Soda ash light/dense Sodium carbonate - lezonsourcing.com · export for soda ash is only 1.98...

2017

Shanghai Lezon Consulting Co., Ltd

www.lezonsourcing.com

Soda ash light/dense

Sodium carbonate

1 Shanghai Lezon Consulting Co., Ltd www.lezonsourcing.com

ABSTRACT

Soda ash, (Chemical name, sodium carbonate, molecular formula: Na2CO3, CAS No: 497-19-8), is a wide used

chemical for many industries.

The Chinese soda ash industry remains the largest of any nation and is continuing to expand but faces increasing

economic problems that are affecting the financial viability of some operations. A prime cause of this is the continued

opening of new capacity at a higher rate than domestic consumption. Where previously Chinese producers could

export soda ash they are facing increasing competition from US producers who are enjoying highly competitive

production costs. This has led to a number of capacity expansions in the US where producers have become

increasingly dependent on the export market because of weakness in domestic consumption.

The total capacity of soda ash production in China is about 30 million tons in the year 2016, actual output is about

26million tons, only about 6% is natural soda ash, about 49% is using Combined-soda Process and 45% is using

ammonia-soda process. Top 15 manufacturers occupied about 2/3 total capacity. The export volume is only 2million

tons annually, about 7.6% of the actual output, main markets are South-East Asia, South Asia and East Asia market.

Contents

Brief introduction of Soda ash Page 2 to 3

Overview of global production and consumption of soda ash Page 4 to 5

Overview of soda ash production and consumption in China Page 6 to 7

Supplier evaluation (Seven suppliers) Page 8 to 21

Supplier relationship management Page 22


Brief introduction of Soda ash

Soda ash, (Chemical name, sodium carbonate, molecular formula: Na2CO3, CAS No: 497-19-8), is a wide used chemical

for many industries. The actual output of China is about 26 million tons in 2016, (about 45% of global output), the

export for soda ash is only 1.98 million tons, only 7.6% of the production volume.

Chinese manufacturers produce soda ash by three processes (natural, ammonia-soda process, Combined-soda

Process), and produce two types, soda ash light and soda ash dense according to bulk density, and used for different

industries. Chemicals synthesis process use soda ash light to produce soda ash dense, so normally the ex-work price of

soda ash dense is higher than soda ash light, but it is uncertainly for CIF incoterm, as it can load more quantity of soda

ash dense in a 20 feet container than light.

Specification:

Standards: GB210—92

Items Specification

Total Alkali(Na2CO3 Dry Basis)% 99.2 min

Appearance white crystalline powder

Chlorides (NaCl) % 0.7 max

Sulphate (SO4) % 0.03 max

Iron (Fe2O3) % 0.004max

Water Insoluble matter % 0.05max

Particle size 180um Sieve Remaining % 70min

Bulk density for soda ash light (g/ml) 0.5-0.6

Bulk density for soda ash dense (g/ml) 0.9min

Package: 40kg/bag and 750kg/jumbo bag for soda ash light

50kg/bag or 1000kg/jumbo bag for soda ash dense

Soda ash is most commonly used in:

1. Manufacture of glass, where it reduces the melting temperature of the sand used in glass formation and helps in

the 'workability' or shaping of glass articles such as tableware and float glass.

2. Making soaps and detergents, where it is employed as a builder, or filler, to give a smoother surface.

3. Production of chemicals such as sodium silicate, sodium bicarbonate, percarbonate, and sodium chromate and

dichromate.

4. Pulp and paper manufacture, water treatment, effluent treatment, metallurgy and drugs.

Soda ash dense is mainly used in manufacturing of glass industry and metallurgy.

Food grade soda ash, Standards: GB1886-1992

Items Specification

Total Alkali(Na2CO3 Dry Basis)% 99.2 min

Chlorides (NaCl) % 0.7 max

Sulphate (SO4) % 0.03 max

Iron (Fe2O3) % 0.004max

Heavy metal (as Pb) % 0.001max

Arsenic (As) % 0.0002max

Loss on ignition % 0.8 max

Water Insoluble matter % 0.03max


Ammonia-soda process/ Combined-soda Process

1. Ammonia soda process (Solvay process)

Each ton soda ash will consume

1.5MT industrial salt

1.4MT limestone

0.115MT coke

0.4MT steam coal (energy)

Will discharge

10M3 waste water (produce CaCl2)

300-400kg waste residue

2. Combined-soda Process

Each ton soda ash will consume

1.15MT industrial salt

0.345MT ammonia

0.26MT steam coal

Will have by product 1.03MT ammonium chloride NH4Cl

Will discharge several kg to dozens kg of waste residue.

