NewMaterialsIndustryinChinaandEU-ChinaCooperationOpportunities.doc

1、New Material Industry in China and EU-China Cooperation OpportunitiesI. National policies and development path of the industryNew material is a newly developed industry which includes materials with outstanding or special functions. The range of the industry is so broad that it could reach out to va

2、rious sub-sectors of other industries. Development of new material industry will not only lead to development of high technology industries such as electronic information, bio-technology, and aerospace industries, but also facilitate technology improvement and product structure adjustment in the tra

3、ditional industries such as machinery, energy, chemical and textile industries. Along with advancement of science and technology, application range will be continuously expanded.The government fully supports the following projects in the new material industry in order to form industry clusters and t

4、o boost development of related industries:? Application and technology development in metallic materials, new non-metallic materials, new polymer materials and new composite materials? Research and development of ultrafine powder technology and nano technology for new materials? Expansion of the sco

5、pe of new material industry to application of micro-electronics, energy, environmental protection, medical, chemical, construction material industriesThe project area is rich in magnesium and aluminum minerals, and competitive in producing REPM (Rare Earth Permanent Magnet) and stainless steel mater

6、ials. The following list includes the core products in the new material industry in order to achieve a “ rawmaterial -to-final product ” industrialized production system that? High-quality magnesium and alloys, high-strength aluminum alloys, and deep processed metallic and alloy products? REPM mater

7、ials? High end stainless steel products? Hard fiber materials; and? LED (Light Emitting Diode)1.Nonferrous products1) The current technology of smelting magnesium with silicon-thermal method requires high energy consumption, and causes serious pollution. Under theprinciple of “ Reduction, Recycling,

8、andresourcification”, experts and academics in the field have suggested the following:- Standardized exploitation system- Clean heating fuel- Regenerative energy saving system- Sustainability of core technology development- Harmless fire retardant protective materials- Recycling of solid waste- Mech

9、anization of production and automation of production process2) Studies on basic technology for magnesium and magnesium alloys will have important chain effects on stabilizing resources and optimizing its utilization. An expanded and optimized industry model should be developed based on the market-or

10、iented, product-led, and demand-driven themes.3) Fully taking advantage of the rich resources in the area, competitiveness of the aluminum industry should be strengthened by developing the deep processing technology for aluminum industry such as alumina and coal-electrolytic aluminum integration.2.

11、Neodymium magnetHigh-end special purpose neodymium magnet materials and deep processed products should be further developed along with an industrialized system.3. Deep processed stainless steel productsThe shift in product mix is suggested from the current concentration on welded pipes, chemical har

12、dware components, medical equipments, construction pipes, and stainless steel doors to higher added value products such as kitchen appliances, electronics, household appliances, and construction-purpose materials.4. New construction materials The suggested projects include:1) High and environment-fr

13、iendly technology to produce fine-processed mineral materials with high purity, ultra-fine, and modification2) Technology for direct-melt E class fiber with annual capacity of 300,000 tons or above, and technology for high performance fiberglass and its products3) Technology for high-quality glass p

14、roduction; and4) New environment-friendly and energy-saving wall materials, noise insulation materials, waterproof, sealing and coating materials for constructionII. EU-China cooperation opportunities1. Nonferrous products1)The European Parliament and the Council has reached an agreement onREACH(the

15、 Registration, Evaluation, Authorizationand Restrictionof Chemicals) onDecember 18th, 2006 (EC No. 1907/2006)Implementation of REACH will affect the magnesium product market in China to agreat extent, starting from manufacturing firms and trading companies. Currently,7080% of the Chinese magnesium p

16、roducts are traded abroad. For the recentyears, export to Europe accounts for 50% of the total export volume. In 2006, thetotal export of magnesium ingots, alloys, tablets, and power to Europe amounted to163,000 tons (48.3% of its total export): magnesium ingots 87,000 tons (50% of itstotal export)

17、and magnesium alloys (59.3% of its total export).The magnesium industry in China is still considered as a high energy consumingand polluting industry. Hence, huge inflowof resources and investment arerequired to meet the REACH standards, which will result inraisingproductioncosts and decreasing comp

18、etitiveness. In addition, it may alsoaffect downstreamproducts and industries.At the same time, implementation of REACH is also an opportunity for the magnesium industry in China. Its regulations will definitely facilitate healthy development in magnesium industry by applying higher standards to R &

19、 D, manufacturing, sales, storage, transportation, proper use and disposal of magnesium products. In doing so, companies in the industry will be forced to adjust the structure of the products and industry as a whole, scale up the capacity,adopt the international standards, improve quality of product

20、s, and explore international cooperation opportunities with advanced partners.2) Integration technology of die casting derived from auto parts production3) Technology for high quality deformated magnesium alloys: formed materials including plates, wands, pipes and belts, and forming technology inclu

21、ding forging, rolling and welding4) Disposal and recycling technology for magnesium waste5) High-end deep-processed magnesium products used in aerospace, automobile and IT industries will attract foreign investment into the relevant industries, which willboost development of magnesium alloy products

