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Soda ash Industry: Reducing Cost and Increasing Efficiency through Scientific and Technological Innovation

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[Abstract]:
Relevant Chinese enterprises have to reduce cost and increase efficiency through scientific and technological innovation so as to enhance their competitiveness in the international market.

Statistics show that by the end of 2018, the global production of soda ash was about 55 million tons / year. China's output of soda ash is expected to reach 31.69 million tons this year, with an annual consumption of 26 million tons and a capacity utilization rate of over 90%. However, there is still a certain gap in the cost control and environmental governance between relevant Chinese enterprises and those enterprises in developed countries.

In recent year, soda ash industry shows a relatively good development trend, but still faces great challenges in various aspects. The first challenge is cost challenge from international market. Turkey has decided to build a new natural soda ash project in the near future, when Turkeys production capacity will reach 10 million tons per year together with its original production capacity, and the soda ash produced by the natural soda ash process has a considerable competitive price advantage over China. It will pose a great challenge to the enterprises in China. The second challenge is the pressure of environmental protection. according to the requirements of the latest environmental emission indicators in China, most of Chinas enterprises failed to meet the requirement of environmental protection. In particular, China government is very strict on the emissions of tail gas and ammonia, which will be a major constraint on the survival of those domestic soda ash manufacturers who fail to meet the requirements ".

 

Soda ash is a high-pollution industry. Experts believe that, with the increasing pressure from domestic environmental protection, the backward heavy pollution capacity will be eliminated. In  light of the problem of excess capacity, high cost and energy consumption in soda ash industry, experts put forward three suggestions. First, in the face of the severe environmental protection situation, enterprises shall strictly control new production capacity and eliminate backward production capacity in the future; second, solve the problems of "three wastes" and exceeding the standard as soon as possible; third, reduce cost and increase efficiency, and improve industrial automation and intelligence so as to improve economic efficiency. Enterprises shall focus on the improvement of management level and core competitiveness, and strive to actively participate in international competition.

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