· 18,440 professionals participated – high standard of discussions and contacts

· Excellent opportunities for international chemical equipment manufacturers and process engineering

China’s economy is booming and it offers outstanding opportunities for equipment manufacturers, plant engineers and technology suppliers in the chemical process industry worldwide. This was the unanimous verdict of exhibitors and visitors at ACHEMASIA 2004 International Exhibition&Congress on Chemical Engineering and Biotechnology, which took place for the sixth time from 11 to 15 May 2004 in Beijing/PR China.

Optimism, high quality and excellent contacts were the hallmarks of this 6th ACHEMASIA which further consolidated its position since the first event in 1989 as Asia’s most comprehensive event for the chemical process industries. ACHEMASIA’s exhibition profile targeted the main priorities of the Chinese economy, particularly in the sectors of the chemical and petrochemical industries, pharmaceutical production technology, food technology, biotechnology and environmental protection.

In four booked out halls with 6,396 square metres of net exhibition space 414 exhibitors from 25 different countries and regions displayed investment goods and new developments for the fields of chemical equipment and plant engineering (41 %), process engineering (33 %), petrochemistry (25 %), pharmaceutical production technology (23 %), food technology (18 %), environmental technology (15 %), biotechnology (15 %), laboratory and analytical techniques (13 %), water technologies (11 %) and agrochemistry (10 %). For the first time demand for stand space exceeded capacity, thus additional hall space is required for ACHEMASIA 2007.

The exhibitors commended the organization of this event, the high number and professionalism of the visitors, the many good contacts and fruitful discussions. The total of 18,440 visitors included numerous decision-makers from Chinese industry, design institutes and large concerns, such as Sinopec, and a large number of managers and CEOs of foreign companies from 25 different countries and regions; almost 10% of all attendees were from abroad The visitors were impressed by the presentations and the excellent networking opportunities at ACHEMASIA 2004.

The largest contingent of exhibitors at ACHEMASIA 2004 came from China with a total of 167; of these over one third represented subsidiaries and joint ventures of international companies. The second largest group came from Germany with 134 exhibitors, followed by Australia (17 exhibitors), Great Britain (15 exhibitors), France (14 exhibitors), USA (12 exhibitors), and Switzerland (10 exhibitors). The number of Chinese exhibitors increased by 44 % over 2001, that of international companies by 20%.

Prof. Gerhard Kreysa, chief executive of DECHEMA, the organizer, described the quality of the presentations of Chinese companies as a quantum leap. The organization of the event had received gratifying accolades.

The new concept for the ACHEMASIA Congress with business meetings, scientific lectures and presentations by exhibitors proved highly popular. Approximately 3,000 professionals attended these events. This 40% rise over 2001 proves that there is a high demand for an international exchange of ideas and experience on cutting-edge technologies and cooperations. The number of exhibitors and congress visitors clearly reflected the macroeconomic development of China which is characterized by steady growth of the private sector.

What counts particularly for first-time exhibitors at ACHEMASIA and newcomers to the Asian market is the fact that over 80% of the visitors at ACHEMASIA 2004 were motivated by information provided by the organizers, DECHEMA (Society for Chemical Engineering and Biotechnology, Frankfurt am Main) and CIESC (Chemical Industry and Engineering Society of China). Around 20% of the visitors were contacts and clients of the exhibitors. A mailing of 50,000 pre-catalogues to influential institutions and companies in the southeast Asian region and numerous advertising campaigns and cooperations with several international journals had made ACHEMASIA 2004 known to experts from the field as a vital exhibition for equipment goods of the chemical process industries.

State reception at ACHEMASIA 2004 – a symbol of the host country’s high esteem
The significance of ACHEMASIA for China’s economy was underscored by a reception in the Great Hall of the People, to which a representative delegation of ACHEMASIA exhibitors had been invited. In a conversation with Dr. Alfred Oberholz, Chairman of DECHEMA and member of the Board of Management of Degussa AG, Madame Gu, Vice-Chairman of the Standing Committee of the National People's Congress, stressed the fact that China seeks economic cooperation with the world's leading technology providers.

Madame Gu stated that chemistry plays a vital role in all industrial sectors of her country, which is why it is a priority area for development as one of China’s basic technologies. With respect to new projects, China attaches the utmost importance to sustainable development, new technologies, the economic use of resources, environmental protection and the corresponding international know-how and partnerships. She considered cooperation with the companies and countries represented by the exhibitors at ACHEMASIA to be of paramount interest. There were meanwhile sufficient examples to show that the steadily increasing opportunities that were opening up on the Chinese market would not only benefit large firms, but also small and medium-sized enterprises and service providers.

Dr. Oberholz stated that German firms in particular attach great importance to the Chinese market and its dynamic development. He singled out the high standard of education of chemists and chemical engineers in China which has ultimately contributed to the fact that companies are tending to open subsidiaries in China and to relocate their research and development here.

