OverviewChemConnect China Established
End-to-end chemical e-commerce now a reality in China as ChemConnect partners with China Chemical City on the Internet
San Francisco, CA (July 2, 2001) – ChemConnect Inc., the company that provides the only end-to-end e-commerce solution for buyers and sellers of chemicals and plastics worldwide, today announced that it is partnering with China Chemical City on the Internet (CCCOI), a Chinese online exchange with 20,000 members, to establish ChemConnect China. Already the world's leading online marketplace for chemicals and plastics, ChemConnect now also becomes one of the industry's only global capabilities B2B company offering buying and selling opportunities to, from, and within, the $81.7 billion a year Chinese chemicals marketplace.
Originally established by the China National Chemical Information Center, CNCIC, which has worked hard to "digitalize" the country's B2B capabilities and help increase industrial competitiveness, CCCOI's supply and demand database is the country's largest, with 10,000 chemical products represented. With the Chinese buyers and sellers joining, ChemConnect will have over 40,000 Members worldwide, who can meet in an open, independent marketplace to find new business partners, negotiate purchases and sales, and complete their order fulfillment through Envera's automated business processes and systems integration.
"Through this agreement, third-party chemical buying and selling opportunities, within, to, and from China will be e-commerce-enabled, " said John Robinson, ChemConnect CEO. "And it took ChemConnect—the only company with the infrastructure, experience, trading models, back-end fulfillment, and liquidity—to get it done."
"This partnership will allow our companies to continue successful growth together," said Li Zhong, CCCOI CEO. "We will now be able to take full advantage of e-commerce opportunities, and provide our Chinese members with an entry into the worldwide chemicals market with e-commerce capabilities across the entire supply chain."
"We expect that our Asian Members will be the first to benefit from this partnership. Intra-Asian trading with Chinese companies from Korea, Japan, and India already accounts for nearly $19 billion a year," said Brian Selby, ChemConnect Vice President Asia. "And U.S. fine and specialty chemicals manufacturers, who already sell $300 million a year worth of products into the Chinese marketplace, will almost certainly be among the first to get maximum benefits from these new opportunities."
Chinese Chemicals Industry
According to the China Customs Office 2000, China annually imports about $3.7 billion worth of U.S. products alone, including agrochemicals, petrochemicals, industrial surfactants, and raw materials for pharmaceutical production.
The development of the fine and specialty chemicals industry, a priority for the Chinese government since the mid-1980s, forms the basis of other industrial growth, in areas including agriculture, health care, and electronics. The growth of the Chinese chemical industry—now more than $7 billion a year— was spurred by the lapse of European and North American patents on a wide range of products, including pesticides, dyestuffs, pigments, coatings, reagents, sensitive and magnetic recording materials, food and feed additives, adhesives, catalysts, and specialty additives and medicines. However, because of the size of the Chinese market, and with steadily increasing demand for high-quality, high-tech chemicals, internal production meets only an estimated 35% of need. As a result, the government has established favorable tariffs (17% on fine chemicals versus 23% on other chemicals) and investment incentives to increase imports and attract more foreign investment.
About CCCOI
CCCOI is a B2B trade portal, whose Chemical Supply & Demand Database is the largest in the country, covering more than 20,000 chemical companies, and 10,000 chemical products. The database is rich in chemical business information resources, with a large customer base, an expansive sales network, and local expertise. The company's headquarters are in Beijing, with offices in Nanjing, Zhengzhou, Changsha, Jinan, Guangzhou, and Washington D.C.
For more information, please contact:
Bob Osmond
UpStart Communications
(510) 457-3111
bosmond@upstart.com
Liz Youngs
UpStart Communications
(843) 881-5751
lyoungs@upstart.com
Note to Editors: ChemConnect is a registered trademark of ChemConnect, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.