In 2009, the financial crisis and the double pressure of excess production capacity, China’s industry, soda ash, heavy losses of large companies lose up to one billion U.S. dollars, the loss of medium size go up “thousands of yuan, the loss of small businesses more than one million yuan. With the advent of new financial crisis years of the Chinese soda ash, the negative effects gradually declined, but the problem of overcapacity in the industrial scale even worse. Therefore, China Soda Industry Association Vice-President and Secretary General Wang Xiling, said in an interview, and strict supervision of the production and maintenance of the stability of the market for soda ash industry is faced with the priority this year.

Wang Xiling introduced in 2009, the capacity of China Soda Ash production is 24 million tonnes, production is expected to exceed 19 million tons, domestic demand for soda ash is expected to exceed 17 million tons and export volume of more than 200 million tonnes for the year, the production capacity of five million tonnes at idle. “Even if there is no financial crisis, soda industry, the problem of excess capacity will be fully exposed in 2009.” Xiling Wang said in 2010 the soda industry minister, the new capacity will be around 200 million tonnes, while demand is also the most optimistic estimates, d’environ 18 million tons and export volume will be 200 million tonnes, soda industry overcapacity situation worse.

Wang Xiling analysis, exports of soda this year is even smaller, the volume of exports may be reduced by 30 million tonnes. He told reporters October 6, 2009, the Indian Ministry of Finance has the final disclosure of China has agreed to a 20% sodium carbonate special safeguard measures for income taxes for the tax period to present, 2010 04/20/2009 April 1919. The Indian delegation will also be after the expiration of the current round of special safeguard measures to an application for renewal, leading to this year, China to the Indian soda considerably reduced.

Turkey, an annual production of 1 million tons of soda ash plant was also put into production, since the proximity of the Middle East, the export of soda ash in China is a major threat to the Middle East. As the first country to soda ash exports after the United States in the development of the financial crisis began, and export of soda in the second place in the world, China has launched a full-fledged competition States U.S. steps to set their prices reduce to expand market share, will also lead to exports of China Soda this year a greater impact. Moreover, European companies Solvay joins the battle for the Asian market in 2009, began a large-scale export soda Asia ash.Wang Xiling said that this year with the complete recovery of the national economy and sustained GDP growth, internal Consumption of soft drinks increased by more than in 2009, the average selling price higher than in 2009. “If we will carefully monitor the total amount of losses across the sector will be significantly improved, and, if properly framed, the possibility of some loss-making enterprises still high.”

To this end, Xiling Wang said: “The soda industry, the idea this year is the amount of work, reduce losses, as much as possible to 80% control over the ability to play to ensure basic balance between supply and supply. It supports the industry and the cooperation of large companies. Association Hope this backbone enterprise scale a good location (close to the energy, raw materials and the origin of the convenient transport) and companies as well as equipment, technology and management the high level of the three types of companies are able to control the production, maintenance of the loss and not a small amount of benefit at the same time, price stability conducive to the survival of the fittest of the industry. ”

Wang Xiling introduction associations soda in the preparation of an industry “soda ash, the conditions of entry” (draft), site plans production at the level of the project, an energy savings of emission reduction, product quality, many aspects such as the proposed soda for existing and new businesses to the standards of soda to improve the capacity of industry to limit soda and continuous expansion. Currently, the combination of soda association is increasing across the country summarizes the views of the industry “soda ash, access conditions” for change and improvement.

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