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At the end of the last century, Shanghai Lianheng's production marked the official entry of foreign polyurethane companies into the Chinese market. Since then, the capacity of foreign-invested enterprises has steadily grown, becoming a significant portion of the total production capacity in key polyurethane products. As China’s economy flourished, these foreign firms quickly seized opportunities and expanded rapidly, reshaping the industry landscape.
Currently, in China, the production of high-tech and technology-intensive polyurethane products is still largely controlled by foreign companies. For example, in the MDI sector, foreign firms account for about 70% of the country's total production capacity, while TDI production is almost entirely dominated by multinational corporations. Despite this, foreign investment in China continued to surge in 2008, with major projects such as Bayer’s MDI plant in Chongqing, BASF’s alcohol expansion in Nanjing, and Dow’s glycol ether facility in Zhangjiagang. These developments highlight the growing presence of global chemical giants in the region.
Looking at downstream applications, although domestic foam manufacturers currently hold a strong position, foreign companies still offer superior product quality. In the spandex and TPU markets, foreign firms also control nearly half of the domestic market share. This dominance raises concerns among local players, as the increasing influence of foreign enterprises could eventually lead to market monopolization.
In response to this trend, many in the industry are worried about the long-term impact on China’s polyurethane sector. To reverse this situation, independent research and development has become the only viable strategy. Only through innovation and technological advancement can domestic companies gain a competitive edge and reduce reliance on foreign technologies.