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China's industrial gas output will reach 100 billion
At the 2006 China Industrial Gas Forum held on the 13th, industry experts predicted that by 2016, China's industrial gas output would reach 100 billion yuan. This forecast highlighted the rapid growth of the sector, which has been expanding steadily since the early 2000s. In 2005 alone, the value of China’s industrial gas production was approximately 36 billion yuan, representing 8% of the global market—a significant increase from just 2.7% in 2003. Between 2003 and 2005, the domestic industry grew at an impressive annual rate of 65%, far outpacing the global average of 12%.
Currently, about 53% of the gas consumed in China is produced domestically. Some local companies have developed strong financial capabilities, advanced project management skills, and modern business strategies, enabling them to compete effectively with international players in large-scale projects. However, many smaller firms still lag behind, operating with limited scale, inadequate safety measures, low investment in technology, and unprofessional practices. These weaknesses make them vulnerable to market fluctuations or potential safety incidents, which could lead to closures.
Experts estimate that by 2016, China’s industrial gas output will grow at an annual rate of around 10%, reaching 100 billion yuan. To ensure sustainable development, industry leaders warned manufacturers against making key mistakes. First, following trends without innovation can lead to overcapacity, price drops, and reduced profits. Second, unclear market positioning may result in poor customer targeting, as different industries require customized products and services. Third, focusing too much on production while neglecting sales can be detrimental, as selling industrial gases requires specialized knowledge and a strong marketing strategy. Finally, cutting costs on safety measures is risky—security accidents not only harm individual companies but also damage the reputation of the entire industry.