Salt (or brine)

Limestone (CaCO3)

Ammonia

Coke

CaO

NaHCO3

Wasted residueNH4Cl

Na2CO3(Soda Ash)

CO2

Ammonia

Waste water CaCl2 (72%)

NH4Cl

Natural gas or

coal gas

CO2

Ammonia

NaHCO3

NH4Cl solution

Na2CO3(Soda

NaCl Solution


Overview of global soda ash production

The global soda ash capacity is about 66.22million tons in the year 2015 the Chinese soda ash industry is the largest of

any nation, occupied about 45.85%. The North American industry is the second largest, occupied 22.68%.

About 94% of Chinese soda ash production capacity is using chemical synthesis process, ammonia-soda process,

Combined-soda process but most of North American capacity is natural soda ash.

Top 5 manufacturers globally

No.1 Solvay (Belgium)

Solvay Soda Ash and Derivatives is a world leader in its sector, with soda ash serving the glass, detergent and chemical

markets and with sodium bicarbonate and trona serving the food, animal feed, flue gas cleaning and healthcare

markets. The unit has 12 industrial sites worldwide, more than 4,000 employees and serves 90 countries.

Capacity: 5.31 million tons Synthetic soda ash and 2.97million tons natural soda ash

No 2. TATA chemicals (India)

Tata Chemicals manufactures light soda ash using the Solvay process. We are the world's second-largest producer of

soda ash and the most geographically diversified soda ash company. The manufacturing facilities in India, the UK, the

US and Kenya constitute an efficient supply chain that can service customers across the globe.

TATA chemicals have a global capacity of around 5.5 million tons of soda ash per annum, of which 60 per cent is from

natural deposits at Wyoming, US, and Lake Magadi, Kenya. Besides, the company owns 35 per cent of the global

low-cost and sustainable natural soda ash capacity

No. 3 Ciner Group (Turkey)

Ciner Group made a giant purchase on Soda Ash on July 2015, and acquired the management share of OCI Resources

LP that is the largest producer of soda ash of the world. It will be the global leader of natural soda ash production with

its current on-going investments and investments that will be completed in 2017.

Capacity: 4.4million tons natural soda ash

No. 4 Shandong Haihua Group Co., Ltd

Shandong Haihua Group was established in 1995 by combining Shandong Weifang Soda Plant and Shandong Yangkou

46%

23%

13%

6%6%

6%

2015 global soda ash production

China

North America

West Europe

East Europe

South Asia

others


Salt Plant. The Group is an oversize enterprise mainly engaging in the rising ocean chemical industry and oil industry.

By the year of 2009, Shandong Haihua Group became member of the CNOOC

Capacity: 3.0millon tons synthetic soda ash

No. 5 Tronox

The company signed a deal with FMC for the acquisition in February 2015, FMC’s Alkali Chemicals unit produces

natural soda ash for glass manufacturing, water treatment, pulp and paper, textiles, food, pharmaceutical and

cosmetics industries. It operates mining and processing facilities in Green River, Wyoming, US.

Capacity: 2.8 million tons natural soda ash.

Global consumption

Global consumption of soda ash recovered strongly after 2009 but has weakened in recent years because of lower

than expected economic growth, especially in Europe and North America. Chinese consumption has continued to

grow but has been lower than previously expected because of lower levels of activity in the construction sector.

The Chinese soda ash industry remains the largest of any nation and is continuing to expand but faces increasing

economic problems that are affecting the financial viability of some operations. A prime cause of this is the continued

opening of new capacity at a higher rate than domestic consumption. Where previously Chinese producers could

export soda ash they are facing increasing competition from US producers who are enjoying highly competitive

production costs. This has led to a number of capacity expansions in the US where producers have become

increasingly dependent on the export market because of weakness in domestic consumption.

In Europe producers are facing a number of difficulties, which has led to the closure of a number of operations over

the last decade. These include rising production costs and stagnant regional consumption, and most recently

competition from new Turkish capacity. Some

European producers have switched to supplying higher value products, notably sodium bicarbonate, in order to

remain competitive. Turkish companies are now significant suppliers to the Middle East/Europe and will become more

important in the future as additional capacity is planned. The Indian market is now protected from lower cost imports

by tariffs and is likely to show lower growth in demand as a consequence. The South American market has grown

markedly in recent years and will become increasingly important in the future, especially to US producers.

Glass remains the main market for soda ash and will continue to do so into the future. The flat glass sector in

particular has become increasingly important to soda ash producers and will continue to do so into the future. In turn,

demand for flat glass is highly dependent on levels of activity in the global construction sector and to a lesser degree

automotive production. Construction continues to be highest in East Asia and the Middle East but is also slowly

recovering in North America and the regional economy slowly recovers. The European construction sector, previously

one of the largest in the world, remains largely subdued and is unlikely to show significant growth for years to come.

