On March 16th, the Secretary of the Provincial Party Committee, Lou Yangsheng, conducted a research on the development of the superhard materials industry by visiting universities, laboratories, and enterprises in Zhengzhou. Superhard materials are known as the "king of materials" and the "ultimate semiconductor", and our province's superhard material production ranks first in the country.
When it comes to superhard materials, the world looks to China, and when it comes to superhard materials in China, Henan is the place to be. Superhard materials, represented by diamond, are known as the "hardest and sharpest industrial teeth" and are also recognized as the "ultimate semiconductor".
In the cultivation of the diamond industry, China's production capacity accounts for about 50% of the world's total, and 80% of it belongs to "Henan-made". The scale of Henan's superhard materials industry is about 40 billion yuan, with approximately 300 companies with scale above a certain level, including 30 companies with sales revenue of more than 100 million yuan. They are mainly distributed in four cities: Zhengzhou, Xuchang, Nanyang, and Shangqiu.
In the A-share superhard materials army, there are many shining names of Henan enterprises, such as Guojian Precision Machinery, Huanghe Whirlwind, Liangjing Diamond, Sifangda, Huifeng Diamond, and other listed companies, as well as Funac Precision and other companies that are in the process of IPO. Henan's superhard materials industry, standing at the forefront of the industry, has already made its mark in the capital market.
The world looks to China for superhard materials, and within China, Henan is the place to be for superhard materials.
Superhard materials are known as the "teeth of industry" and are an important cornerstone for supporting national economic construction and development. Henan is the birthplace of China's superhard materials and products industry. In 1963, the Zhengzhou Three Grinding Institute successfully developed the first artificial diamond in Chinese history. Subsequently, the superhard materials industry in Henan took off and embarked on a path of continuous progress.
Public data shows that China's production of diamond single crystals accounts for about 95% of the world's total production, ranking first in the world, and Henan's production of artificial diamonds accounts for 80% of the national total. In the field of diamond cultivation, China's production capacity accounts for about 50% of the world's total, of which 80% are "made in Henan."
As of the end of 2021, there are more than 300 large-scale superhard materials enterprises in Henan, with an industry scale of about 40 billion yuan, and about 30 enterprises with sales exceeding 100 million yuan. Zhengzhou, Changge and Xuchang, Zhecheng in Shangqiu, Jiaozuo, and Fangcheng in Nanyang have formed superhard materials industry clusters, and a group of leading enterprises such as Zhengzhou Three Grinding Institute (National Machinery Precision), Zhongnan Diamond (China South Industries Red Arrow) have emerged.
According to Sun Zhaoda, Secretary General of the Superhard Materials Branch of the China Machine Tool Industry Association, the entire domestic superhard materials map is centered on Henan and radiates to the coastal areas and other regions, serving the domestic market and moving towards the international market. From upstream raw materials, special equipment, to midstream diamond, cubic boron nitride, composite materials, and downstream applications in various fields, Henan has established a relatively concentrated and relatively complete industrial chain.
Behind the scale advantage is strong technical support. It is understood that Henan has the only national-level superhard materials industry base in China, the "National Torch Program Henan Superhard Materials Industry Base", as well as national-level key laboratories, enterprise technology centers, engineering technology centers, quality inspection centers, productivity promotion centers, and national standardization technical committees in the superhard materials industry. There are also a number of national-level research institutes engaged in related research, such as Zhengzhou Three Grinding Institute, Mechanical Research Institute, and Metal Products Research Institute. Universities such as Zhengzhou University, Henan University of Technology, Henan Polytechnic University, Zhongyuan University of Technology, and Zhengzhou Vocational and Technical College have also provided a solid foundation for the development of the superhard materials industry and trained a large number of professional and technical personnel.
