HZ Info, As a leading research institute transformed enterprise in the industry, CNOOC Changzhou Paint & Coatings Industry Research Institute Co., Ltd.(Changzhou Institute) focuses on the key technical requirements of high-performance coatings manufacturing, adheres to integrity and innovation, builds a modern industrial technology system with reasonable structure, openness and compatibility, independent controllability, and competitiveness, and develops into an innovative technology enterprise with international competitiveness in the field of coatings new materials and industrial protection.

Recently, HZ Info had the opportunity to interview Mr. Gao Yang, the Secretary of Party Committee and Chairman of Changzhou Institute. In this interview, Mr. Gao Yang shared with us the latest developments of the research institute, trends in the coatings industry, and his unique insights and prospects for the coatings chemical industry.

Mr. Gao Yang, the Secretary of Party Committee and Chairman of Changzhou Institute

Technology Driven

The development history of Changzhou Institute, founded in 1969, can be said to be a history of continuously solving the "bottleneck" technology in the national coatings industry, and is transforming from a traditional old research institute into a truly technology-based enterprise. The enterprise has achieved more than 600 technological achievements, including 8 national science and technology invention and progress awards, and more than 50 provincial and ministerial level science and technology invention and progress awards. In 2023, it was selected as a national level specialized, refined, special and new "little giant" enterprise.

‘I took up my new position at Changzhou Institute in 2019, transitioning from the IT industry to the paint manufacturing industry. I experienced the increasingly severe safety and environmental protection situation in the paint industry, as well as the fluctuating raw material prices. At the same time, I also saw the opportunities brought by the development of environmentally friendly coatings. We not only need to properly respond to the risks brought by these changes, but also seize the opportunities nurtured by these changes.’said Gao Yang.

In 2020, the State owned Assets Supervision and Administration Commission released the first batch of 204 selected "demonstration enterprises for scientific and technological reform", and Changzhou Institute was listed. Taking this as an opportunity, the trend of reform has once again pushed Changzhou Institute to the forefront. The needs of the country, the call of the times, the demands of society, and the sustainable growth of enterprises have always been the coordinate guidelines for Changzhou Institute to lock in the direction, formulate the battle path, and take action. Based on reality, we will fight on the table, construct according to the map, and Changzhou Institute's reform and innovation will officially set sail······

Changzhou Institute has always adhered to technology empowerment, stimulating the innovation vitality and momentum of enterprises. Focus on high-end product strategy, implement core technology research and layout, and establish a technology management system driven by both core technology and market demand. Adhere to strategic guidance and optimize organizational platform construction. Focus on the main responsibility and business, and transform the target results into high value-added innovation. Improve the technical system in polymer synthesis, functional coatings materials, and marine equipment protection related to three areas: ocean strategy, national "new infrastructure" strategy, and sustainable development strategy. Deploying innovation chains around the industrial chain, relying on innovation chains to enhance the value chain, using projects as carriers, promoting collaborative cooperation between industry, academia, research, and application, effectively solving the deep integration of scientific research and production, and becoming the backbone of ensuring the security of the supply chain of coatings and new materials in the new era.

As a technology-based enterprise in the field of coatings new materials, Changzhou Institute attaches great importance to the development and application of new materials. In order to break through the technological bottleneck, we have established a technical team of nearly 100 people based on research platforms such as the National Coatings Engineering Technology Research Center and the National Postdoctoral Research Workstation recognized by the Ministry of Science and Technology.

Grab Growth Points

2023 is a challenging year for the coatings industry, as the overall market growth rate slows down and the market increment decreases, putting enormous pressure on the industry. However, it is in this context that Changzhou Institute has demonstrated its strong operational strength and keen market insight, achieving sustained and rapid growth in business scale.

‘2023 is a year for Changzhou Institute to make comprehensive efforts and breakthroughs in multiple areas of operation, achieving sustained and rapid growth in business scale. The revenue in 2023 increased by 14% year-on-year, with a compound annual growth rate of 14% in the past three years; the profit in 2023 increased by 55% year-on-year, with a compound annual growth rate of 23% in the past three years. In the context of slowing economic growth and reduced market growth, Changzhou Institute's anti-corrosion coatings and coil coatings broke through against the trend, with outstanding sales performance.’ said Gao Yang.