Demand for soda ash will be adversely affected by the increased use of recycled glass or cullet, especially in Europe

where systems for its collection and delivery to consumers have become increasingly well developed. This is also the

case in Japan and to a lesser degree the USA. Elsewhere use of cullet is less common but will rise in the future.

Markets in metal processing and flue gas desulphurization in particular are expected to show strong growth in the

future.


Overview of soda ash production in China

The total capacity of soda ash production in China is about 30 million tons in the year 2016, actual output is about

26million tons, only about 6% is natural soda ash, about 49% is using Combined-soda Process and 45% is using

ammonia-soda process. Top 15 manufacturers occupied about 2/3 total capacity. The export volume is only 2million

tons annually, about 7.6% of the actual output, main markets are South-East Asia, South Asia and East Asia market.

Main Chinese soda ash manufacturers

Company Capacity Technology Location

Shandong Haihua Group Co., Ltd 3 million tons Ammonia-soda Shandong

Tangshan Sanyou Group Co., Ltd 2.3 million tons Ammonia-soda Hebei

Lianyungang Soda ash plant 1.2 million tons Ammonia-soda Jiangsu

Shandong Haitian (Jinjing Group) 1.2 million tons Ammonia-soda Shandong

Qinghai Soda ash development 1.2 million tons Ammonia-soda Qinghai

CNSG Kunkun soda ash 1.1 million tons Ammonia-soda Qinghai

Qinghai Wucai Mining 1.1 million tons Ammonia-soda Qinghai

Henan Jinshan Huagong 1.7 million tons Combined-soda Henan

Sichuan Hebang Co., Ltd 1.2 million tons Combined-soda Sichuan

Hubei Shuanghuan chemical 1.1 million tons Combined-soda Hubei

Shihlien chemical indusrial (Jiangsu) 1 million tons Combined-soda Jiangsu

Dahua group dalian chemical plant 0.8 million tons Combined-soda Liaoning

Tianjin Bohua Yongli chemical industry 0.8 million tons Combined-soda Tianjin

Chongqing Yihua chemical plant 0.7 million tons Combined-soda Chongqing

Jiangsu Debang Chemical industrial 0.78 million tons Combined-soda Jiangsu

Jiangsu Huachang chemical industrial 0.7 million tons Combined-soda Jiangsu

Zhonghai Huabang chemical 0.6 million tons Combined-soda Jiangsu

Henan Zhongyuan chemical Co., Ltd 1.2 million tons Natural soda ash Henan

Other manufacturers 7.9 million tons

As the value of soda ash is not quite high, the freight cost will take a large percentage of the total cost, so the soda ash

sales range is limited by sales radius. General speaking, only the plants nearby the sea ports or river ports have the

advantage for the export market.

10.14%

11.50%

6.09%

5.75%

4.06%

4.06%

58.40%

Capacity of Chinese soda ash manufacturers

Shandong Haihua 3 million tons

Tanshan Sanyou + Qinghai Wucai3.4 million tons

Hubei Shuanghuan + Chongqing Yihua1.8 million tons

Henan Jinshan 1.7 million tons

Lianyungang soda ash 1.2 million tons

Shandong Haitian 1.2 million tons

Other manufacturers 17.27 million tons


Consumption in China

From the year 2011 to 2016, the consumption of soda ash increased 2.23% each year, in the first seven month of 2017,

the consumption reached 14.81 million tons, increased 8.53% compared with same period in 2016. The biggest

application for soda ash in China is for glass industry, the second largest application is to produce inorganic salts.

Procurement strategy

1. Although here are dozens of manufacturers of soda ash in China, but only several are interested with international

market, so it is important to select right partners. We will list the vendors and describe.

2. Soda ash is a very common and large volume product, the single client’s volume cannot take so big percentage for

the vendor to check the pricing strategy, but they always have special offer for large volume order. So we do not

suggest dividing your order to primary vendor and secondary vendor, except for your volume is larger than several

thousand tons.

3. As the regional economics and production cost reason, we suggest contacting with 3 to 5 manufacturers from

different geographical area for each bid.

4. Need to monitor the price trend and affect factors, such as raw material, political factors, glass industry demand.

Other notices

1. Almost all the manufacturers are state-owned companies or previous state-owned companies, which means they

are not flexible enough and their culture is different.

2. Most ammonia-soda process manufacturers are built close to the ocean, so they are interested to export their

product. But we will also recommend several combined-soda process manufacturers, as the by-product

Ammonium chloride is an important factor for the cost of combined-soda process production. Please also monitor

the market price of Ammonium chloride and Urea.

3. In many case, the price from reliable trader can be competitive than manufacturers, especially for small volume

orders, we suggest to keep in touch with one or two reliable traders, to get a better understanding the market.

