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Ethylene oxide: urgent need to extend the industrial chain
China's ethylene oxide and its deep processing industry are currently experiencing rapid growth. The market for ethylene oxide-based specialty chemicals is vast, offering significant opportunities for technological upgrades and the application of advanced innovations. This versatile chemical serves not only traditional industries such as textiles, papermaking, and petrochemicals but is also increasingly being utilized in high-tech fields like nanotechnology and life sciences.
**Accelerating Industrial Restructuring**
By 2006, China’s ethylene oxide production capacity reached 1.8 million tons, with a trade volume of 500,000 tons. Although ethylene oxide itself is not typically imported over long distances, imports of derivatives like ethylene glycol and fine chemicals have surged, reaching 4.06 million tons that year, with an import dependency rate of 72.3%. Currently, ethylene oxide is mainly used to produce ethylene glycol and non-ionic surfactants, with about 70% allocated to ethylene glycol. Compared to developed countries, China still lags behind in the structure, technology, and application of ethylene oxide-derived products, especially in high-value areas. To address this, the industry must accelerate downstream development, enhance technological capabilities, and expand the application of fine chemicals. This will not only meet domestic demand but also promote the formation of high-efficiency, specialized petrochemical clusters.
**Building Industry-Academia-Research Synergies**
To drive innovation and industrial upgrading, the ethylene oxide sector should foster collaboration between enterprises, research institutions, and universities. A notable example is the Aoke Group, which has established multiple R&D centers and post-doctoral platforms. Over the years, Aoke has made significant breakthroughs in ethylene oxide-derived products, including polyethylene glycol, oilfield emulsifiers, and other specialty chemicals. The company has secured numerous national patents and is recognized for its innovative technologies. With a production capacity of 80,000 tons per year, Aoke has become a leading player in China’s ethylene oxide industry.
**Driving Market Innovation**
For domestic companies, continuous product innovation is crucial. A good example is the development of photovoltaic crystalline silicon cutting fluid, a green energy-related product essential for solar cell manufacturing. By 2020, China aimed to install 30GW of photovoltaic capacity, yet the reliance on imported cutting fluids was a major challenge. Aoke successfully developed its own high-performance cutting fluid, reducing import dependence and cost risks. In 2007, the company received approval for a 30,000-ton-per-year project, supported by the National Development and Reform Commission.
In summary, the ethylene oxide industry in China holds great potential. With strategic planning, technological advancement, and collaborative efforts, it can achieve sustainable and high-quality growth, strengthening its position in both domestic and global markets.