmonious and inclusive development of the industry and society.
We should fight a tough battle against key pollution prevention and control with high standards. Continue to focus on key industries and key products, comprehensively promote the construction of green standardization system, vigorously promote the technological transformation of cleaner production in traditional industries, promote energy-saving, low-carbon and water-saving technologies, and optimize the raw material structure and product structure. We will further promote the treatment of waste salt, waste acid and VOC and solve prominent environmental problems.
We should accelerate the recycling transformation of the chemical industry park, cultivate a number of cleaner production demonstration enterprises, create a number of green development demonstration parks, accelerate the establishment of a recycling full life cycle green industrial chain, realize resource efficiency, recycling and "zero emission" of waste, and improve the green development level of the Park. We should earnestly strengthen the professional level of safety management in the chemical park, strengthen daily supervision, improve the emergency response ability, and raise the intrinsic safety management of the chemical park to a new level in the high-quality development.
We should further promote responsible care, expand corporate social responsibility from within the corporate wall to outside the corporate wall, constantly improve the level of process safety, occupational health, product safety supervision, storage and transportation safety and pollution prevention, create a number of green products, green factories and green development demonstration parks, and fundamentally improve and enhance the development image of petrochemical industry.
Fourth, resource allocation should be optimized in the global market. Whether an enterprise is strong or not depends not only on the scale of domestic assets and sales revenue, but also on whether it really has the ability to allocate resources globally. To accelerate the high-quality development of the industry and continuously improve the core competitiveness of enterprises is to optimize the global resource allocation and cultivate a number of multinational enterprises and enterprise groups with international influence through global resource allocation, business process reengineering, industrial chain integration and capital market operation.
We should actively "go global" to carry out capacity cooperation, select key industries, focus on the development direction of enterprises, and practically promote the construction of overseas agglomeration areas and the implementation of projects. In particular, one belt, one road, and the other countries should be strengthened to give full play to their respective advantages in resources, capital, technology, market, talent and management. They should set up procurement centers, manufacturing centers, R & D centers, financial settlement centers and marketing service centers in the most suitable locations, and optimize global supply chain management through integrating global value chains. It is deeply embedded in the global production and marketing network to realize the global efficient allocation of resources and the orderly flow of production factors. In today's global economic integration, any successful enterprise is inseparable from Global trade, global resource sharing and flow, and our petroleum and chemical enterprises are no exception.
Fifth, economic efficiency should take the lead in international benchmarking. As a main body of market competition, the focus of competition is mainly reflected in enterprise efficiency. The advantage of enterprise efficiency competition is the result of the joint action of enterprise technological innovation advantage, management innovation advantage and business model innovation advantage. It is the ultimate reflection of an enterprise's overall competitiveness. At present, there is still a big gap between our industrial efficiency and enterprise efficiency compared with developed countries and multinational corporations. Industry enterprises should take a global perspective, do a good job in benchmarking important indicators, constantly enhance their strategic management and strategic decision-making ability, and further enhance the core competitiveness of enterprises.
We should pay attention to the excellent organization and optimal product combination of enterprises. We should attach great importance to the organic growth of the internal business of the enterprise, significantly simplify the organizational structure and business processes, optimize the product portfolio, give full play to the efficient operation of the value chain in the integration, realize highly centralized management, high efficiency, high efficiency and high-level operation, and cultivate a number of leading enterprises.
We should pay attention to the profitability and return on capital of enterprises. The profitability and capital return level of an enterprise are not only the concentrated embodiment of the overall competitive advantage of the enterprise, but also an important basis for the sustainable development of the enterprise. We should pay close attention to the sales revenue, profit margin and working capital turnover rate of enterprises. All staff labor productivity, total factor productivity and other major economic benefit indicators, focus on the gap with developed countries and multinational enterprises, consolidate the foundation of enterprise development and enhance the profitability of enterprises.