4. More and more strict environmental protect regulation will affect the soda ash production directly or indirectly.

46%

6%18%

6%

3%

21%

Consumption of soda ash in China

Flat glass

Other glass

Inorganic salts

Detergents

Aluminum industry

Other industries


Supplier 1 Shandong Haihua Company Co., Ltd

Overview:

Shandong Haihua company Co., ltd is a public company listed on Shenzhen stock exchange market, the group company

hold 40.34%. Shandong Haihua group established in 1995 as the consolidation of Weifang soda ash plant (established

in 1985) and Yangkou salt plant (established in 1958). In 2004, China National Offshore Oil Corporation became the

largest share-holder (51%) of Haihua group.

Shandong Haihua company Co., ltd is the largest manufacturers of soda ash in China, and also produce Industrial salt,

calcium chloride, Bromine. Shandong Haihua company Co., ltd plays a very important role for Chinese domestic

market, and also she can export 300,000 to 400,000 MT soda ash per annual. Same as many state owned companies,

her international sales channel is quite complicated of Shandong Haihua Group, both the group company and her

subsidiary companies have Import & Export companies or departments. Please discuss with your contact and make

sure the product you are going to purchase is produced by Shandong Haihua company Co., Ltd.

Company basic information

Basic Information

Production site (Soda ash) Dajiawa, Weifang, Shandong, China

The year of establish 1995

Number of Employees 5000

Turnover in last year 760 million USD

Ownership Public, Haihua group hold 40.34% share

Capacity of soda ash 3 million tons

Actual output of last year 2.7 million tons

Other main products Industrial salt, calcium chloride, Bromine

Export ratio 10 -15%

Website www.chinahaihua.com

Commercial factors

International sales team size Medium

Payment term Negotiable

INCOTERM (for containers) FOB China port/CFR Destination port

INCOTERM (for bulk vessel) FOB China port/CFR Destination port

Nearest sea port for containers Qingdao 200km

Nearest sea port for bulk vessel Longkou 180km

Delivery in time ratio High

Communication skill Good

E-mail: Private e-mail of sales manager ([email protected])

Technology factors

Production process Ammonia-Soda process

Quality management system ISO9001

Environmental management system ISO14001

Industrial salts source Own company, other salt plants in same city

Limestone source Same province

Energy source Own company

EHS accidents in recent two years Once


The locations of Haihua Soda ash plant and nearest main ports

Supplier evaluation (SWOT analysis)

Strengths Weaknesses

1. Largest capacity in China, Quality management and

EHS management is good

1. The international sales management is not quite

good

2. Close to sea ports, inland transport cost is low 2. Sometimes, it is difficult to book a bulk vessel from

Longkou port, will have to transfer to Tianjin port

3. Very Close to raw material sources, be able to

control the raw material cost

3. Compared with another two main competitors, the

location is a little far away from sea port

4. Sales team are active, they can offer CFR based on

bulk and container

Opportunities Threats

1. They can give special offer for long term clients and

also for large volume orders

1. Evironmental protection affect Limestone supply

2. Able to make the package and print the labels as

the requirement of client if volume is big enough

2. The increasing labor cost affect the competition

3. Able to give better payment term for good credit

and long term clients

3. Waste water and waste residue treatment problem

Summary:

1. Shandong Haihua Company Co., Ltd is one of the most important suppliers for soda ash purchasing from China.

She is always among the top 3 exporters.

2. Shandong Haihua has a very good quality management system, although the company has an EHS accident in

recent years, but as the subsidiary of CNOC and passed ISO 14001, we believe they can manage the EHS affairs

well.

3. Same as many state-owned companies, they did not allow to audit their plant.

4. Environmental protection will affect the company’s production and cost directly and indirectly.

Tianjin port

Longkou port

Haihua Soda Ash

Qingdao port


Supplier 2 Tangshan Sanyou Chemical Industries Co., ltd

Overview:

As a soda ash producing enterprise, Sanyou Chemical enjoys the largest scale of production, most advanced technical

equipment and all complete variety kind of product. Company owns “TWO UNIQUE” title in soda ash industry. One

UNIQUE is that Sanyou is the only enterprise gained trebling authentication by ISO which are ISO9001 and ISO14001.

The other is that Sanyou is the only enterprise who masters three technical processes. Sanyou Chemical ranked first in

soda ash industry in various field such as bulk rate, heavy rate and rate of low-salt of soda ash product. And Sanyou is

in the lead in soda ash industry in output, quality, cost, market share and export.

