PAC Faces New Development Opportunities
By Liu Yongming

Polyaluminum chloride (PAC) is a high-effect water purifying
agent. It has the functions of removing fungi, odor, color, iron,
cadmium, radioactive pollutants and floating oil. Its water
purifying effect is outstanding and the consumption is 30% lower
than that of traditional water purifying agents. It is one of
the water purifying agents with the most extensive applications
and the greatest sales amount and will gradually replace
traditional water purifying agents in future.
    The output of PAC in the world is 600 thousand tons (based
on 30% aluminum oxide) a year. The output is 150 thousand tons
in China and 200 thousand tons in Japan. The consumption of PAC
in Europe accounts for 70% of its total urban water treatment
market and the consumption in Japan accounts for 90%.

Dispersed production

The PAC sector in China has developed rapidly in recent years.
The capacity of PAC (based on 30% aluminum oxide) reached 170
thousand t/a in 2005. Major producers include Liaoyang Water
Purification Agent Plant, Nanning Chemical Group Co., Ltd.,
Guizhou Guixin Water Purification Agent Co., Ltd., Zibo Jingjie
Water Purification Agent Co., Ltd., Gongyi Zhitian Purification
Agent Plant, Gongyi Huayuan Water Purification Material Co.,
Ltd., Gongyi Songshan Filtrate Material Co., Ltd., Jiaozuo Aefk
Chemical Co., Ltd. and Gongyi Zhitian Xianke Water Purification
Material Plant. Producers usually have a capacity of 2
thousand-5 thousand t/a. They are mainly distributed in Henan,
Shandong, Jiangsu and Zhejiang provinces. Gongyi of Henan
province is the largest PAC production base in China. The output
of PAC in Gongyi accounted for 30% of the national total in 2005.

Concentrated consumption distribution

PAC in China is mainly used in the purification of industrial
sewage and the purification of tap water supply. The consumption
in these two sectors accounted for 70% of the total in 2005.

Bright market prospect

    (1) Bright potential market in sewage treatment
According to statistics, the total discharge of sewage in China
reached 52.45 billion tons in 2005. Of the total, the amount of
industrial wastewater was 24.31 billion tons and the amount of
urban domestic sewage was 28.14 billion tons. The treatment rate
of wastewater in China is on the low side. The treatment rate
of urban sewage is less than 20% and the up-to-standard treatment
rate of industrial wastewater is less than 70%. China will make
more efforts in wastewater treatment during the Eleventh
Five-year Program period (2006-2010). (i) Strictly control the
total discharge of pollutants: In the next 5 years, over 3 200
major companies that cause more than 65% of the total industrial
water pollution should conduct treatment to industrial
wastewater they discharge. Companies that fail to meet the
discharge limits fixed by the state or local governments will
be forced to make rectification within a prescribed time limit.
For companies that still fail to meet the discharge limits after
the rectification within a prescribed time limit, their business
licenses will be revoked. The construction of projects that
violate the provisions of environmental impact evaluation
should stop. In areas with pollutants higher than the total
control amount, national bond projects and other construction
projects will not be arranged. (ii) Accelerate the construction
of urban sewage treatment facilities: The treatment rate of
urban domestic sewage will not be less than 70% in 2010. The
control on water pollution exercised by the state will therefore
bring a huge potential market to water purifying agents.

    (2) Well-developed technology and raw material advantage
As China owns rich raw material resources and the production cost
of PAC is relatively low, the PAC production in China has
developed rapidly. Production processes for PAC include the acid
process, the alkali process, the neutralization process, the
thermal decomposition process, the pressurized reaction process,
the mixed gel process, the electrodialysis process and the
electrolysis process. Domestic technologies have approached or
reached the world advanced level.
   PAC produced in China has strong competitive advantages in
the international market. The export amount has increased
constantly. With the environmental protection enforced in local
areas and the unfolding of activities for improving urban
domestic water quality, the demand of various water purifying
agents including PAC will grow rapidly. Water purifying agent
producers in China should seize the opportunity, improve product
quality and expand production scale to meet the market demand.