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Challenges and Strategies for Chemical Parks in China

China`s approximately 600 chemical parks are currently in a situation that at first glance seems quite enviable. As the government has mandated the relocation of chemical production into chemical parks and imposed tight deadlines, attractive chemical parks get a large number of enquiries from potential tenants. As a consequence, they can afford to be selective. On average, many accept only 30-40% of all applications, and this figure can go down to as low as 10% in specific locations. Some provinces have set up high entry barriers for allocating space in chemical parks, e.g., Shandong province asks for a minimum investment of 300 million RMB for production of hazardous chemicals.

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Kai Pflug
CEO of Management Consulting – Chemicals
Dr. Kai Pflug is a chemist by educational background. After obtaining a Ph.D. in chemistry and a master in economics, Dr. Pflug first worked as an R&D chemist for five years before moving into management consulting. In 2000, he joined the chemical practice of Arthur D. Little in Germany as a consultant. In 2004, he moved to Shanghai for a niche consulting company, working as their Vice President APAC and establishing a representative office for them. Since 2009, he has been the head of his own consulting company, Management Consulting – Chemicals. The firm exclusively focuses on the chemical industry in China, covering topics such as strategy, marketing, target search and M&A. In his 15 years of living in Shanghai, Kai has conducted more than 100 consulting projects for a multitude of clients from the chemical industry. In addition, Kai has authored more than 200 papers, the majority of which cover some aspect of the chemical industry in China.
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