Tangshan Sanyou group owns 43.8% of the share of Sanyou chemical, Tangshan Sanyou Group Co., Ltd is a large

national enterprise of chemical fiber and soda ash industry, the provincial state-owned key backbone enterprise. She

has 13 subsidiary companies and holds 50% share of Qinghai Wucai (1.1 m tons soda ash). The total assets have

reached to 24 billion CNY and annual sales revenue is 20 billion CNY. The Group has twenty thousand employees, with

an annual output of 3.4 million tons of soda ash, 500,000 tons of viscose staple fiber, 500,000 tons of caustic soda,

500,000 tons of PVC, 200,000 tons of organic silicon


Basic Information

Production site (Soda ash) Nanpu Zone, Tangshan, Hebei


Number of Employees 17,047 (the group)

Turnover in last year 31.6 billion USD

Ownership Public, Sanyou group hold 43.8% share

Capacity of soda ash 2.3 million tons+1.1million tons

Actual output of last year 2.3 million tons +1.1million tons

Other main products Viscose fiber, PVC, Caustic soda

Export ratio 10 -15%

Website www.sanyou-chem.com.cn

Commercial factors

International sales team size Big team, 600million USD


INCOTERM (for containers) FOB China port/CFR Destination port

INCOTERM (for bulk vessel) FOB China port/CFR (higher level)

Nearest sea port for containers Tangshan 80km, Tianjin port 100km

Nearest sea port for bulk vessel Tangshan 30km



E-mail: [email protected]

Technology factors




Industrial salts source Own salt plant, local salt, imported salt

Limestone source Own plant

Energy source Coal

EHS accidents in recent two years No


The locations of Tangshan Sanyou chemical Co., Ltd and nearest main ports



1. Leading brand, controlled largest capacity in China 1. Qinghai Wucai plant is far away from sea port.

2. Very close to sea ports, transport cost is low. 2. Industrial Salt in her area is a little higher

3. Be able to control raw materials resource. 3. Not offer shipment in bulk vessel by sales manager

4. Big international sales team, keen to international

market, payment term is negotiable

4. The area is under highest pressure of

environmental protection

5. Well quality and EHS management system


1. Here is a chance to get a flexible payment term

1. In Tangshan area, the company's own power station

might will not be able to operate

2. Labels can be printed as the client requirement

2. The booming domestic market will cause the

company to reduce the export volume.

3. Large volume and long term client can get special

discount

3. In winter time, the production might be shut down

by the local government

Summary:

1. Tangshan Sanyou chemical is the best supplier if we only consider the company profile, actually she is one the top

three exporters of soda ash.

2. Tangshan Sanyou has a professional international sales team, but they are not quite positive for booking bulk

vessel. If the volume is big enough, it is still possible to get the CFR INCOTERM for bulk vessel.

3. Tangshan city is under the highest pressure of environmental protection, the power stations of Tangshan Sanyou

have already been shut down by local government. Perhaps, Sanyou chemical will also be affected in winter time.

4. Tangshan Sanyou owned limestone mine, when the limestone market is tight, she will have some advantage.

Tianjin port

Tangshan port

Tangshan Sanyou chemical


Supplier 3 Lianyungang Soda Ash Co., Ltd

Overview:

Lianyungang Soda ash Co., Ltd is a state-owned company with soda ash capacity 1.2 million tons, established in 1989,

former SINOPEC Lianyungang Soda ash plant. The plant occupies a total area of 750,000 square meters and has more

than 1,600 employees. The company has her own water, electricity, railways, road transport system.

Lianyungang Soda ash Co., Ltd used to be the top three soda ash manufacturers in China, but as she did not enlarge

her capacity in recent year, so she cannot hold the position No. 3 anymore. As the nearest soda ash plant to the sea

port, Lianyungang Soda ash plant plays a very important role for export market. The company was transfer by SINOPEC

to Lianyungang city in 2016, after that we heard the company becomes more flexible for international business.


Basic Information

Production site (Soda ash) Jianchang Road, Lianyungang, Jiangsu


Number of Employees 1,600


Ownership Public,

Capacity of soda ash 1.2 million tons


Other main products Calcium chloride, sodium bicarbonate

Export ratio 25-40%

Website www.lygsoda.com

Commercial factors

International sales team size Small team


INCOTERM (for containers) FOB China port/CFR (only for good relationship)

INCOTERM (for bulk vessel) FOB China port/CFR (only for good relationship)

Nearest sea port for containers Lianyungang port 20km

Nearest sea port for bulk vessel Lianyungang port 20km




Technology factors



Environmental management system Lianyungang city award

Industrial salts source Brine or imported salt

Limestone source Tendering

Energy source Coal



The locations of Lianyungang Soda ash Co., Ltd and nearest main ports



1. Highest ratio for export among Chinese soda ash

producers

1. The supply of limestone is not fully controlled by

the company

2. The closest soda ash plant to the port. 2. Brine is not enough to support whole production

3. Independent from Sinopec, sales strategy and

payment term become more flexible

3. International sales team is lack of hands

4. International sales team is active, open to discuss

all the terms

4. The capacity is smaller than another two main

competitors

5. Good quality management system


1. Open to discuss the payment term and cooperation

method

1. The production site was planned for relocation,

perhaps will affect the production

2. Labels can be printed as the client requirement

2. Sometime, the company does not have enough

cargo for export

3. Large volume and long term client can get special

discount

3. Environmental protection will affect the supply of

limestone

Summary:

1. Lianyungang soda ash Co., Ltd is the nearest soda ash plant to sea port, and the ratio of export is highest among

Chinese soda ash manufacturers and also she is the TOP 3 soda ash exporter.

