Mei Fengjia Lan Wu Jiang Tao: Optimistic Face the Fourth National Market

On July 1, 2013, the State IV emission standards for heavy-duty diesel engines entered the formal implementation stage, and cities including Nanjing, Qingdao, and Chengdu announced their implementation as scheduled. As we all know, in the field of heavy commercial vehicles in China, SCR is considered as the mainstream route. In order to ensure smooth discharge requirements, vehicles must be equipped with post-treatment devices and urea solutions for vehicles. As the market has just started, supporting facilities such as filling stations and weak channels, many automotive urea solution manufacturers are facing tremendous pressure for development.

AdBlue solution supplier - Sichuan Meifeng plus Blue Environmental Technology Co., Ltd. (hereinafter referred to as "Beautiful plus Blue") Wujiang Tao, general manager, he said in an interview with reporters: "After professional market research, Mei Fung plus blue It is expected that the urea solution market for heavy-duty diesel engines will eventually form a market scale of 10 billion. We are very optimistic about this market and are fully prepared."

Strict production process, outstanding product cost performance

Wu Jiangtao explained to reporters, “Meifengjialan is a wholly-owned subsidiary of Sichuan Meifeng Chemical Co., Ltd. (hereinafter referred to as Sichuan Meifeng), while Sichuan Meifeng is a holding company controlled by Sinopec and is currently the top ten in the country. One of the fertilizer production and distribution enterprises, the agricultural urea production capacity reached 1.95 million tons, and the vehicle urea solution was researched and developed since 2008, and Meifeng Jialan was finally established, so the company supplies raw materials for urea solution products for vehicles and The cost has a natural advantage, and the cost of finished products can be achieved at the lowest domestic level."

In Wu Jiangtao's view, the advantage of Ume Plus Blue's car urea solution lies in the implementation of excellent standards, and the production process and quality inspection standards are very strict. According to the report, “The urea solution of Meifeng Jialan’s vehicles directly uses liquid urea as raw material, and adopts a totally enclosed production system to ensure that the entire production cycle of the product is not contaminated. It also purchases the world's leading quality inspection equipment and uses the most. Strict standards to test the finished product."

Test water export market is very popular with users

The rigorous production process of Meifeng Jialan has also received results. Its urea solution for vehicles passed the AdBlue certification of the most authoritative German Automobile Industry Association in Europe and is the first Chinese company to pass this certification. At the same time, the DEF certification of the American Petroleum Institute API is also in progress, which adds to the confidence of Wu Jiangtao and his team to open overseas markets.

From scratch, there is more savings. Mentioned today's performance of Mei Feng Jia blue in the export market, Wu Jiangtao is quite proud. He told reporters: “The company has become an important supplier of urea for automobiles worldwide. Its products have been exported to more than 10 countries including the United States, Australia, Japan, Turkey, Malta, Brazil, Israel, Chile and Hong Kong, and Taiwan. And in the region, there are few domestic vehicle urea companies that currently export their products.”

Given the high degree of acceptance by users of Meifengjialan in overseas markets, Wu Jiangtao expects that the share of the export market will further increase and will also provide strong support for the current development of the domestic market.

Relying on Sinopec channel distribution domestic market

Opening up the situation with exports is not Wu Jiangtao’s original intention. The broad domestic market is his ultimate goal. As the national three cars are a natural elimination process, the final formation of the Fourth National Market will take 3-5 years. Wu Jiangtao predicts that about 2 million heavy-duty diesel vehicles in the final market will need to be filled with vehicle urea solutions to meet the National IV emission standards, which will be calculated based on the consumption of 1.5-2 tons of urea solution per vehicle per year. At 3.5 million tons, the industry may eventually form an industry scale of 10 billion yuan, including supporting refueling stations and other investments, and the market size will be even greater. At present, Meifengjialan has 600,000 tons of production capacity, and can continue to increase according to market conditions.

In the domestic market where the channel is king, if Meifengjia Blue wants to achieve good results, the distribution network must follow the market trend. Wu Jiangtao divided the goals into short-term and long-term goals.

He said: "In the short term, the use of order shipments, and can provide 10 liters of plastic drums, 20 liters of plastic drums and 1 TIBC filling equipment products to meet the needs of different users of the filling. Active and vehicle manufacturing Enterprises and engine companies are in touch with each other and strive to provide products and services for them.At present, the cities that implement the fourth national emission are highly demanding of environmental protection, so Meifengjia Blue also has a lot of trouble in product packaging. In the sealed package, its retail plastic barrel packaging material also meets the national standard GB29518-2013 packaging material requirements to ensure the quality and safety of the product, while the plus blue filling equipment can use the power supply to automatically fill, can record a single filling The quantity and total number of refills will be automatically stopped when they are full, which is beneficial to the management of enterprise users."

"From the perspective of long-term development, Meifengjia Blue will rely on Sinopec's channels to cooperate with it and set up a urea solution filling station at the gas station so that users can add urea solution at any time while refueling. Of course, this requires a long period of time. The process," Wu Jiangtao continued.

Although the National 4 emission standards have not been fully implemented nationwide, it cannot be denied that the major trend of China's commercial vehicle emission upgrades is irreversible. With the increasing number of cities implementing the four national emission standards, the prospects for the automotive urea solution market will gradually become clearer. We also expect more and more high-quality, market-tested products such as Meifengjialan to emerge.

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