decreased output due to falling demand from export markets in the US and Europe,” reported Tony Shi, Export Sales Manager, Hongbaoli. Despite the reported slowdown, raw material manufacturers consider the current level of annual production to be sustainable, due to replacements, upgrades, and the growing rural market within China. “There are approximately 400 – 500 million households in China and the market can be divided roughly into one third new urban dwellers, one third rural households, and the remaining third replacement,” explained Peter Huo, Director Global Business Development, Yantai Wanhua. “A fridge may use an average 0.5 kWh per day, costing about USD 2 per month to run, but it prevents a much greater value of food from being wasted,” he continued. The development of the cold chain has been seized upon by Dow Chemical and its technology partner Cannon, who have recently launched Pascal technology, which among other benefits has helped Chinese appliance giant Haier to produce a household refrigerator that is 10 % more energy efficient than standard models currently available (see p. 282 f in this issue).
Construction markets face problems The Chinese government is continuing to restrict credit for mortgages as the country faces huge increases in property prices and rental costs. In urban areas, rent accounts for more than 70 % of disposable income, which also has the effect of reducing the amount of money available for other consumers and food. “The Chinese government are unlikely to allow the housing bubble to burst,” suggested Erman Tan, CEO, Asia Polyurethanes. “If the bubble were to burst like in the US, this could lead to a lot of social unrest. I am confident that the Chinese government will do all they can to avoid such a situation, I do not expect they will allow the housing bubble to be a major threat to social and economic development.”
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China’s construction expenditures alone are expected to rise at 9.1 % per year through to 2014. This rapid development means that the savings potential which can be realised by effective building insulation materials is critical both in order to meet the country’s target on carbon dioxide emission and energy consumption set in its 12th Five Year Plan. Dr Joachim Wolff, Head of Polyurethanes, bMS
China uses 25 % of its energy for buildings heating and cooling, which is lower than in the US, but even so the government wants new buildings to use 10 % less energy than the current building stock. “In China, PU accounted for an estimated CNY 700 million of sales, but this is small considering the total insulation market in 2010 was around CNY 32 billion,” Owlia explained. Renewable energy is also a focus for many countries in Asia, with China home to some of the world’s leading manufacturers. “The Chinese solar power industry used 30 – 40 kt of MDI for insulating hot water tanks last year, but increased market penetration has slowed the growth in demand. In Shandong province alone, the market is already 80 % saturated,” stated Wenping Zhang, Supply Chain Manager, Yantai Wanhua.
Public Security has placed an interim ban on the use of polyurethane foam in all new buildings. As a result, the PU industry has joined forces to lobby the Chinese and other Asian governments regarding the benefits of using rigid PU foam as an insulation material. Many governments have set targets to reduce energy consumption in buildings over the next 5 – 10 years, and these will not be achievable without adequate insulation. The growing production PIR boardstock and the recent market entry of Invista’s range of aromatic polyester polyols may eventually help to overcome concerns over flammability. “The production of higher index foams which offer better FR properties are harder to process and create technology challenges for which Air Products can provide solutions with new additives,” said Steve Hulme, Global Marketing Manager, Polyurethane Chemicals, Air Products. As far as SPF is concerned, the global transition from 141b has been slower than expected and slowed the promotion of new additives developed for the next generation of blowing agents. In response to these concerns, many of the leading system houses, including Bayer and BASF have already developed spray foam systems that meet class B1 fire standards. Officials have also visited sites in the US and Europe to see best practices and experience the energy savings that can be created when rigid foam insulation is correctly used. toni Shi, Export Sales Manager, Hongbaoli
SPF faces an interim ban Following a fire at a Shanghai block of residential apartments in which more than 50 people died, the Chinese Ministry of
PU MAGAZINE – VOL. 8, NO. 5 – OctObEr/NOVEMbEr 2011