2. After separated from SINOPEC, Lianyungang Soda Ash becomes more active and flexible for market development

and customer service. But as the team size is small, they only offer CFR INCOTERM to good relationship clients.

3. Here is a possibility that Lianyungang Soda ash will be relocated, perhaps it will affect the regular production.

4. As Lianyungang soda ash rely on purchasing limestone and industrial salt, so the fluctuation of raw material

market will affect the production cost of Lianyungang Soda ash.

Lianyungang Soda ash

Lianyungang port


Supplier 4 Shandong Haitian Bio-Chemical Co., Ltd.

Overview:

Shandong Haitian Bio-Chemical Co., Ltd was established in 2008, with 1.2 million tons capacity of soda ash, located in

Changyi Zone, Weifang, Shandong. The company is 100% owned by Jinjing Group, which is a glass manufacturer.

Jinjing Group will consume about 300,000 to 400,000 tons soda ash annually, so Shandong Haitian Bio-chemical Co.,

Ltd only has 800,000 to 900,000 tons capacity for sales.

Jinjing Group mainly produces ultra-white glass, off-line coated glass, online coated glass, sun film glass, color glass,

fire glass, automotive glass, low salt and heavy glass soda, light soda, baking soda and baking soda detergent, etc.,

mainly for the construction, automotive, solar, industrial products and other market segments to provide green,

environmental protection, energy saving, Safety and other differentiated products and services. Jinjing relying on float

and LOW_E glass advantages, vigorously develop downstream processing business, products are exported to Europe

and America, Japan and South Korea, Southeast Asia, Australia, the Middle East and hundreds of countries and

regions.


Basic Information

Production site (Soda ash)

Jinjing Road, Changyi Coastal economic Development

Zone, Weifang, Shandong




Ownership 100% by Jinjing Group

Capacity of soda ash 1.2 million tons


Other main products Calcium chloride, sodium bicarbonate

Export ratio Unknown

Website www.cnggg.cn

Commercial factors

International sales team size Big team


INCOTERM (for containers) FOB China port/CFR

INCOTERM (for bulk vessel) FOB China port/CFR

Nearest sea port for containers Qingdao port 180km

Nearest sea port for bulk vessel Longkou port 160km




Technology factors



Environmental management system Approved by the city

Industrial salts source Local suppliers

Limestone source Suppliers in the same province

Energy source Coal



The locations of Shandong Haitian Bio-Chemical Co., Ltd and nearest main ports



1.Mother company can consume about 30% capacity

to cover partly dairy operation cost

1. Only have 800,000 to 900,000 tons for the market

2.Enrich international market knowledge and

experience to supply multi-national companies

2. Environmental protection will affect the supply of

limestone

3. The employee number is smaller than other same

size manufacturer, the HR cost will be saved

4. Suitable distance to sea port and raw material

resource.


1. Package and labels can be made as the requirement

of client.

1. The booming domestic market will cause the

company to reduce the export volume.

2. Payment term is flexible,

2. Environmental protect perhaps will affect the

prouction and raw material supply.

3. very big potential to supply soda ash in large

volume and long term

Summary:

1. Shandong Haitian Bio-Chemical Co., Ltd should be a good supplier for soda ash procurement from China, as the

location is close to sea port and she has a good international sales team.

2. Although the capacity for sales is smaller than other main exporters, but we feel it is necessary to keep this

company as a main backup supplier.

3. The company has smaller size employee, it will bring her less cost in the future as the labor cost keep increasing in

China.

Shandong Haitian Bio-chemical

Qingdao port

Longkou port


Supplier 5 Tianjin Bohua Yongli chemical industry Co., Ltd.

Overview:

Tianjin Soda Plant is a large-scale state-owned chemical enterprise, which has about a century development history.

The 600 thousand tons soda expanding project of Tianjin Soda Plant started in 1985. It was the important national

fundamental construction which was authorized by the Planning Committee of China.