We should pay attention to the supply chain management of enterprises. Through unremitting efforts, the supply chain construction of China's petrochemical industry has made some progress. First, the supply chain management level of petrochemical enterprises has been continuously improved. The new pattern of integration of "upstream and downstream, production, supply and marketing, domestic and foreign trade" has initially taken shape, and a number of enterprises with excellent supply chain management, such as Sinopec, Wanhua chemical, Jiangsu Linggu, etc., have emerged. Second, a large number of service providers and suppliers have grown rapidly, making important contributions to the upgrading and optimization of the supply chain of the petrochemical industry. A large number of supporting service providers and suppliers in the petrochemical field, represented by China Tianchen, China Huanqiu contracting & Engineering Corporation, Sinopec Refining & Chemical Engineering Corporation, Wison Engineering Corporation, Shengu group, Wolong group, Sinochem International and China Railway Tielong, have continuously enhanced their supporting capacity through technological innovation and management innovation, and have established close cooperative relations with petrochemical enterprises in engineering design, equipment manufacturing Warehousing, logistics and information services have played a positive role and become an important bright spot in the supply chain of the petrochemical industry.
We should clearly realize that promoting the high-quality development of the industry is an overall strategy, a systematic project and the overall action of our industry. We must firmly and steadily promote the high-quality development of the whole industry with an overall strategic vision, pragmatic concrete measures and coordinated reform methods.
3、 Actively explore the reform, innovation, transformation and upgrading of strategic procurement and modern supply chain management
This year, the central economic work conference pointed out that "we should enhance the vitality of micro subjects, give full play to the subjective initiative of enterprises and entrepreneurs, establish fair, open and transparent market rules and a legal business environment, promote positive incentives and the survival of the fittest, and develop more high-quality enterprises." there are a large number of petrochemical enterprises in China, but few enterprises with strong international competitiveness. Not long ago, brand finance, a British brand evaluation agency, released the "top ten most valuable chemical brands in the world in 2019". BASF of Germany, Dow of the United States and Saudi basic industries ranked among the top three, followed by LG Chemical of South Korea, DuPont of the United States, leandre Bassel of the United States, liquid air of France, Mitsubishi Chemical of Japan, Praxair of the United States and Asahi chemical of Japan. None of the Chinese chemical brands was on the list. Brand is the embodiment of core competitiveness. This shows that the strength of our enterprise is not enough, and there is still a gap in core competitiveness. Therefore, it has become an important goal to promote the high-quality development of the industry to enhance the vitality of the micro main body of enterprises, enhance the core competitiveness of enterprises and cultivate a number of leading enterprises with international competitiveness.
The vitality and competitiveness of micro subjects are directly related to the quality and level of industry development. In the process of leaping to a powerful country, the lack of vitality and competitiveness of enterprises has always been a key weakness in the development of the industry. Taking the data of 2017 as an example, the average sales profit margin of our industry is only 6.14%, the per capita profit of the industry is only 132000 yuan, and the number of annual working capital turnover is only 2.61 times. Compared with multinational corporations, the economic efficiency and economic efficiency indicators of large enterprises have a greater gap.
In the gap between the operating efficiency and operating efficiency of the industry, we are soberly aware of the great potential of supply chain management in our industry, not only potential, but also insight. At present, the procurement and supply chain management of the vast majority of enterprises in our industry are basically traditional ideas, traditional methods and traditional models. As long as we make bold innovations in the supply chain management system, mechanism and methods, our whole industry can get a number of considerable economic benefits. Mr. Wang Yongqing once said: "the management of Formosa Plastics is to screw out three drops of water on a dry towel". The supply chain management of many of our enterprises is a wet towel. As long as you pinch it with your hand, you can squeeze out 30 drops of water. It is imperative to innovate and reform the supply chain of our industry. In the process of high-quality development of the whole industry, supply chain management and innovation must be placed in the position of the first chain. Strategic procurement and modern supply chain management have profound changes and significant differences from traditional procurement and supply chain management.
