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Henan has become a large chlor-alkali industry
In the past two years, the chlor-alkali industry in Henan Province has experienced a rapid and impressive growth. Companies like Yuhua Yuhang Chemicals Co., Ltd., Henan Shenma Chlor-Alkali Development Co., Ltd., and Henan Hengtong Group have emerged as major players in calcium carbide-based PVC manufacturing, transforming Henan into one of China’s key chlor-alkali production centers.
Despite being an inland agricultural province without coastal access or significant coal and power resources, Henan has managed to build a strong chlor-alkali industry. This development raises questions: How did a region lacking traditional advantages manage to become a major player in this sector?
The answer lies in the unique strategies adopted by local enterprises. While eastern China relies on ethylene-based production and western regions use calcium carbide, both faced challenges. Rising oil prices increased costs for ethylene-based producers, while western companies struggled with limited local demand and high transportation costs.
Henan, however, capitalized on its cost-effective labor, resource availability, and strategic location. For example, Yuhua Yuhang, once a small chemical plant, expanded rapidly and became a leading producer of calcium carbide-based PVC. By 2007, it had achieved a capacity of 400,000 tons of caustic soda and PVC, showcasing strong competitiveness.
Similarly, Henan Shenma Chlor-Alkali grew from a modest 80,000 tons per year in 2003 to over 400,000 tons by 2007, driven by strategic expansions and market opportunities. Meanwhile, Henan Hengtong Group also scaled up quickly, reaching 400,000 tons of PVC production capacity within just a few years.
A key driver behind this success is the strong downstream market in Henan. The province has developed a large aluminum processing industry, which consumes significant amounts of caustic soda. This created a stable and growing demand for chlor-alkali products.
Moreover, Henan's central location gives it a logistical advantage. Its proximity to East and South China allows efficient distribution of PVC to major consumer markets. Companies like Yuhua Yuhang and Henan Hengtong have established wide customer bases across the country and even expanded internationally.
Beyond market demand, Henan's chlor-alkali companies have also embraced circular economy practices. Advanced technologies, such as ion membrane electrolysis and energy recovery systems, have helped reduce costs and environmental impact. Enterprises like Yuhua Yuhang and Henan Hengtong have set new standards in energy efficiency and pollution control.
Looking ahead, the industry is expected to continue its upward trajectory. Shenma Chlor-Alkali aims to reach 1.2 million tons of caustic soda and PVC production within the next few years, positioning itself as a global chlor-alkali hub. Yuhua Yuhang also plans to scale up to a million-ton production level, with sales revenue targeting 10 billion yuan.
This remarkable growth highlights how innovation, strategic planning, and adaptability can turn challenges into opportunities, making Henan a shining example in the Chinese chlor-alkali industry.