On December 18, 2005, the relocation and transformation project of Tianjin Soda Plant held the opening ceremony in

Tianjin Lingang Industrial Zone. The production of Solvay process in Tianjin Soda Plant was stopped on October 6, 2010,

and other productions in the old site were also shut down in October 2010. The trial production started in new

production site in August 2010, Polyformaldehyde, soda ash, n-butanol and iso-butanol and Ammonium chloride were

successively produced from Dec. 31, 2010. Octanol, sodium bicarbonate, agricultural ammonium chloride, industrial

ammonium chloride and soda ash dense, were successively produced from Apr. 28, 2011.


Basic Information

Production site (Soda ash)

No.3369 Bohai 10 Road, Lingang Economic Zone,

Tianjin Binhai New Area



Turnover in last year 1.7 billion USD

Ownership State-owned

Capacity of soda ash 800,000 tons

Actual output of last year 800,000 tons

Other main products N-Butanol, Octanol

Export ratio 50% as the turnover

Website www.tjsoda.com

Commercial factors





Nearest sea port for containers Tianjin port, 20km

Nearest sea port for bulk vessel Tianjin port, 20kg


Communication skill Excellent


Technology factors

Production process Combined-Soda process


Environmental management system Qualified by Tianjin city

Industrial salts source Sister company, domestic and imported salt

Coal gas Own plant

Energy source Coal

EHS accidents in recent two years Once


The locations of Tianjin Bohua Yongli chemical industry Co., Ltd and nearest main ports



1. Very close to the sea port, enrich international sales

experience

1. The capacity is not quite big, only 200,000 soda ash

light and 600,000 soda ash dense.

2. Long history manufacturer of soda ash, good

market reputation

2. High percentage of the exported soda ash is traded

from other manufacturers

3. The price is not quite competitive


1. Combined process, the cost will be low when the

by-product ammonium chloride is good.

1. When the domestic market is booming, the cargo is

not available.

2. The company will also trade other soda ash from

other manufacturers, well-known the market

situation.

3. International sales team is big and very professional

to provide excellent service

Summary:

1. Tianjin Bohua Yongli has a very good international sales team. All the terms such as payment term, package, label,

bulk vessel etc. can be negotiable.

2. As the capacity and price reason, their international sales team will also purchase other manufacturers’ cargo.

Because they are a main player in soda ash market, and state-owned company background, sometimes they can

get very good price, it is not bad to ask for quotation from them.

Bohua Yongli chemical

Tianjin port


Supplier 6 Dahua Group (Dalian Chemical industry Co., Ltd)

Overview:

Dahua Group(Dalian chemical industry Co., Ltd) has about 60 year history for soda ash production, the capacity is

800,000 tons using Combined soda process. She became public company listed in Shanghai B stock exchange in 1997,

Dahua group hold 63.64% share.

Dahua Group has 33 branch and subsidiary companies, total has 7000 employees, with sale revenue 535 million USD,

Export value 90 million USD. Main products are 300,000 ton Synthetic ammonia, 800,000 ton soda ash, 900,000 ton

industrial salt. The company owns a 2 million ton chemical port.


Basic Information

Production site (Soda ash) Songmu Island chemical park, Dalian




Ownership Dahua group 63.64%

Capacity of soda ash 800,000 tons

Actual output of last year 700,000 tons

Other main products Ammonium chloride

Export ratio Less than 10%

Website www.dahuagf.com

Commercial factors





Nearest sea port for containers Dalian port 60km

Nearest sea port for bulk vessel Dalian port 60km


Communication skill Normal


Technology factors



Environmental management system Qualified by the city

Industrial salts source Imported, domestic

Coal gas Own

Energy source Coal



The locations Dalian chemical industry of and nearest main ports



1. Very close to the sea port, enrich international sales

experience

1. Industrial salt cost is higher in North-east Area

2. Quality is good managed, the group has rich

experience for export

2. Capacity is only 800,000 tons, and they do not have

other big products, the sales revenue is not big




1. They will not offer for small volume orders

2. The company will also trade other soda ash from

other manufacturers, well-known the market

situation.

2. The supply is not stable, the cargo will not be

available if the market is tight

Summary:

1. Dahua group (Dalian chemical industry Co., Ltd.) is not a quite important player for soda ash export. Dahua group

has an IMP&EXP company to take care the soda ash export, but in many cases, they will trade other

manufacturers’ products.

2. As their production process is combined-soda process, so when the ammonium chloride market is good, we feel it

is necessary to ask for quotation from them.

Dalian Chemical industry

Dalian port


Supplier 7 Hubei Shuanghuan Science and Technology Co., Ltd

Overview:

Hubei Shuanghuan Science and Technology Co., Ltd was established in 1993, as the combination of the subsidiary

companies of Hubei Shuanghuan chemicals group, the subsidiary companies included soda ash plant, salt plant,

synthesis ammonium plant and power plant. She became the public company listed in Shenzhen Stock exchange

market from 1997. The company has 1.1million tons combined process soda ash in Yingcheng, Hubei. Hubei

Shuanghuan chemicals group holds 25.11% share and of Hubei Shuanghuan Science and Technology Co., Ltd

Hubei Shuanghuan chemicals group was controlled by Hubei Yihua group in 2006, and in 2011, Hubei Shuanghua

chemicals groups acquired 55% share of the soda ash company of Hubei Yihua, Chongqing Yihua to get 700,000 tons

Combined-soda process soda ash capacity. The total capacity becomes 1.8 million tons.


