Fluorine Industry Transformation Needs Multi-Stakeholder Cooperation

The fluorine industry, often referred to as the "golden industry," is one of the key sectors in the new chemical materials sector. Known for its exceptional properties like chemical resistance, thermal stability, and excellent insulation, fluorine-based products find extensive applications across the military, chemical, and mechanical industries. This has positioned the fluorine chemical industry as a rapidly growing and highly promising field within the broader chemical sector. The "12th Five-Year Plan for the Development of China's Fluorine Chemical Industry" set ambitious targets, aiming for a total production capacity of 4.5 million tons of various fluorine chemical products by 2015. Additionally, the plan aimed to boost the share of mid-to-high-end products to 20% and achieve a total industry output value of 150 billion yuan. Despite its rapid growth, China's fluorine chemical industry has faced several challenges. With over a thousand fluorine-related enterprises, the country has established a comprehensive industrial chain covering fluoroalkanes, fluoropolymers, inorganic fluorides, fine fluorine chemicals, and processed fluorine materials. Products such as aluminum fluoride, fluorinated aluminum, PTFE, HCFCs, HFCs, and fluororubber are produced at some of the highest capacities globally. However, outdated technologies and insufficient innovation capabilities have led to issues like redundant low-level construction and disorderly production capacity expansion. These inefficiencies have resulted in excessive resource consumption, particularly of fluorspar, jeopardizing the industry's long-term sustainability. Many enterprises are clustered at the upstream end of the supply chain, leading to an imbalance between the volume of basic fluorine products and the demand for advanced solutions. To meet the goals outlined in the 12th Five-Year Plan, the fluorine chemical industry must prioritize transformation, optimization, and innovation. This includes addressing structural imbalances, promoting industrial upgrading toward refinement, lightweighting, compositing, and sustainable practices like circular economies. One critical step is enhancing coordination through industry associations to develop rules and policies tailored to China’s unique circumstances. Addressing current constraints like industrial policies, environmental regulations, and trade dynamics is essential. Additionally, efforts should focus on phasing out outdated processes and products that lead to poor-quality outputs and environmental harm. Investing in technological innovation, fostering skilled talent, and implementing supportive policies to encourage high-end and specialized development are crucial. Park development should be scientifically planned to optimize resource utilization and foster complementary partnerships. Aligning with global scientific frontiers, the industry should focus on developing eco-friendly refrigerants, PTFE, PVDF, and other fluorine-based fine chemicals while expanding the product range and extending the industrial chain. Fuxin City in Liaoning Province, often considered the birthplace of China's fluorine industry, boasts four decades of experience. The city’s fluorine industry development plan leverages local strengths in location, resources, and technology to prioritize mainstream fluorine products like fluoroalkanes and fluoropolymers while supporting the development of basic chemicals and fine fluorine products. The 20-square-kilometer Fuxin Fluorine Chemical Industry Base has seen steady progress in infrastructure and attracted notable domestic and international firms. High-end fluorine products, including eco-friendly refrigerants and specialty chemicals, are now entering the market. While the domestic fluorine chemical industry has seen slower growth this year, Fuxin remains optimistic about its potential. The city's new fluorine chemical projects continue to thrive despite industry-wide challenges, with main economic indicators showing growth rates exceeding 100%. As Fuxin charts its path to becoming a trillion-yuan fluorine hub, its innovative approaches and strategic vision offer valuable lessons for others navigating similar transitions.