Soda Ash Industry Overcapacity Intensified

In 2009, the financial crisis and the dual pressurescountry after the United States in the outbreak
of excess production capacity, China's soda ashof the financial crisis began, and soda ash exports
industry, heavy losses losses of large enterprisesranked second in the world, China launched a full
up to a billion dollars, mid sized losses of up tofledged competition, the United States to take
thousands of yuan, the small business losses aremeasures to cut prices to expand market share,
over one million yuan. With the advent of the newwill also result in China's exports this year's Soda a
year, the financial crisis on China's soda ashgreater impact. In addition, the European Solvay
industry, adverse impact is gradually decreased,companies joined the battle for the Asian market
but industry wide overcapacity problem still worse.in 2009, began a large scale exports to Asia soda
Therefore, China Soda Industry Association viceash.Wang Xiling said that this year with the full
president and secretary general Wang Xiling, saidrecovery of the national economy and the
in an interview, and strictly control the productioncontinued growth of GDP, the domestic soda ash
capacity and maintain market stability soda ashconsumption will increase more than in 2009, the
industry is facing this year's top priority.average selling price will be higher than in 2009. "If
According to Wang Xiling introduced in 2009,we can properly control the total amount of
China's soda ash production capacity has reachedlosses in the whole industry will be much
24 million tons, output is expected to more thanimproved; and if controlled properly, the possibility
19 million tons, the domestic demand for soda ashof some loss making enterprises continue to
is not expected to more than 17 million tons andgreat."
export volume of more than 200 million tons,To this end, Wang Xiling pointed out: "soda ash
throughout the year, five million tons productionindustry, this year's idea is to control the amount
capacity idle. "Even if there is no financial crisis, theof work, reduce losses, as far as possible to 80%
soda ash industry, the problem of excesscapacity to play around in order to ensure a basic
production capacity will be completely exposed inbalance between supply and demand. This will
2009." Wang Xiling, said in 2010 the domestic sodarequire industry support and cooperation of large
ash industry, new capacity will be nearly 200enterprises. Association hope that large scale
million tons, while demand is also the mostbackbone enterprise in which a good location (near
optimistic estimates of the about 18 million tonsthe energy, raw materials and convenient
and export volume will be 200 million tons, sodatransportation origin) and enterprises as well as
ash industry overcapacity situation will worsen.equipment, technology and management with high
Wang Xiling analysis, soda ash exports this yearlevels of three types of enterprises are able to
will be further constrained, export volume isconsciously control the production capacity,
expected to be reduced by 30 million tons. He toldmaintain the no loss and have a small amount of
reporters, October 6, 2009, Indian Ministry ofprofit the same time, price stability conducive to
Finance issued the final ruling notice originating inthe survival of the fittest industry. "
China decided to impose a 20% soda ash specialAccording to Wang Xiling introduction, soda ash
safeguard measures for tax, tax period fromassociations, in the drafting of a "soda ash
April 20, 2009 to 2010 4 19. The Indian side willindustry, access conditions," (draft), production
also after the expiry of the current round oflayout plans, project scale, energy saving emission
special safeguard measures to apply for anreduction, product quality, many aspects such as
extension, which will lead to this year, Chinasoda ash project for new and existing enterprises
exported to the Indian soda ash substantiallyto improve Soda standards in order to curb
reduced.excess production capacity of soda ash industry,
Turkey, an annual output of 1 million tons of sodaand continued expansion. At present, the
plant has also been put into production, becausecombination of soda ash Association is up across
of its close distance from the Middle East, sodathe country summarizes the views of the "soda
ash exports to China posing a great threat in theash industry, access conditions" for further
Middle East. As the world's first soda ash exportmodification and improvement.