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In October 2007, Chongqing Yihua Group's 600,000 tons/year alkali unit was put into operation. After the project was put into production, the group's soda production reached 1.4 million tons/year, among the top three in the nation's soda industry, with an annual output of 600,000 tons of ammonium chloride, 400,000 tons of light soda, and 200,000 tons of low-salt and heavy-weight sodium carbonate.
In June 2008, Shandong Haitian Biochemical Co., Ltd.'s 1 million tons/year soda project was completed and put into production. After the project is fully put into production, it can produce 400,000 tons of high-quality, low-salt and heavy-duty soda ash, 400,000 tons of ordinary heavy-alkali soda ash, and 200,000 tons of ordinary light-quality soda ash.
In November 2007, the first phase of Qinghai Soda Industry Co., Ltd. was expanded to 1.2 million tons per year. The second-phase annual output of 900,000 tons of soda ash production line is in the process of stepping up construction and will be completed and put into operation in the second quarter of next year. After the completion of the third-phase soda ash project in 2011, the annual production capacity of soda ash will reach 2.7 million tons, making it Asia's largest alkali industrial base. In August 2008, Qinghai Kunlun Alkali Industry Co., Ltd. started construction of an annual output of 1 million tons of soda ash, and it is expected to be completed and put into operation in 2010.
In the past two years, soda ash prices have soared, attracting large amounts of capital to enter the soda industry, and large-scale soda ash plants have emerged continuously. According to incomplete statistics, from 2008 to 2009, about 3 million tons of new production capacity will be put into production. According to the plan, a large number of new production capacity will be put into operation in the next two years. However, the financial crisis that erupted last year drove down the downstream industries of soda ash. In 2008, the increase in the total output of flat glass in the first downstream user of soda ash decreased by half year-on-year; the output of synthetic detergents decreased by 3.2% year-on-year; the increase in annual output of alumina decreased by 30 percentage points. Others such as non-ferrous metals, paper, pesticides, etc. have also slowed down the pace of development, soda ash industry suddenly appeared overcapacity crisis. According to statistics, in 2009, China's total soda ash production capacity exceeded 21 million tons/year, while domestic demand was expected to be only 16 million tons, and excess production capacity exceeded 5 million tons.
It is understood that with the successive production of the three major alkali plants in Weifang, Tangshan and Lianyungang in the 1990s, the development of the soda ash industry has maintained the same rhythm with the development of the downstream industry.
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