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China Daily Website

ChemChina head urges new thinking for the sector

Updated: 2013-11-22 07:51
By Du Juan ( China Daily)

"The leading companies in the industry should actively participate in solving the problem through mergers and acquisitions," said Ren.

"China's chemical industry has an overcapacity problem not because of obsolete technology but because companies duplicate each other's projects."

Chinese chemical companies have better technology and management techniques than many other places such as Africa, India and Russia, he said.

"The leading companies can make use of their distribution channels in the international market to integrate domestic and overseas resources to help the industry digest its surplus.

"Forming asset management firms for the chemical industry can also offer a way out," said Ren.

Ren said that he respects the rule of the market, which will ultimately sort out the overcapacity issue.

But ultimately, companies need to stop thinking solely in terms of market share and find ways to innovate, he added.

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