KPMG examines the nature and unique character of Chinese chemical companies — not by looking at the powerful state-owned enterprises (SOEs) that have made their mark internationally, but by focusing on the more
low profile, yet incredibly strong, players in the industry.
These ‘local champions’, both state-owned and private, are influential, have large economies of scale, can innovate and upgrade, and harbour aggressive overseas ambitions.
Along with setting up mega production bases and expanding their product range in an integrated manner, Chinese companies have begun to innovate and are swiftly incorporating technological changes into their production processes. Enterprises have also shifted their priority from production to brand management and are in the process of internationalising their businesses. A number of companies are keenly promoting their brands in the global market and are continuing to examine overseas investments and acquisitions.
In fact, it can be said that overseas investments have now
reached a turning point. Earlier, large Chinese petrochemical
companies showed a tendency to be audacious, targeting big-ticket acquisitions. This trend has changed recently, with companies now considering mid-cap foreign assets, which will provide them with specific technology and international marketing networks.