In 2009, the global financial crisis caused a dramatic drop in sales revenues and prices for most of the world’s chemical companies. Even industry leaders like BASF, Bayer and Dow saw a 70 percent plunge in profits. But ChemChina, which carefully planned for the economic slowdown, reported 910 million yuan in profits last year, only slightly lower than 2008 profits.
Ren Jianxin, the president of ChemChina, told the company’s annual working conference that the chemical industry was confronted with unprecedented challenges due to the financial crisis and production capacity surpluses.
Striving to sustain its economic growth, ChemChina obtained support from the government. Li Rongrong, director of the State-owned Assets Supervision and Administration Commission (SASAC), twice paid visits in support of ChemChina’s strategies. Under the leadership of the SASAC and effective supervision of the board of supervisors for State-owned enterprises, ChemChina implemented central macro-control policies and responded immediately to the impact of the international financial crisis. ChemChina took various measures to actively promote innovation and overcome difficulties. So far, it has achieved good results.
ChemChina President Ren Jianxin, based on his careful analysis of economic development forecasts for 2010, said this year will be a better year for the enterprise. Major economies in the world are recovering from the recession, and the Chinese government is continuing its policies of stability and continuity. However, there are still some unstable economic factors, he said, explaining that ChemChina still faces cyclical adjustments and overcapacity over the long term. There are also uncertainties about exchange rates and crude oil prices. In the future, the industry will focus more on raw materials, cost controls, scale and operational efficiency. Industrial restructuring will also demand innovation. According to the “adjust the structure and promote capability” policy, ChemChina will take the initiative to meet challenges and capitalize on new opportunities in the New Year.