China's plastic pipe production climbed 10 percent in 2013
China's plastic pipe production climbed 10 percent in 2013
Statistics show that China's pipeline industry groups China plastic pipe production rose 10% last year to 12.1 million tons, mainly by the accelerating urbanization process, rural drinking water system expansion and government infrastructure spending.
China plastics processing industry association professional committee of plastic pipe, secretary general of the zhan-jie wang said that this year's growth is likely to slow down to 5-10%, reflects China's overall economy slowing, slowing, but there are many to the long-term development of the pipeline industry opportunities.
'in the past few years, China's plastic pipe industry has been developing rapidly,' he said in an interview at the annual meeting in kunming, yunnan province, April 1-3. Now, it's not just plastic pipes, but other industries are slowing their growth and paying more attention to quality.
Zhan-jie wang in other industries, he says, is the issue of China's population is from rural to urban migration in great quantities, estimated to this part of the population will reach 80 million in 2020, equivalent to the German population, this will continue to boost demand growth.
Industry officials also pointed out that China's efforts to boost construction in the western region, such as yunnan province, which is hosting the conference, will boost demand.
'these trends will bring many opportunities to the development of the plastic pipe industry,' Mr. Wang said, but he said there are still questions about whether the government will implement all its infrastructure projects as scheduled.
Both speakers and industry executives spoke of the challenges faced by the industry, including the severe overcapacity problem. The meeting attracted 430 people.
China's plastic pipe production last year was only about 50 per cent of capacity, according to the association. 'this has led to intense competition in the industry and accelerated development of large companies, while small companies are in a difficult situation and even bankruptcy,' the industry association said in its report.
Jiang jiancheng, an executive at wang ping guan group, which is based in yingkou, liaoning province, says market dynamics are driving consolidation in the industry.
He said the pipeline industry grew at an average rate of 10 percent last year, but he said some companies, including wang ping guan, are growing faster. China's largest manufacturer of plastic pipes, liansu group holdings LTD., a listed company, reported a 17% increase in output last year and 20% in operating income.
'the success of a company is increasingly dependent on its management, innovation and cost control,' Mr. Jiang said. 'you can't just see the speed of growth.'
'the market is growing fast, but it also depends on the company's ability,' he told plastic news after the meeting.
He said the company has three manufacturing plants, mostly imported materials, including materials from Germany and South Korea, to better control quality.
The association's statistics show that although China's pipeline industry currently has 6,000 to 10,000 plastic pipe production companies, the association's 400 member companies already account for about 70 percent of the country's total production.
'the industry should focus more on developing its own technology, rather than relying on imported technology,' said qian guijing, chairman of the China plastics processing industry association. He also advocates a response to China's slowing economic growth by focusing on innovation rather than growth.
'you can't lie in the past,' he said, 'because things are different now.'
He points out that oil and gas pipe is the domestic pipe industry should focus on the research field of an industry, because the pipeline performance requirements is high, if the enterprise can meet the quality requirements, can lead to higher profits.
Pipe manufacturers in shandong liaocheng although plastic co., LTD., general manager of Wang Quanlong, said he believes in north China is expected to appear larger pipe manufacturers, reflecting the current trends and enlarged pipe producers in south China.
He said the company plans to issue an IPO in 2016, hoping to raise funds for expansion