Birth of multiple listed companies, holding half of the market share of listed companies in the superhard materials industry
More than 20 listed companies are related to superhard materials, and companies from Henan Province basically occupy half of them," said Sun Zhaoda. In 2021, Henan produced over 16 billion carats of single crystal, accounting for roughly 80% of the global total; 3 billion carats of diamond micro-powder, 600 million carats of cubic boron nitride, and 3 million carats of cultivated diamonds. Currently, Henan Province has a number of listed companies and New Third Board enterprises in the industry, including Sanmu, Huanghe Whirlwind, Sifangda, Power Diamond, Huifeng Diamond, and Funik. They are driving innovation in the industry and leading high-quality development. Huanghe Whirlwind, which was listed on the Shanghai Stock Exchange in 1998, was the first listed company in the superhard materials industry. Currently, the leading products of Huanghe Whirlwind include industrial diamonds, cultivated diamonds, superhard composite materials and products, diamond wire saws, diamond micro-powder, diamond saw blades, diamond cutting tools, pre-alloyed powders, high-temperature and high-pressure equipment, and more than 1,000 varieties and specifications in ten major categories. The "cyclone" brand superhard materials and products produced by Huanghe Whirlwind are widely used in various fields related to national economy and people's livelihoods, such as aviation and aerospace, petroleum drilling, military equipment, instrumentation, machinery processing, precision manufacturing, clean energy, geological exploration, high-speed railways, and construction materials. The products are supplied domestically and exported to Europe, America, Northeast Asia, Southeast Asia, and other regions. Currently, Huanghe Whirlwind has 341 core patented technologies, including 21 invention patents. Nine technologies, such as the "1-5mm gem-grade colorless diamond synthesis key technology," independently developed by Huanghe Whirlwind, have reached the international advanced level; and 15 technologies, such as the "diamond ion plating titanium key technology research and development and industrialization," have reached the domestic leading level. Through continuous innovation, Huanghe Whirlwind has filled many gaps in the domestic diamond equipment, products, and applications, and solved the technical problems that have held back the diamond industry and the military industry.
In Zhengzhou, represented by companies such as Sanmiao and Sifangda, the superhard materials industry has been developed in sync with other regions such as Xuchang and Shangqiu, relying on the only national-level superhard materials industrial base in China, as well as national key laboratories and technology centers, "grasping" the market lifeline of the global superhard materials industry.
September 24, 2021 and July 18, 2022 are both "shining" days for Zhecheng, as Power Diamond and Huifeng Diamond respectively went public, becoming a pair of eye-catching "twin stars" in the capital market of Zhecheng.
As the "first listed company of diamond micro-powder in the Northern Exchange", Huifeng Diamond has industry-leading advantages in the research and production of diamond micro-powder.
Since its establishment, the company has focused on the application of diamond micro-powder in "cutting, grinding, and polishing" as well as "new functional materials", continuously improving its production process, and forming core technologies such as diamond crushing and shaping, automatic particle size sorting, purification, foamed diamond micro-powder, and nano-diamond preparation. It has developed into a leading supplier of diamond micro-powder products in China, and participated in the drafting of the national standard for "superhard abrasive synthetic diamond micro-powder"
Big but not refined.
There is still a gap for Henan's superhard material products in the mid-to-high-end market.
Despite outstanding production capacity, the output value of Henan's synthetic diamond industry does not match it, leaving a large gap from the goal of high-quality development.
"In recent years, the matching degree between industry research and development and production has continuously improved, and the speed of achievement and technology transformation has accelerated. But we should also see that in some high-end fields of superhard material products, such as ultra-precision and high-precision processing, we still have certain gaps with foreign countries, and we need to continue to research and explore in the functional application of superhard materials," said Zhang Cunsheng, Chief Engineer of Power Diamond.
Sun Zhaoda once said in an interview with Dahe Caifang reporters that currently, most of Henan's superhard material companies are upstream raw material products, with few high-end superhard material products and functional application products. The competitiveness of mid-to-high-end products is weak, the degree of product specialization and refinement is insufficient, and some mid-to-low-end products have excess production capacity. At the same time, there are also problems such as the lack of or insufficient application laboratories for product research and development, weak research on cutting-edge technology, and insufficient support for future sustainable development of high-end talents, and the concentration of the industry needs to be further improved.
Henan's emerging materials also lack application soil and sales channels. As a new force in the industry, functional diamond materials and cultivated diamonds have received attention from all aspects, but currently rely on traditional fields in terms of application and sales, and have not established an industrial chain centered on Henan Province for manufacturing, processing, sales, and application, and are in a high-risk, low-value-added stage of the industry chain.