Development trends and outlook for China
China backs high technologies, cooperations and investments
General conditions for investors optimized
The Chinese government is backing the development of China into a prime location for high technologies. China’s entry to the WTO has meant that international partnerships and cooperations and also the heightened presence of China play an increasingly important part in international competition. The infrastructure and size of China’s numerous high-tech parks are impressive and even the provinces are competing for investors in designated technology projects. Petrochemistry and the chemical industry, electronics, new materials, biotechnology, communications technology and also food production and environmental protection are the prime growth sectors. From 2001 to 2005 imports of technology equipment and products are set to reach US$ 1,400 bn (thousand million).

Chemical and petrochemical industry – powerful economic factor for China
In the chemical, petrochemical and pharmaceutical industries, in food technology, biotechnology and the field of environmental protection there is a tremendous demand for equipment, technology and know-how.

In terms of size and growth China’s chemical industry has achieved world class; it already contributes little short of 10% to the gross domestic product of the People’s Republic. In a recent study for the chemical industry Frost & Sullivan forecast 9% growth both for the current year and next year.

According to data of China Petroleum and Chemical Industry Association (CPCIA), in the first half year 2003 the unabating demand for chemical-based consumer goods produced a sales volume of US$ 55.1 bn total chemical production, an increase of 27%. The volume of sales in the pharmaceutical industry is anticipated to rise from approx. US$ 30 bn in 2002 to approx. US$ 47 bn in 2006, that in the agrochemical branch from US$ 2.27 bn in 2002 to almost US$ 3 bn by 2005.

Meanwhile in the first half-year of 2003 foreign direct investment in China rose by 34% to US$ 30.3 bn. According to China’s State Statistical Bureau and the Ministry of Foreign Trade an Economic Cooperation, this value tops that of the previous year by 13%. If this trend continues a new record level of over US$ 60 million l is expected to be set.

Demand boom from China undiminished
Incoming orders to members of the German Working Party on Plant Engineering of VDMA (German Engineering Federation) for 2003 amounted to €16.4 bn, 8% more than in the previous year; 75% of these, predominantly for power stations and chemical plants, came from abroad. China’s share of €1.2 bn placed it firmly in the lead.

Companies the world over are showing interest in entering the Chinese market. Exhibitors at ACHEMASIA, such as BASF, Lurgi, Uhde, Bayer, Degussa, GEA, currently have large-scale projects lined up in China. On the other hand, numerous small and medium-sized firms, such as KSB, Prominent, Lutz Pumpen, Feluwa Pumpen and Arca Regler have had a firm footing in China for years, the majority with their own manufacturing facilities or commercial agencies. For them ACHEMASIA has been a source of intensive client contacts.

China attracts highest investments
China continues to attract the greatest direct investments in the world. In 2002 alone, foreign companies invested US$ 53 bn in this market, for 2003 an estimated US$ 60 bn and for 2004 a staggering 65 bn have been predicted.

Last year the volume of trade between the EU and China, which soared to US$ 125.2 bn, an increase of 44.4%, outstripped that between the USA and China. To date China and the EU are each other’s third largest trade partners. The EU is even the biggest provider of equipment and technology to China and China’s fourth largest source of investments. With 40%, investments by the some 2000 European companies in China last year grew twice as strongly as those of US companies. Bilateral trade between Germany and China, currently at € 50 bn, has been predicted to double by 2010.

Growth in China’s biotech branch
Opportunities for cooperations in science and industry
The Chinese government attaches great importance to the development of biotechnology and the biochemical industry. The tenth Five-Year Plan lists biotechnology among the 12 key high technologies whose development has top priority. The “863” support programme aims to promote the continuing industrialization and commercialization of Chinese biotechnology.

According to the “Chinese Biotechnology Industry Development Report” (2002), in 2002 there were about 300 biotechnology firms which were also involved in research and development, particularly in the areas of health and agriculture. Around half of these firms were small and medium-sized enterprises founded in the five previous years. Approximately 150 firms had production capacity, 60 of which had permits to manufacture genetically produced pharmaceuticals and vaccines. At the time only a handful of these enterprises had recorded serious growth and profitability. Other sources of the China National Center for Biotechnology Development (CNCBD) give the number of biotech companies as 500 with a workforce of approximately 50,000; over 300 of these firms were in the medical/biotechnological sector. Around 100 new biotech start-ups are said to be launched annually.

How to do business in biotechnology
During ACHEMASIA a two-day China-EU Workshop on cooperation in the field of biotechnology and a Business Meeting on the topic “How to do business in biotechnology” brought together experts from China and abroad. Borge Diderichsen of Novo Nordisk/Denmark, president of the European Federation of Biotechnology, announced new Sino-European joint research projects in the framework of the European Commission’s Sixth Framework Programme. In particular, cooperation with the Beijing Genome Institute is to be continued and intensified. One priority area will be green gene technology, specifically for rice and maize cultivation. In his plenary lecture Diderichsen emphasised the opportunities that biotechnology and life sciences can contribute to sustainable development, the efficient use of natural resources, and to new, safe medicine and foodstuffs. This new knowledge and the innovative technologies would have the best prospects where they offer the greatest benefit, for instance in developing countries.