22、. The conversion rate of original magnesium will reach 60% or above.6) Aluminum and aluminum alloys: Taking advantage of rich resources in electrolysis aluminum, China should develop technology for aluminum alloys and deep processed aluminum products with high aluminum content, high value-added, hig

23、h precision and high intensity. By adopting advanced technology and equipment abroad, China will realize clean production and sustainable development, and the following projects are suggested in this theme:- High-precision aluminum strips, porous aluminum material, aluminum wires, and aluminum wands

24、- Aluminum wheel for automobiles, aluminum foil for air-conditioner, cable foil, aluminum ally foil for electrolytic capacitor, etc.2. Neodymium magnetAccording to the authority, the global market for neodymium magnet is expected to grow at the rate of 30% every year during the 21st centry. By 2010,

25、 the global demand for high-end neodymium manget will reach 100,000 tons. A production line has been under construction, which has annual capacity of 3000 tons of metalic neodymium and 1500 tons of high-performance neodymium magnets. Some companies in Shanxi that produces neodymium magnet materials

26、are now always making full effort to develop high-end and deep-processed products.The project region has comparitive advantage in resources and technology for special purpose magnets. Hence, China should develop highperformance permanent magnetic materials as one of the pillar industries of the regi

27、on, and the related sectors and products include:1) Computer, information, communication, automobile, and filming industries2) Micro-motor, Magnetic motor, magnetic materials for electronic communication components, medical equipment parts, home electronics, etc3. Deep-processed stainless steel prod

28、uctsApplication range of stainless steel is very broad mainly including petrochemical, chemical, electric power, shipbuilding, logistics, home electronics, light and environmental protection industries. Taking full advantage of rich raw material for stainless steel in the region, the industry in Chi

29、na should further adopt advancedtechnology, equipment and capital, and shift to producing deep-processed stainless steel products such as:- Automobile exhaust system, solar energy thermal storage device, heat exchanger, high-end home electronics, kitchen appliance, and silverware4. New construction

30、materials1) Construction glass sector:- To facilitate development of deep-processed products such as Low-E glassDeep-processed products such as Low-E glass is highly efficient in thermal insulation and energy saving. In an experiment, provided the same window-to-wall ratio, low-E coated insulating c

31、lass windows are 72.4% more energy-efficient than that with single layer glass, and 24.12% more energy efficient than that with double layer glass. The result shows that more than 40% of energy consumption in construction sector can be wasted depending on the glass used in the construction materials

32、.2) Construction ceramics, industrial ceramics, and refractories- To upgrade technology for ceramic tiles and scale up production capacity of high quality ceramic tiles- To support the current companies which produce special purpose industrial ceramics to upgrade technology and scale-up production c

33、apacity- To develop refractory product and continuously expand the production capacity3) Non-metallic minerals-To attract capital and technology to facilitate development of gypsum and its productsGypsum deposit in Shanxi ranks 4th in China, and the number of power plants in demand for desulfurized

34、gypsum has been gradually increasing. Hence, gypsum production in the region has been enjoying advantageous business environment, and playing an important role in industrial development in ChinaThe largest market for desulfurized gypsum from power plants is in production and application of construct

35、ion wall materials. The current challenges in this sector are to develop new products, technology and capital, and to support technology innovation of companies. A company in Taiyuan, called Beifang Gypsum Engineering Company, has already conducted a breakthrough research on construction gypsum and

36、high-strength gypsum for desulfurized gypsum, mobilized capital to build up production lines with increased capacity, and reached electric power plants nation-wide.- To further develop deep processed products of coal kaolinCoal kaolin is debris of coal industry in Shanxi, and it is also very special

37、 resource for the region. The current application of coal kaolin in Shanxi is mostly calcined kaolin. However, the concentration of production is very low, the technology level varies within the sector, the average product quality is low, and the scope of product market is narrow. China, therefore,

38、should seize cooperation opportunities with the EU to develop technology and product market and to attract investment inflow in order to reach the international market with advanced technology. Inaddition, further application of coal kaolin should be facilitated such as aluminosilicate materials wit

39、h fire and heat insulation function including fiber- and other shaped materials.- Further development of deep processed bentonite productsBentonite has good functions such as good grain structure, catalytic, thixotropic, adsorption, and ion exchange, so it can be used in many types of deep processed

40、 products including petroleum, chemicals, drilling, casting, pellets, paint, ink, grease, cosmetics, and also used in adsorption, bleaching dispersant and so on. Shanxi has about 6o million tons of high quality bentonite in Hunyuan area. Despite of continuous research for many years, development of

41、the sector is very slow, technology is low, and there is no variety in products. Hence, it is strongly recommended to understand and coordinate with the currently existing companies in this sector to revitalize the sector.4) New wall materials- Technology for desulfurized gypsum wall materials- New

42、large-scale production lines, technology and capital for dry-mixed mortar, such as masonry, plastering, pouring, and flooring- New production lines, technology and capital for ceramsite (available industrial solid waste etc.)- Autoclaved aerated PFA sheet products (by adopting reinforced injection molding technology onto the currently available one)5) Chemical construction materials-Shanxi Xinchao Co . (in Qingxu) is the largest company that produces plasticpipes withvariety