Chinese fine chemical raw materials and intermediates has great potential

Thanks to the huge market demand, cheap labor resources and relatively relaxed environmental restrictions. The country’s fine chemical industry has a strong anti-risk ability, even in competition with the traditional chemical giant, it is also possible for them to win. Now, many large pharmaceutical companies increase procurement in China and India share. In the foreseeable future, except for a few high-techs, easy on the R & D products, most other intermediates, bulk drugs and some drug product will be transferred to production in China and India, and European and American manufacturers will only be responsible for R & D and product the final finishing.China and India are in fine chemical industry, mainly small businesses, relatively low manufacturing costs, product packaging and appearance are not standard, low-cost, low-profit seeking survival and development. Relative to India, China complete range of fine chemical industry, the availability of sufficient resources Copper Chromite(CC), more suitable for small investors to enter the market, and India more attention to drug development, they can usually be needed for the production of their own API.China and India’s increasingly prominent positions in the fine chemicals markets intensified international competition within the industry, forcing the European and American fine chemicals company re-evaluate their strategy and adopt a more realistic attitude and strategy. One is from China and India, the procurement of basic intermediates, it can not only reduce raw material costs, it can save production space and equipment investment; second is direct investment in factories in China or India, or cooperation with local chemical companies; Finally, there is the entire device is moved to China and India, but the R & D and product finishing to stay in their local. For the fine chemical industry, this process has only just begun. In the next few decades, the market will gradually become to Asia, the Indian-based production and supply of basic organic intermediates (including API) situation.Through 20 years opening-up policy, China has formed the basis of scale organic chemicals for the production of intermediates and lays a good foundation. Now, olefins, amines, halogenated benzene and other products have achieved world-scale production, the cost is not high, intermediate Chinese industry's capacity to achieve the required scale. Therefore, Chinese enterprises to lower costs coupled with the sale of low-cost, low demand reasonable profit, to adapt to a number of international conventions, in market access, the Chinese companies that have done relatively easily.Pharmaceuticals, agrochemicals, dyes, polymers and other rapidly growing demand, boosting the intermediates and fine chemical industry, market growth, and because international buyers to join the Chinese enterprises according to customer demand for production technology and equipment also been improved, boosting productivity and product quality, but also to strengthen the environmental, health and safety in three areas of investment, corporate image and competitiveness of products and a significant increase.However, the specialists believe that once the environmental costs are lower, the production costs will become the lower. Fine chemicals producing by the developed countries due to the higher proportion of environmental costs, and thus stop or reduce the production of fine chemicals and turn to purchase from the developing countries. The developing countries transfer the triphenyl bismuth production of fine chemicals to regions with low environmental requirements, whether foreign companies or Chinese companies do like this, it is right and understandable, because these are in line with the best interests of the company to pursue the subject, but the local government and environmental institutions should be standing long-term interests, from the perspective of sustainable development to support increased enforcement of environmental protection, as any expense of the environment, harm the interests of future generations are not in exchange for long-term economic prosperity.  Source:http://www.mhcfm.com