China's plastics market attracts a large number of international giants

In recent years, with the increase in demand for downstream plastic products, the overall demand for plastic machinery in China's domestic market has steadily increased. According to the 12th five-year development plan for the press industry, in the next five years, the average annual growth rate of the presses industry will be over 12%, and the total industrial output value and total sales volume of the industry will reach more than 50 billion yuan. As the current domestic market activity is lower than the international market, the domestic situation will prompt more companies to go international. It can be expected that in the coming period, the press industry will have an export fever, and this fierce domestic competition will be transmitted to the international market. At that time, the international market will usher in a fierce and rapid growth trend.

The machinery industry occupies an important position in the modern society and economy, and it is an important support for the industrial economy. In the 14th year, the difficulty in the growth of China's machinery product exports has gradually increased. It is expected that the annual growth rate of China's machinery industry will be about 8%. This year, the tight external environment of China's machinery industry development is unlikely to improve significantly, but overall it is still expected to remain basically stable and continue to be mainly flat.

According to the latest research, a better marketing atmosphere is coming, from the perspective of fixed investment spending and the acceleration of plastics production. Packaging will be the largest market for plastic processing machinery and it is expected that by 2017 it will exceed one-third of total sales. The next largest end market will be consumer products and construction.

Due to the wide range of applications for the functional diversity of injection molding equipment, it will continue to hold the most important position in processing machinery and will account for two-fifths of the mechanical sales market by 2017. The Engel Group, the manufacturer of injection molding machines and robots in Austria, will complete the second production base in China to produce injection molding machines, auxiliary equipment and drive systems. According to the Changzhou government, the plant will have an annual output of 300 injection molding machines and annual sales will exceed 500 million yuan.

Engel will also share more information at the Shanghai Press Conference before the Chinaplas from April 23 to 26. Engel officials declined to give more details, but said that the plant will produce injection molding machines and other products. According to the local government’s website in Wujin District, Changzhou City, Engel has started construction of a first-phase project last fall, covering an area of ​​60 acres and a building area of ​​about 20,000 square meters. The investment amount is 270 million yuan. The project occupies a total area of ​​120 acres. Last year, Engel announced that its Asian sales surpassed that of the Americas for the first time, indicating that the potential of the Chinese market is gradually emerging.

The China Petrochemical Federation released an early warning report on the overcapacity in the petrochemical industry at the 2014 petrochemical industry development conference last week, saying that overcapacity in some industries will further increase in the next two years. However, taking polyvinyl chloride as an example, despite a serious overcapacity, the domestic production capacity is mainly based on the production of general-purpose grades. There are only a few special resins for downstream processing companies, and the special resin still needs to import nearly one million tons each year. Huge demand is also rushing to international chemical raw material companies.

On April 17, Ogilvy & Mather, a global supplier of customized color and additive solutions for polymer products, announced that it will expand production at the original Suzhou plant in order to better serve customers in the Asia Pacific region. The second phase of the plant is expected to be completed in October 2014, when the capacity will be doubled. On the same day, British masterbatch producer Colloids Ltd. plans to invest US$6 million in establishing the company’s first factory outside of the United Kingdom in Suzhou, China. The company, headquartered in Knowsley, said that the Suzhou plant will have an area of ​​3,700 square meters and will be opened in the third quarter of this year, with an initial production capacity of 3,500 tons. It will also target European and American customers and local markets, especially automobiles, appliances, white electricity and consumption. Products.

The enormous potential of China’s market is being recognized by international companies. This benefits from the accelerating process of urbanization and the great opportunities brought about by the new plans for infrastructure construction in Chinese cities. The continuous entry of international companies has also led to increased market competition. For domestic domestic companies, this may be a Damocles sword. How to make a decision is very important.