Basic Information

Production site (Soda ash) Dongmafang, Yingcheng, Hubei province



Turnover in last year 674 million USD totally, 483 million USD for chemicals,

Ownership 25.11% by Hubei Shuanghuan chemical group

Capacity of soda ash 1.1 million tons+0.7million tons

Actual output of last year 1.36million tons

Other main products Ammonium chloride

Export ratio Less than 10%

Website www.hbshkj.cn

Commercial factors

International sales team size N/A


INCOTERM (for containers) FOB China port CNY

INCOTERM (for bulk vessel) FOB China port CNY

Nearest sea port for containers Wuhan (River port) 120km

Nearest sea port for bulk vessel Wuhan (River port) 120km

Delivery in time ratio Will be affected by Changjiang river delivery

Communication skill Not good


Technology factors




Industrial salts source Own Salt mine

Coal gas Own

Energy source Coal and electronic power



The locations of Hubei Shuanghuan Science and Technology Co., Ltd of and nearest main ports



1. Biggest combined-soda process manufacturer,

supported by local government

1. Far away from Sea port, need to transfer by River,

the lead time is 30 days longer than seaside

manufacturers

2. Own salt mine, very low raw material cost.

2. Not able to get the quotation in USD directly, have

to purchase through trading company




1. The company was running at a loss in last two

years, mainly caused by real estate business unit,

caused the financial risk

2. Changjiang river transport cost is not quite high, it is

possible to get a competitive price

2. The market price might fluctuate during the

delivery, as it will take additional 30 days.

3. If the regular order can be expected, a warehouse

in Shanghai might become the solution to reduce

delivery time

Summary:

1. Hubei Shuanghuan Science and Technology Co., Ltd have the largest capacity of combined-soda process soda ash,

and she has the geographical advantage to sell in middle of China.

2. It is very difficult to purchase in USD from the company it looks like they do not have too much experience for

export.

3. It is important to find a good trading company to cooperate the procurement of soda ash from Hubei Shuanghuan,

the saving of freight cost and large volume discount might cover the margin of trading company.

Shuanghuan Science and Technology

Wuhan port


Supplier relationship management

Supplier name Ranking Daily management

Shanghai Haihua Company Co., Ltd Key supplier 1. Send inquiries each time

2. Regular communication for market situation

3. Regular orders to maintain the relationship

4. Develop personal relationship

Tangshan Sanyou chemical

Industries Co., Ltd

Key supplier 1. Send inquiries each time




Lianyungang Soda ash Co., Ltd Key supplier 1. Send inquiries each time




Shandong Haitian Bio-Chemical Co.,

Ltd.

Important supplier 1. Send inquiries regularly

2. Place the order when the price is competitive

3. Regular communication and good relationship

Tianjin Bohua Yongli chemical

industry Co., Ltd.

Important supplier 1. Send inquiries regularly

2. Place the order when the price is competitive

3. Regular communication and good relationship

Dahua Group (Dalian Chemical

industry Co., Ltd)

Normal supplier Regular communication, check the price level

Hubei Shuanghuan Science and

Technology Co., Ltd

Normal supplier Regular communication, check the price level,

Lianyungang Debang Chemical

Industry Group

Backup supplier Pay attention to the relocation status, planned

restart the production in 2019

Shihlien chemical industrial

(Jiangsu)

Backup supplier Communication for export possibility and keep

updating the price level

Notice:

1. The e-mail addresses of the suppliers were provided as basic information of the company, but we cannot

guarantee you will be able to receive the quotation if you send inquiries to those e-mails. Because of the language

problem, sales region workload or other reasons, the sales team will not reply the inquiries.

2. The report is designed to be an instruction for purchasing soda ash from China. It is written by a Chinese native

sourcing expert who has already engaged in the soda ash market for several years, the report contains all

necessary information for procurement.

3. All the figure sourced from public data base, annual reports, governmental reports ect., we hold the neutral

position for all the suppliers. But as the writer is an experienced expert, he or she also has personal favorite

suppliers, must have good experience and bad experience for those suppliers, we feel those experience will be

helpful for your business, so please only treat our comments of the suppliers as a reference.

4. Each company has her own business models, just one report will not become the solution of your business in

China. So if you need further engagement, please contact us.

Date post:	13-Oct-2019
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