China's demand for water treatment chemicals grows first Many multinational companies come to China to seize market share
The global water treatment chemicals market has reached $18 billion, and is projected to grow to $22 billion by 2010, according to a recent report from McIlvaine, as published in the Chemical Market Report. The report highlights that China is expected to be the fastest-growing market for water treatment chemicals in the coming years. It is anticipated that the average annual growth rate of China’s water treatment chemical sector will reach 9%, with power plant water treatment chemicals showing the highest growth.
This surge is driven by China's rapid increase in power demand, which has accelerated the construction of new power plants. Many of these new facilities rely on coal as fuel, which requires significantly more water treatment chemicals compared to gas-fired plants. Specifically, a coal-fired power plant turbine typically requires four times the amount of water treatment chemicals as a gas-fired one. According to reports, power plants currently account for about one-third of the Chinese water treatment chemicals market, and this segment is expected to double in value over the next decade. As a result, China is likely to become the world’s largest market for power plant water treatment chemicals.
Due to this strong demand, numerous international water treatment chemical companies have increased their investments in China. In January of this year, Calgon Carbon established an activated carbon production and packaging facility in Tianjin. Meanwhile, Kemira plans to invest USD 8.35 million in a new pulp chemical production plant in Yixing, Jiangsu, boosting its polyaluminium chloride production capacity from 120,000 tons per year to 150,000 tons per year.
Additionally, as China’s urban population continues to rise, the pressure on water supply infrastructure has become more pronounced. Public water supply systems are struggling to meet demand, raising concerns about water security. A notable incident occurred last November when an explosion at Jilin Petrochemical Company’s aniline plant released over 100 tons of benzene into the Songhua River, causing severe pollution downstream. This led to a five-day water shutdown in Harbin and contamination of the river extending into Russia. Following the crisis, both countries used activated carbon for water purification.
Moreover, China’s secondary wastewater treatment capacity is expanding rapidly, creating significant opportunities in the market for separation and sedimentation equipment. These technologies are primarily used for wastewater treatment. Additionally, cross-flow filtration membrane technologies such as reverse osmosis, ultrafiltration, and microfiltration are expected to see widespread adoption across various industries in China.
The growing demand for water treatment chemicals in China has attracted major multinational corporations like GE, Nalco, and Rohm and Haas, who are now competing with local firms to capture a larger share of this booming market.
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