In response to this, Zhang Cunsheng once suggested that the government provide support in policies and funding, guiding leading superhard material companies in the province to increase research and development investment in diamond applications; proposing the establishment of innovation alliances between enterprises and schools to orderly connect technology research and development, talent cultivation, and market applications, forming a rapid and efficient transformation mechanism to jointly build Henan into a research and manufacturing center for superhard materials; meanwhile, further increasing support for functional application research and development of superhard materials, leveraging the unique advantages of superhard materials in the fields of sound, light, electricity, heat, etc., expanding the industry, extending the industrial chain, and building a superior brand, providing strong support for the future advanced manufacturing, intelligent manufacturing, and high-quality development of Henan.
Li Zhengxin, deputy dean of the College of Materials Science and Engineering at Henan University of Technology, also stated that effective cooperation is needed between industry, academia, research, and application, with a market-oriented approach, technology-driven, and capital as a link, using new mechanisms and methods to carry out major project research and development of high-precision diamond products, functional diamond, and other areas. He also suggested vigorously promoting the "specialization, refinement, and novelty" construction of the superhard material industry, establishing an artificial diamond futures market, regulating the market, encouraging innovation, gradually eliminating the stubborn problem of homogeneity and low prices, and achieving high-quality development of the industry.
At the just-concluded National People's Congress, Hu Laiyun, head of the innovation workshop of Zhongnan Diamond Co., Ltd., a subsidiary of Yuxi Industrial Group in Henan Province, also proposed that the state introduce more preferential policies to encourage and support the development of the cultivated diamond industry, better guide China to participate in international competition in cultivating diamonds; guide related companies to strengthen high-level construction projects and technology research and development, provide high-quality products, and continuously enhance the competitiveness and discourse power of cultivated diamonds in the international market.
At the Henan Provincial People's Congress held in January, Yu Huamin, a deputy to the Provincial People's Congress and the county head of Zhecheng County, also suggested that the provincial government continue to include the superhard material industry in the industrial planning for the next five years and focus on cultivation.
By 2025, build a trillion-level new material industry cluster with world influence.
The Dahe Caifang reporter has learned that in order to promote the development of the superhard material industry, the Henan Provincial Party Committee and Provincial Government have successively introduced multiple policies.
The "14th Five-Year Plan" for the development of Henan Province proposes to consolidate the advantages of artificial diamonds, vigorously develop gem-grade diamonds, high thermal conductivity and high transmittance polycrystalline diamonds, and accelerate the research and development and manufacturing of high-end products such as diamond polycrystals and high-end cutting tools. Accelerate the coordinated development of raw and auxiliary materials, superhard materials, and products, and build a global superhard material industrial base.
In October 2021, the Henan Provincial People's Government issued the "Action Plan for Cultivating the Advanced Manufacturing Industry Cluster in Henan Province", which proposed the grand goal of "building a trillion-level new material industry cluster with world influence and creating a billion-level industrial chain of superhard materials."
In March 2022, with the approval of the Henan Provincial Department of Industry and Information Technology, the Henan Diamond Materials Industry Research Institute was jointly established by Huanghe Whirlwind and key universities, research institutes, and upstream and downstream enterprises inside and outside the province.
It is understood that the research institute will focus on attracting, introducing, and cultivating high-end talents, increasing research and development investment, and strengthening the talent team of research and development, capital and finance, entrepreneurship and industry, and management and service. Through cooperation with research institutions and universities, the optimization and upgrading of the research and development platform of the institute will be realized, and the incubation of the industrial chain, the aggregation of high-end technologies, and enterprises will be strengthened.
The "Action Plan for Accelerating the Remanufacturing of Material Industry Advantages and Leading the Way in 2022-2025" in Henan Province also proposes that Henan Province will focus on the development of composite superhard materials and products and key equipment in areas such as 5G, chip manufacturing, and oil and gas drilling. It will accelerate the research and development of preparation technologies for nanocrystalline diamonds, functional diamonds, and other materials, and expand their applications in fields such as jewelry, electronic information, sewage treatment, biomedicine, and equipment. Zhengzhou, Xuchang, Shangqiu, Luohe, Nanyang, and Xinyang will be used as the fulcrum to create the world's largest superhard material research and development and production base.
By 2025, more than 10 new national key innovation platforms will be added, 40 advanced material key industrial chains will achieve full coverage of provincial key innovation platforms, and material enterprises above a certain scale will achieve full coverage of research and development activities. They will break through about 30 key core technologies and advanced processes each year, and achieve more than 100 key core innovation achievements in four years.
