Metal manufacturing and processing are national pillar industries. Anything concerning metal material cannot go without industrial gasses. The demand for fuels will be more and more urgent. The industrial development of air conditioner especially central air conditioner and solar water heater all have increasing demands for gas welding. Besides, recent developed lead-acid battery, IC packaging and quartz glass cutting industry make the market prospect of industrial gasses more brightly.

Metal welding and cutting industry distribute mainly in northern coastal area. The new applied industry using industrial gasses such as lead-acid battery is rapidly developed in Pearl River Delta and Yangtze River Delta; large scale IC packaging industry distributes mainly in northern coast area, especially in Yangtze River Delta and in Beijing-Tianjin; pharmaceutical enterprises in Guangdong, Yunnan, Heilongjiang and Beijing-Tianjin-Tangshan; quartz processing near to quartz Mine Area. The four industries will push the increasing demand for industrial gasses.

According to the analysis of McKinsey Global Academy, under the current situation, by the year 2020, the energy demand in China will increase 4.4% per year, from 60 QBTU in 2003 to 124 QBTU in 2020; the energy consumption will reach one-third of the global volume and industrial fuels like acetylene, propane will take substantial proportions.

China end-use energy demand
　

The output value of industrial gas in 2005 was 36 billions, took 8% of the global market comparing to 2.7% in 2003. The annual growth rate of industry gas was 65% from 2003 to 2005 while global annual rate was 12%. Experts predicted on industrial fuel forum that by 2016 the output value will reach ￥100 billions.

The total demand of acetylene was over 0.1 billion bottles in 2008 and it is estimated that annual market value is ￥8 billions (￥80 per bottle); the matching oxygen consumption is about ￥4.2 billions; annual consumption of propane, natural gas and industrial gas are ￥40 billions. The demand for industrial gas will increase with rapid development of economy.

Distribution Map of Output Value of Industrial Gas
　

Supportive Policy
"Saving energy, reducing emission" is a vital national policy, which has already become working emphasis of governments and enterprises. A series of preferential policies is beneficial for developing and exploring market on environmentally friendly products.

　

The Diagram of Investment on Environmental Protection during the Period of "Eleventh Five-year" Plan.

•Energy-saving & Emission-reducing Working Plan
•Mid-and-long term Developing Plan on Regenerated Energy
•Mid-and long term Outline of the Program on National Scientific and Technological Development (2006-2020)
•Energy-saving Law of the People’s Republic of China
•Environmental Protection Law of the People’s Republic of China
•Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution
•Eleventh Five-year Project on National Emission Reduction
•Eleventh Five-year Project on National Environmental Protection
•Circular of State Council on Approval and Transmission of Implementation Scheme and Measures for Peer Inspection and Examination of Energy-saving
•Energy-saving Managing Methods of Energy Consumption in Major Units