|
Output & its value
China coatings Industry has
experienced the development of market economy and its output and
value of output have increased greatly since 2001 (Table 1).
Table 1
CLICK TO ENLARGE
[GIF]
The output and its value of China coatings have been raised by
two-digit percent every year which are higher than the growth of GDP
(7~9%) after entering the tenth-five-year plan. With regard to
output, it has increased super-normally by more than 1,000,000 tons
every year in 2004, 2005 and 2006, respectively. In 2007, the pace
of growth decreased to a rational level 12.90%, but still reached to
5,972,800 tons and approached the America output of 7,000,000 tons.
In the first half year of 2008, the output has been raised stably
and will keep a steady development. China coatings industry has
been developed into a RMB 150 billion rising industry after the
ever-increasing growth year by year. The production and profit of
China coatings industry have been greatly effected due to several
factors such as CPI rise, price rise of raw materials, cost rise of
labour force for the implementation of new labour law, adjustment of
export drawback policy and upgrade of environment protection and
production security. The cost of coatings production will increase
dramatically and the profit of industry will become more slender.
The China coatings industry has entered into an era of small margin
and in the next few years, the acceleration of profit maximisation
will speed up the step of industry integrity and provide some
development opportunities.
Regional distribution
The China coatings industry can be
classified into four regions: Yangtze River Delta (Shanghai, Jiangsu
and Zhejiang); Pearl River Delta (Guangdong); Circum- Bohai Bay
(Beijing, Tianjing, Hebei, Liaoning and Shandong); other areas (the
rest of provinces and areas). The regional distribution of China
coatings market is shown as Figure 1 and the detailed data
are listed in Table 2. opportunities.
|
Figure 1
CLICK TO ENLARGE
[GIF]
|
Table 2
CLICK TO ENLARGE
[GIF]
|
In 2007, with the impact of the China
coastal economy development strategy, Circum- Bohai Bay showed
very strong growth at the rate of 22.15% which is about 10%
higher than the national average growth rate 12.93%, its output
proportion in whole nation increased to 20.92%. It can be predicted
that in the next few years in this region, the growth pace will be
further strengthened. The output in Yangtze River Delta increased
by 15.92% and the growth step of output in Pearl River Delta
(Guangdong) slowed down to 6.67%. The other areas showed a
comparative low growth rate at only 5.96%. But according to the
statistics, central and western regions including Hunan,
Hubei, Henan, Anhui, Jiangxi, Sichuan and Chongqing showed very
high developing rates from 17.8% to 35% even to 85.4%, which is
promising to be explored as the fourth base of China coatings
industry. That is decided by some factors such as midwest
development, coastal industrial structure adjustment, strict
environmental protection and the transfer of some industries from
coastal areas to midwest areas.
The coatings output of top 10 major
provinces or cities in China in 2006 and 2007 is listed in Table 3.
It can be seen that the top 10 provinces or cities contributed
about nine tenth and the top 5 accounted for about three fourth of
the national output in 2006 and 2007. In 2007, Liaoning
increased by 38.86% which was the highest rate in top ten areas and
then Henan by 35.02%. Shandong increased by 27.49% and substituted
Zhejiang at rank No. 4 in 2007. Fujian decreased by 30.28% in 2007
and was the only one of top 10 whose output decreased. It is
predicted that the output of Fujian will reduce again.
Table 3
CLICK TO ENLARGE
[GIF]
According to the output data from the
State Statistics Bureau, the top 10 companies in 2006 are listed in
Table 4.
Table 4
CLICK TO ENLARGE
[GIF]
Guangdong Hua Run Company had the output of 102,600 tons in
2006 and ranked No. 1. The top 10 companies produced totally
751,600 tons which accounted for 14.21% of the whole national output
5,289,000 tons. |
|
|
Recently, the merger and
acquisition between international corporation reaches a new peak.
Through merger and acquisition, multinational capital could form the
comprehensive advantages in terms of industrial and civil coatings
and construct a market barrier to the development of China coatings
industry. In domestic, Meitai recalled 96,700 toys applied coatings
manufactured by local coatings companies in August 2007, which
pushed China coatings industry into a high strung state.
Additionally, the cancellation of coatings export drawback brought
seriously affect. All of these factors will doubtlessly speed up the
industry structure adjustment and new technology development in
China coatings industry.
Information is extracted from Jan 2009
issue of China Coatings Journal (CCJ), full version (in pdf format)
is available
here.
Click
here again to view the contents of the latest issue. |
|
