Speakers: China's plastics industry must change now

Isaac Li
PLASTICS NEWS CHINA

Published: June 11, 2014 11:31 am ET
Updated: June 11, 2014 11:35 am ET

Image By: Isaac Li, Plastics News Ma Zhanfeng, general secretary of the China Plastics Processing Industry Association

Related to this story

Topics China

HANGZHOU, CHINA — China’s plastics industry has bid farewell to the high growth period and continues to slow down to a mid-speed phase.

That’s according to speakers at the 2014 China Plastics Industry Conference, held May 27 in Hangzhou. They also reached consensus on the urgency for the industry to change and upgrade.

China’s plastics industry went through “leaps and bounds” in 2010 and 2011, pulled back significantly in 2012, and operated in a lower growth development stage in 2013 and the first quarter of this year, said Cai Daying, deputy general secretary of the China National Light Industry Council.

He said turmoil in the financial system as well as the depreciation of the Chinese currency earlier this year have led to thinning profits for the industry, and the current state will last a while.

Specifically, the plastics industry is plagued with five major issues, according to Zhao Jungui, deputy president of the China Petroleum and Chemical Industry Federation. They include weakness in core industry capabilities and innovation; overcapacity and vicious competition, safety and environmental issues; an unsound market system; and the rigid administration of the government.

Ma Zhanfeng, general secretary of the China Plastics Processing Industry Association, said it’s imperative for the industry to change and upgrade. “Otherwise, [it will face] a dead end.”

He continued to point out that it’s critical for the upstream materials industry to transform and upgrade first. “If it doesn’t do so, it will be very difficult for the downstream [industry] to transform and upgrade.”

China’s plastics industry is still a sunrise industry though, Ma added, with plenty of opportunities ahead of it.


Comments

Speakers: China's plastics industry must change now

Isaac Li
PLASTICS NEWS CHINA

Published: June 11, 2014 11:31 am ET
Updated: June 11, 2014 11:35 am ET

Post Your Comments


Back to story


More stories

Image

Plastic Omnium makes China investment push

February 26, 2015 4:35 pm ET

Three of the six new plants that automotive molder Plastic Omnium SA plans this year will be in China, part of a broader push it’s making in...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events