China's plastics industry hopes that the expansion of the European exports and the continuous development of the domestic market can help to make up for its pillar market has been the loss of demand in North America.
On the current situation, it seems that is really the case. Although this aspect of the hard data is not yet clear, but according to the industry leader in the interview, with the needs of new markets, many of China's top composite profile extruder in the global economic crisis still maintain business stability.
"There are a lot of wood-plastic manufacturing plant export business is still strong, not affected by the financial crisis is too much impact, most of the factory orders too late to do, many of them are Expanded production capacity. "
Lin Dongliang where the United States and new plastic wood products Co., Ltd. this year's output continues to grow to 18,000 tons, five times as much as two years ago. He delivered a speech at the 3rd International Symposium on Plastic Wood held in Shenzhen from November 19 to 20.
He said the sale of the US and new plastic wood in North America suffered a blow, but the demand for Europe increased significantly, sales in China are also rising, now accounts for about 20% of its total sales.
Lin Dongliang, chairman of the United States and the new plastic wood, said the past in the wood-plastic composite products to accept the slower than the North American Europeans now began to increase demand, and the European wood-plastic compound plant capacity can not meet the local needs.
"Even in times of crisis, our orders are still too busy," Lin said. "He said that the situation of other large-scale wood-plastic complex is similar."
Headquartered in Shaanxi Baoji Qinchuan future plastics machinery limited liability company Song Weining said that the global wood-plastic composite market demand for Chinese enterprises growing, and there are still many untapped potential markets, especially in mainland China.
"I think this is the world's acceptance of WPC," said Song Weining, president of Futuresoft Technologies Inc (USA), based in Milburn, New Jersey. "In the past, only the United States and Canada recognized this material, and now Europe and the Middle East Also began to accept. "
Song Weining is also a member of the plastic plastic products special committee. He said that after the financial crisis, he felt that many companies - especially North American companies - began to stall, which created space for Chinese producers.
In addition, he said, China - made wood - plastic composite "is still relatively cheap. It is difficult to prove that these arguments are difficult to obtain, but according to a member of the committee, 60% of China's wood-plastic products are exported to Europe, which is a major year ago in North America as the main The situation of the exit is very different.
China's wood-plastic compound production in the past two years, about doubled to 330 million pounds, and very dependent on exports.
According to the Commission's statistics, at least 70% of China's wood-plastic composite products for export, but due to domestic demand growth, this figure than the previous year, about 80% of the export ratio declined.
Rapid expansion in recent years has also led to a serious excess capacity across the industry: the committee estimates that the total capacity is about 1.1 billion pounds, which means that capacity utilization is only at a very low level of 30%.
Song Weining said that this part of the enterprises in the production capacity to block the heavy, even if other peers are expanding production capacity to meet new needs, there are some companies expect the market will grow further in the future, ready to get involved. "In China, as long as the opportunity emerges, everyone will be eager."
Song Weining said that many Chinese enterprises profit margins are still small, he believes that if the RMB exchange rate against the dollar rose, will make his company like this with the United States a lot of business business losses.
Lin Dongliang and other industry insiders have said that the investment in the wood-plastic composite industry also follows the most common industrial model in China, that is, large-scale growth brings a lot of excess capacity - the same as the current production of solar energy equipment - then the demand will eventually catch up The
"This is a temporary overcapacity," said Ji Jianren, secretary general of the Committee of Plastic Products, Plastic Industry Committee of China Plastics Industry Committee. "The demand for wood and plastic in China is increasing rapidly.
Although the continuous development, but the size of China's wood-plastic composite industry is still far less than the US market, the annual output of only about 1/5 of the United States.
Song Weining said at the meeting, said that China's domestic market has a huge potential.He said that his company and many other companies have developed for the Chinese users of wood-plastic composite / aluminum frame window, and aimed at indoor applications.He said that China's various doors and windows market growth rate of 11% per year, China's doors and windows and wallboard market size in the world's first, about four times that of Europe.