Li Xiang, Deputy Director of the Henan Provincial Department of Industry and Information Technology, stated that as the national superhard material industry research and development center, industrial base, and radiation source of technology and talents, Henan Province will strengthen top-level design, increase policy support, and promote the industry's transition from large to strong and towards high-precision development.
"According to the requirements of consolidating the leading position of advantageous industries proposed at the 20th National Congress of the Communist Party of China and the idea of 'strengthening strengths and making up for weaknesses,' Henan Province will strengthen support and guidance, optimize the industrial system, promote the transition of the superhard material industry from large to strong and towards high-precision development," said Li Xiang.
Science Popularization: What is the Difference Between Synthetic Diamonds and Natural Diamonds?
Science Popularization: What is the Difference Between Synthetic Diamonds and Natural Diamonds?"
"The famous diamond brand, De Beers, once defined natural diamonds as a symbol of love with the advertising slogan "A diamond is forever," which led to a surge in prices. However, the reserves of natural diamond deposits are not high and the mining difficulty is significant. The primary native mines are mainly distributed in countries such as South Africa, Zaire, Botswana, Russia, and Australia, and diamond mines in China are extremely scarce.
As the market continues to expand, synthetic diamonds have entered people's vision. Of course, questions also arise: what is the difference between synthetic diamonds and natural diamonds? Can synthetic diamonds replace natural diamonds?
It is understood that synthetic diamonds are diamonds generated and manufactured by simulating the crystallization characteristics of natural diamonds using artificial methods. Synthetic diamonds and natural diamonds are both crystals formed by carbon elements, with the same chemical and physical characteristics. Cultivated diamonds can compete with natural diamonds in terms of the integrity of crystal structure, transparency, refraction, dispersion, and other aspects.
In terms of parameters, synthetic diamonds and natural diamonds have exactly the same physical, chemical, and optical properties. The only difference is that natural diamonds take billions of years to form under natural conditions, while synthetic diamonds only take a few weeks. Therefore, some experts describe the difference between synthetic diamonds and natural diamonds as being like the difference between "river ice" and "refrigerator ice."
A Pacific Securities analyst who has long been focused on the diamond industry told reporters, "Currently, the price of synthetic diamonds produced domestically has already reached the level of natural diamonds in terms of carat weight, color, clarity, and cut, and even surpasses natural diamonds in terms of clarity. However, in terms of price, synthetic diamonds are only equivalent to one-third of the price of natural diamonds."
Forever lasting, a diamond is forever." This was a well-known advertising slogan by the diamond brand De Beers, which defined natural diamonds as a symbol of love, leading to a surge in prices. However, the reserves of natural diamond deposits are not high, and mining difficulties are significant. The primary native mines are mainly distributed in countries such as South Africa, Zaire, Botswana, Russia, and Australia, with diamond mines in China being extremely scarce.
As the market continues to expand, synthetic diamonds have entered people's vision. Naturally, questions arise: what is the difference between synthetic diamonds and natural diamonds? Can synthetic diamonds replace natural diamonds?
It is understood that synthetic diamonds are diamonds generated and manufactured by simulating the crystallization characteristics of natural diamonds using artificial methods. Synthetic diamonds and natural diamonds are both crystals formed by carbon elements, with the same chemical and physical characteristics. Cultivated diamonds can compete with natural diamonds in terms of the integrity of the crystal structure, transparency, refraction, dispersion, and other aspects.
In terms of parameters, synthetic diamonds and natural diamonds have exactly the same physical, chemical, and optical properties. The only difference is that natural diamonds take billions of years to form under natural conditions, while synthetic diamonds only take a few weeks. Therefore, some experts describe the difference between synthetic diamonds and natural diamonds as being like the difference between "river ice" and "refrigerator ice."
A Pacific Securities analyst who has long been focused on the diamond industry told reporters, "Currently, the price of synthetic diamonds produced domestically has already reached the level of natural diamonds in terms of carat weight, color, clarity, and cut, and even surpasses natural diamonds in terms of clarity. However, in terms of price, synthetic diamonds are only equivalent to one-third of the price of natural diamonds.