Looking at the problem of repeated construction in the chemical industry

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In the recent period of time, the dimethyl ether projects completed in various places have been successively followed. In Hubei, on June 18th, Tianmao Industry Group Co., Ltd. produced 200,000 tons of dimethyl ether plant annually. This is the first installation of the company's second-phase project with an annual output of 1 million tons of dimethyl ether. Prior to June 6, Jingmen Chuchu Chemical Co., Ltd. had an annual output of 100,000 tons of dimethyl ether project officially completed and put into production. Prior to this, Hubei Saning Chemical Industry Co., Ltd. had an annual output of 1 million tons of dimethyl ether, which has been filed with the Hubei Provincial Development and Reform Commission and is currently undergoing project preparation and EIA related preparations. In the country, the dimethyl ether project springs up one after another. Like dimethyl ether, many new and expanded traditional installations such as methanol, ammonium phosphate, sulfuric acid, caustic soda, and yellow phosphorus have also been completed and put into operation.
Some people say that this is a repeated construction, which will result in a new round of over-investment, overheated economy, and disorderly competition, resulting in waste of resources and should be stopped. Some people also believe that under the conditions of a market economy, it is unavoidable that the nature of competition leads to redundant construction. As a result, competition will become fiercer, the survival of the fittest will be eliminated, and resources will flow to enterprises with good operating performance and products that meet market demands. More reasonable, we should face it squarely. The author believes that the issue of repeated construction in the chemical industry should be viewed in a dialectical manner.
Repeated construction has high-level redundant construction and low-level redundant construction. Whether the product has a market or not is the only measure of repeated construction. The market for manufactured products is saturated, and the products provided by new investment companies are homogenous and indistinguishable from the products provided by existing companies. On the contrary, it is a high level of repeated construction. Different products with similar investment in the market do not belong to low-level duplicate construction. For example, both dimethyl ether, methanol, and ammonium phosphate are market products. The construction of these projects should be regarded as high-level duplicate construction. And some small synthetic ammonia, small calcium carbide, caustic soda, small yellow phosphorus, etc. are low-level repeated construction.
Judging from the classification of repeated construction, the repeated construction of these products should be a high level of repeated construction. Regardless of the type of redundant construction, fierce competition will be formed in the market economy environment. If there is only one enterprise in the market, it will be a monopoly. More than one enterprise will be duplicated, and duplication will result in competition. Without duplication, there will be no market competition. Under the conditions of market economy, we must have a new understanding of repeated construction. The point of not allowing duplicate construction is not in line with the laws of market economy. Under market economy conditions, the rationality of repeated construction with market competition and property rights constraints should be recognized. Competition is an important mechanism for the efficient allocation of resources by the market. Competition can regenerate economic motive power, people’s pursuit of interests is the original driving force, and pressures other than competition further strengthen people’s enthusiasm, creativity and enterprising spirit, and activate the vitality and vitality of the entire society. Competition will not only promote the advancement of enterprise technology and the development of productivity, but will also increase the speed of resource allocation, allow limited resources to be concentrated on efficient enterprises, and achieve a reasonable allocation of resources. Therefore, under the conditions of market economy, repeated construction has both advantages and disadvantages. From the point of view of high-level repeated construction of some chemical industries, it seems that the advantages outweigh the disadvantages. From the pros and cons of the dimethyl ether project, DME is recognized as the most promising new energy source for alternative oil prospects. Under the background of high international crude oil prices, the development of dimethyl ether industry has high economic benefits. However, at present, China's dimethyl ether production capacity has expanded at a faster rate and there are hidden risks of overcapacity. At the same time, the overall development of the dimethyl ether industry faces problems such as lack of standards, difficulty in sales, difficulty in raw material procurement, and high cost. Therefore, for some high-level repetitive construction projects such as dimethyl ether, the state must properly guide and promote the healthy development of these projects. For low-level repeat construction projects such as small synthetic ammonia, it is necessary to resolutely stop such projects. It is necessary to strengthen planning and policy guidance for these projects. Strict market access systems should be adopted. The examination and approval of land use should be strengthened in accordance with the law, and credit management must be strengthened to block low-level duplicate construction. Source.