In the face of challenges and opportunities coexisting in 2024, Gao Yang stated that Changzhou Institute will continue to focus on the main line of "Party building+starting again" work, comprehensively strengthen Party building, highlight core capacity building, continue to deepen reform and innovation, strive to achieve breakthroughs in key issues, and embark on a new journey of high-quality development for technology-based enterprises. Comprehensively enhance the integrated service capability of industrial protection business and achieve effective improvement in quality. The green coatings business is deeply implementing its product strategy, achieving significant and reasonable growth, and striving towards large-scale and value products. Industry services lead the development of the industry through standardization while also considering their own high-quality development.

In the face of the complex situation of transformation in development mode, high cost enterprises, and intensified competition, Gao Yang said, "We deeply recognize that promoting the company to achieve high-quality development is a concrete manifestation of fully implementing Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era. We not only need to plan according to the situation, grasp the development trend, but also take the lead and seize the development growth points. Changzhou Institute has always focused on core business, formed an integrated competitive advantage of 'research and development+products+services', and has done a lot of work in scientific and technological innovation, standardization, and other aspects. Changzhou Institute has taken platform, research and development, and talent as horizontal aspects, and internal paths of CNOOC, local areas in the province, and national ministries as vertical paths, to build a' three horizontal and three vertical 'scientific and information core capability system. Changzhou Institute led the drafting of Part XX of the National Standard for Carbon Emission Accounting and Reporting Requirements; The "Coatings Production Enterprises" and "Carbon Emission Accounting and Reporting Requirements Part XX: Pigment Production Enterprises" have been officially approved, taking the initiative to carry out carbon reduction and emission reduction actions such as carbon quotas and carbon footprints in the future.

New Opportunities

Under the guidance of safety and environmental protection policies, insufficient recovery of the supply chain after the epidemic, slowing economic growth in a complex international environment, and rising raw material costs driven by high crude oil prices, the coatings industry has entered a critical stage of transformation and development. A new pattern of industry development where the strong remain strong is taking shape.

Gao Yang believes that the "dual carbon" policy has brought new opportunities for the development of the coatings industry. The country promotes the transformation of low VOC products in the paint industry through multiple policies; The EU's launch of the "Carbon Tariffs" policy (CBAM) is expected to have a profound impact on global trade, and the demand for reducing the overall "carbon footprint" of Chinese manufacturing products in the supply chain is expected to experience explosive growth. Currently, the 'carbon tax' policy is accelerating its implementation, and I believe that new materials for coatings that significantly reduce their 'carbon footprint' will be a hot topic in market development.

It is reported that Changzhou Institute is also steadfastly promoting green and low-carbon transformation. In 2023, the enterprise will complete key projects such as provincial "green factory" construction, city key monitoring point application, zero industrial wastewater discharge, and distributed rooftop photovoltaics. This year, Changzhou Institute has put forward the slogan of stepping towards a "zero carbon factory" and will strive to create the industry's first "zero carbon factory" on the basis of a green factory.

In addition, Gao Yang also mentioned the new development models that digital transformation brings to enterprises. Digital transformation is driving Chinese manufacturing enterprises to reconstruct their business models and processes with digital thinking. By improving the digitalization, networking, and intelligence levels of research and development, production, operation, and service, it can optimize customer service experience and enhance customer stickiness. ‘Therefore, I believe that digital transformation is an important measure to cultivate new quality productivity and is also one of the inevitable trends in the development of the coatings industry. "Gao Yang revealed that Changzhou Institute has built the only" three line integrated anti-corrosion coatings intelligent factory in China, creating a new model of coatings production that combines data+platform+application.’

‘As an old research institute, Changzhou Institute always takes on heavy responsibilities and challenges when the country needs it, demonstrating a sense of mission as a red state-owned enterprise. In the report of the 20th National Congress, it was repeatedly mentioned that we must adhere to the spirit of "upholding integrity and innovation". Standing at a new historical starting point, Changzhou Institute "upholds" the spirit of the old research institute that dares to innovate, is not afraid of breakthroughs, and has a tenacious work style; The innovation is the new system of modern enterprises with scientific management, effective organization, and high-quality growth. Standing at a new starting point and facing new goals, we aspire to become the bearers of national strategy, practitioners of reform and development, leaders of innovation and upgrading, and creators of customer value. ‘said Gao Yang.