Cultivating Billion-Dollar Enterprises: HaiKou Industrial Park’s Three-Year Breakthrough Plan

In July of this year, Kunming city introduced the ‘Opinions on Implementing a Three-Year Action Plan for Industrial Breakthrough’ which set the following goals: ‘The total industrial added value will exceed 180 billion yuan, with an average annual growth rate of over 15%, and the added value of large-scale industries will exceed 160 billion yuan, with an average annual growth rate of over 18%.’ How does the industrial park integrate its own situation to implement the spirit of the document? Recently, the HaiKou Industrial Park has reviewed the current development of the industrial industry, and has clearly stated its ambition to strive for the cultivation of two 1-billion-level enterprises within three years, creating new economic growth points.

As the times evolve, technological innovation has gradually become a driving force for various industries, and industrial development is no exception. In September 2016, the first phase of the VAE water-based adhesive project of Yunnan Zhengbang Technology Co., Ltd. was completed and put into production, with a designed annual production capacity of 120,000 tons of environmentally friendly vinyl acetate-ethylene copolymer emulsion, mainly used in industries such as construction, waterproofing, coatings, and furniture. Compared to similar domestic facilities, this facility has higher equipment and automation levels and outstanding environmental advantages. It has achieved multiple records in the industry since its operation for over a year and has six product varieties leading the industry.

The company attaches great importance to technological innovation. In August 2014, the company initiated the construction of a research and development center, with an annual research and development investment of about 5% of sales revenue and the employment of five experts from countries such as Germany and the United Kingdom for guidance. Currently, the research and development center has reached an agreement with the China PVC Information Center and serves as a third-party testing and evaluation unit for more than 20 customers in the VAE emulsion and PVC industries, providing technical services such as product testing and functional evaluation. This year, the company expects its industrial output value to grow by about 8.6% compared to the same period last year.

Data shows that from January to July this year, the total output value of large-scale phosphorus chemical enterprises in HaiKou Industrial Park reached 5.022 billion yuan, accounting for 72.8% of the total output value of large-scale industries in the park. “For many years, the phosphorus chemical industry has been an important driving force for the overall economy of the park. In the new situation, the phosphorus chemical industry should be upgraded to form characteristic products and enhance competitiveness,” said Bi Hong, Deputy Director of the HaiKou Street Office.
As she said, phosphorus chemical enterprises are indeed in need of transformation. Yunnan Phosphorus Chemical Group HaiKou Phosphate Industry Company, which is dedicated to the development of the phosphorus industry chain and specializes in the production and sale of fine phosphorus chemical products such as phosphoric acid and fertilizers, pointed out that the fertilizer industry is currently in a downturn, with oversupply of basic fertilizers and low prices, posing significant challenges to the entire industry. To address this issue, Yunnan Phosphorus Chemical Group HaiKou Phosphate Industry Company has improved product quality and economic efficiency through project technological upgrades.

In terms of project technological upgrades, at the beginning of the year, the company implemented a sulfur fertilizer project using advanced Israeli production technology, transforming the use of DAP equipment to produce sulfurized monoammonium phosphate. The product can achieve uniform absorption and long-term release of various nutrients, with a golden ratio distribution of elemental sulfur and sulfate ions, thereby meeting the nutritional needs of crops throughout their growth cycle.

In terms of business models, the company has implemented the strategies of ‘increase special fertilizers and reduce general fertilizers’ and ‘produce according to sales’ to tap into the market for specialty fertilizers and fine phosphorus chemical products. In August of this year, they initiated a project to produce 70,000 tons of food-grade phosphoric acid, using advanced Israeli chemical phosphoric acid purification technology. After production, it will be the first set of equipment in Yunnan Province to produce food-grade phosphoric acid from fertilizer-grade phosphoric acid as raw material, with an estimated annual sales revenue of about 490 million yuan and a total tax revenue of 89 million yuan, forming industrialized technology for wet-process phosphoric acid refinement and production of food-grade phosphoric acid, thereby improving the overall development level of the phosphorus chemical industry in Yunnan Province.

What’s important is that, in response to the weak demand in the general fertilizer market, Yunnan Phosphorus Chemical Group HaiKou Phosphate Industry Company has focused on specialty fertilizers with a large market scarcity, suitable for drip irrigation, and low heavy metal content. As of July this year, they have produced 28,000 tons of specialty fertilizers, achieving a cumulative total industrial output value of 777.886 million yuan, an increase of 47.8747 million yuan, a growth rate of 160%.

Visible results have been achieved in the company’s innovation and research and development. In order to encourage more companies to join the innovation queue, the park’s Party and Mass Service Center has established a dedicated intellectual property service station, and relevant consulting organizations have been stationed to provide intellectual property services to enterprises, enabling their sustainable development,” Bi Hong said. In addition to improving the phosphorus chemical industry, encouraging enterprise innovation, the park also aims to rapidly expand the new energy vehicle complete vehicle and supporting industries, biopharmaceutical industry, and new materials industry. At the same time, the development of the tertiary industry is being promoted to provide better development conditions for the secondary industry.”