First, we should completely change the traditional thinking of current procurement and supply chain management and establish a new concept of strategic procurement and modern supply chain. In the traditional enterprise management, the enterprise strategic decision-making is basically carried out around the technology, production and financial departments, and most procurement departments are outside the scope of strategic decision-making. With the development of market economy and the change of enterprise scale, procurement and supply chain management have risen to become a department with strategic status, but now many enterprises do not realize this. Research by some institutions shows that the sales investment of the chemical industry in developed countries has accounted for more than 60% of the total investment of the industry. Procurement has become an important source of sustainable competitiveness of enterprises. Whether in short-term competition or long-term competition, enterprise procurement plays an important strategic role in establishing and maintaining competitive advantage. Today's enterprise leaders, if they do not realize this, the backwardness of enterprises is inevitable.
Second, we should establish an efficient and stable strategic procurement and modern supply chain network to realize the significant transformation from procurement cost to procurement value management. Traditional procurement and supply chain management mainly focus on cost management, while modern procurement and supply chain management mainly focus on value management. The core of value management is the management of supplier relationship and the establishment of high-quality and reliable supplier management system, which is an important symbol of the maturity of strategic procurement and modern supply chain management. Establishing an efficient and stable supplier management system, building a competitive supplier management framework, improving the scientific method of supplier change and adjustment, and implementing a dynamic supplier service evaluation system are another embodiment of the level of strategic procurement and modern supply chain management.
Third, information technology has completely changed the operation mode of procurement and supply chain. Globalization has higher and higher requirements for efficient operation and risk prevention and control of procurement and supply chain. The rapid development of electronic information technology is rapidly changing the operation mode of enterprise procurement and supply chain. Especially with the deepening of globalization, the transfer of manufacturing industry to "low-cost countries" and the promotion of container transportation revolution, global procurement has become an irreversible trend. While the "focus" of the supply chain is shifting, the requirements for efficiency, flexibility and risk prevention and control are becoming higher and higher, the dependence of procurement and supply chain on information technology is becoming stronger and stronger, and the challenge of preventing supply chain management loopholes is becoming greater and greater. The personnel quality of enterprise strategic procurement and supply chain management team must quickly adapt to and catch up with the changing trend of this trend. Fourth, facing the future of high-quality development and sustainable development, we must fully explore the innovation of strategic procurement and modern supply chain management under the trend of globalization. In order to achieve sustainable procurement and supply chain management in the future, UN Secretary General Kofi Annan invited business leaders to jointly launch an international initiative in 2000 - put forward 10 principles of the "global contract", that is, it is required that future sustainable development must focus on the "triple bottom line" of economy, society and environmental protection, which means the management of procurement and supply chain in the future, We must constantly innovate in strategic decision-making, contract standard operation, supplier relationship management, procurement methods, quality, efficiency, safety and cost. Only by constantly exploring the innovation of strategic procurement and modern supply chain management under the trend of globalization can Chinese petroleum and chemical enterprises realize their competitive advantage and sustainable development in the future. Practice tells us that there can be no future without recognizing the future!
At this meeting, I hope you can get rid of the traditional thinking of procurement and supply chain management, fully understand the position and role of procurement and supply chain management in high-quality development, and inspire you to have some in-depth thinking and bold innovation on strategic procurement and modern supply chain management.
2019 is a turning point for the transformation and development of China's petroleum and chemical industry into a new stage and the starting year of high-quality development of the whole industry. Continuously improving the modern supply chain system and system construction of China's petroleum and chemical industry and further improving the overall efficiency and benefit level of enterprise supply chain are the preconditions and important links to realize the high-quality development of China's petroleum and chemical industry and the leap from a large petroleum and chemical country to a powerful country. Let's seize the current rare strategic opportunity, emancipate our minds, innovate boldly, comprehensively improve the supply chain management level of China's petroleum and chemical enterprises, and make new and greater contributions to the high-quality development of the whole industry and the leap from a large petrochemical country to a powerful country.
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