Prof. Rolf Schmid of the University of Stuttgart, who can look back on years of experience of cooperation with Chinese research groups, confirmed the fact that, as a result of the Business Meeting on “How to do business in biotechnology”, interesting contacts had been made with Chinese representatives who were interested in partnerships and joint research projects, especially in the fields of biopharmaceuticals and bioengineering.

Sustainability the key to China’s industrial development
Sustainable development, environmental protection and green industry feature prominently on the political agenda of China, a fact that was highlighted in the accompanying ACHEMASIA Congress Programme. The plenary lecture of Zhang Kunmin of Ritsumeikan Asia Pacific University and Vice President of the Chinese Society for Sustainable Development was devoted to trends and perspectives of clean energy production in China. As a result of a resolution passed by the National People’s Congress in March 2004 a commission has been appointed to promote environmentally friendly technologies and renewable resources and energy sources, and to pass the corresponding legislation.

From 1996 to 2000 China’s expenditure on environmental protection amounted to around 450 bn RMB and investment in the environment will considerably exceed this figure in the coming Five-Year Plan. To this end China needs foreign technology. Modern equipment for treatment of industrial water and gas, complete wastewater treatment and water recycling plants, plant for hazardous waste disposal and also control and analysis equipment for gas, water, air and noise. In view of the Olympic Games in Beijing in 2008 and the World Exhibition in Shanghai in 2010, most of the current problems have to be solved by then.

With new investments it is considered vital that new techniques and processes in the chemical industry and power generation, the use of modern materials and biotechnology bring about higher efficiency and less pollution. To achieve such ambitious aims cooperations with foreign partners in research and industry are more sought after than ever before.

Core theme: water technologies
The sustainable use of water in the process industry, recycling of process water and effective treatment of municipal and industrial wastewater were core themes of the exhibition and the Business Meeting on “Sustainable Water Management in Industry and Municipalities”. Industry and local authorities together account for 30% of total Chinese water requirements, which amount to 557 bn mł (2001), and the volume is steadily increasing. In contrast, especially in the north of China there is a shortage of water. This situation is aggravated by the severe contamination of existing resources by industrial production, municipal wastewater and agriculture. This is all the more alarming since China’s current economic growth is based mainly on water-intensive sectors of industry, e.g. steel production, the textile industry and the food industry. In the next few years China will increasingly invest in plants for wastewater treatment and in projects to secure a high-quality water supply. Thus the aim is to reprocess and treat approximately 50% of wastewater from urban regions and 70% from urban centres by the year 2010. Last year the share was about 25%.

At ACHEMASIA possibilities were presented for economizing on water in industrial processes by an intelligent recombination of processes (Integrated Environmental Engineering). Another main theme was the cost-efficient expansion of existing industrial and communal wastewater treatment plants, above all in water-intensive industries, and the use of innovative technologies, such as UV, ozone and modern separation technologies, which are increasingly demanded by the Chinese. Possibilities for the successful involvement of foreign companies in China were discussed at length and new contacts were forged on the spot.

In terms of legislation, in the past two years an important regulatory framework has been created to support the market for water treatment technologies and services. In January 2003 the “Law on Cleaner Production “ took effect which, among other things, requires the recycling of wastewater and application of low-emission technologies. On 1 May this year a regulation came into force enabling private companies to run municipal infrastructure facilities, e.g. water supply and wastewater disposal. A large number of international companies used this two-day Business Meeting to make new contacts with Chinese companies and exchange ideas and experience with experts and clients.

ACHEMA worldwide concept widely acclaimed
“See you at ACHEMAMERICA in Mexico City in April 2005”, was to be heard not only from Australian and French exhibitors at their joint stands.

The ACHEMA worldwide concept with three exhibition-congresses on three continents in a three-year cycle – ACHEMAMERICA 2005 in Mexico City, ACHEMA 2006 in Frankfurt am Main and ACHEMASIA 2007 in China – provides an unparalleled forum for international contacts and business relationships.

Upcoming ACHEMA worldwide dates:

12 - 15 April 2005, Mexico City / Mexico
2nd International Exhibition-Congress on Chemical Engineering, Environmental Protection and Biotechnology

15 - 19 May 2006, Frankfurt am Main
28th International Exhibition-Congress on Chemical Engineering, Environmental Protection and Biotechnology

Further information, statistics, graphics and reports on new technologies, markets and prospects relating to the main topics of ACHEMASIA (in English, German and Chinese) are accessible at http://www.achemasia.de (Press) and on the Press CD.

The following Trend Reports are available for download:

1. China's Chemical Industry
2. China's Pharmaceutical Industry
3. China's Environmental Industry
4. China's Food Industry
5. Automation & Control in China
6. China's Petrochemical Sector
7. High-Purity Manufacturing in China
8. Laboratory and Analytics Market China
9. Biotechnology in China
10. Chinese Biotech Industry