Under the background of the rapid development of China's chlor-alkali industry and the oversupply of the market, the northwestern region relied on its abundant resources to expand its caustic soda project. From 2007 to 2008, the new production capacity of caustic soda will reach 2.81 million tons, accounting for 30.9% of the country's energy expansion. This is the news that the reporter got from China Chlor-Alkali Industry Association on May 10th.

In recent years, China's chlor-alkali industry has developed rapidly. In 2001, it began a new round of growth cycles. In 2006, the production capacity of caustic soda was 18.1 million tons, a year-on-year increase of 23%, and the output of caustic soda was 15.12 million tons, ranking the first in the world. However, China is still far from a caustic soda producing country, and there are unfavorable factors such as overcapacity, increased competition, and excessive energy consumption. In spite of this, driven by the rapid growth of downstream alumina and other industries, domestic demand for caustic soda has been strong in recent years. The market is booming and prices are steadily rising. Newly-built or expanded caustic soda projects have been established in various regions, and expansion will be concentrated in the release of this year and next year.

According to the relevant person in charge of the China Chlor-Alkali Industry Association, it is expected that in 2007 and 2008, China's caustic soda production capacity will reach 23.71 million tons and 27.19 million tons respectively, and the energy will be expanded by 9.90 million tons in two years. Of these, 2.81 million tons are concentrated in the northwest region where natural resources such as coal, oil, gas, and salt are abundant, accounting for 30.9% of the country's energy expansion. Major new caustic soda production capacity includes 400,000 tons of Inner Mongolia Yili Chemical Industry Co., Ltd., 360,000 tons of Zhonglan Jilantai Salt Chemical Group Co., Ltd., 100,000 tons of Xinjiang Zhongtai Chemical Co., Ltd., and 320,000 of Xinjiang Tianye Co., Ltd. Tons and Ningxia Intime Chemical Co., Ltd. 100,000 tons and so on. In 2007 alone, the new caustic soda production project in the northwestern region had accumulated 900,000 tons, and the production capacity was 2.46 million tons, accounting for one-sixth of the country's total. It will become the major manufacturing base for China's caustic soda industry.

It is understood that the state will adopt macro-control to curb the rapid growth of high energy-consuming products such as alumina and caustic soda, and formulate more stringent conditions in energy conservation and environmental protection. However, some local governments are keen to start a caustic soda project driven by economic interests. Even if they want to withdraw, they are still riding hard, which leads to rapid growth of caustic soda production capacity. To this end, the China Chlor-Alkali Industry Association in cooperation with the National Development and Reform Commission is drafting new conditions for the entry of polyvinyl chloride and caustic soda industries, raising the threshold for entry to control the new capacity of caustic soda and eliminating backward technologies.

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