Analyze the major problems in the domestic chemical building materials industry

China's UPVC pipe accounts for more than 80% of the entire plastic construction pipe. At present, there are more than 700 UPVC pipe and pipe fittings manufacturers in the country, among which 5 are producing 30,000 tons/year and 1-3 million tons/year. There are more than 20 of the above, and there are nearly 60 in the scale of 0.5-1 million tons/year. Typical enterprises include Shenzhen Bada, Guangdong Guangxi, Fujian Yatong, Ronglin Plastics, Zhejiang Shunda, Zhejiang Zhongcai, Ezhou Gudi, Xuchang Yisu, Changzhou Changtong, Shanghai Tomson, Sichuan Chuanlu, and Zhangzhou Plastic Factory. , Hebei Baoshuo, Yantai Plastic Factory.

Although the development of China's chemical building materials industry is relatively rapid, its problems cannot be ignored. Its main problems are as follows:

1, excess production capacity, the overall industry underemployment

With the great development of chemical building materials in recent years, many regions and enterprises have blindly invested regardless of their own conditions and market demand, resulting in excess production capacity. The profile production capacity of plastic windows has reached an annual output of 1 million tons in 1999. However, the actual output of the year was only over 300,000 tons, and 30% of the production capacity was utilized. Even in the year 2000 when the market for plastic doors and windows was surging, the output of profiles was doubled, and the operating rate of the entire industry was only 50-60%. China's plastic pipe production capacity reached 1.65 million tons, but the operating rate was only about 50%. Among them, the production capacity of aluminum-plastic composite pipes has reached 1 billion meters per year, but the actual output is about 300 million meters per year, and the operating rate of enterprises is less than 30%. The excessive production capacity caused excessive competition in the industry, resulting in a drop in product prices and a sharp decline in the average profit of the industry, which is not conducive to the future healthy development of the chemical building materials industry and the development of new technologies and new products.

2, the overall industry profit margin is small, mainly subject to PVC raw material prices

For the chemical building materials industry, which mainly consists of plastic pipes and profiles, the trend of the price of main raw material PVC PVC will directly affect the efficiency of enterprises. For one ton of plastic profiles, PVC accounts for 70-80% of the total cost, while other auxiliary materials such as AGR, titanium dioxide, CPE, composite stabilizers, and depreciation of plant equipment, management costs only account for 20-30% of the cost. about. PVC is a downstream product of the petrochemical industry. It has been severely affected by domestic restrictions on smuggled oil products and the limited production of oil from the International Petroleum Exporting Organization. Since 1999, the price of crude oil has gradually increased. The price of PVC has been 6250 yuan per ton since July 1999. It rose to RMB 8,000 per ton in 2000, an increase of nearly 30%. The price of profiles cannot be increased synchronously due to excess production capacity pressure, making the profit margin of the entire plastic profile and pipe industry greatly reduced. In this situation, only large-scale enterprises can achieve better results through mass production of diluted fixed costs, and maintaining relatively high sales prices with quality and brand effects. More SMEs either cut corners and shoddy, or struggled to survive.

3. The average production scale of the industry is relatively small. Future horizontal mergers and acquisitions are inevitable.

At present, the proportion of small enterprises in the domestic chemical building materials industry is too high, such as plastic pipes containing more than 1,000 companies such as PE and PP, and less than 30 enterprises of 10,000 tons, and more than 90% of enterprises are small enterprises of 3,000 tons or less. There are only more than 30 enterprises in the 10,000-ton scale of plastic window profiles. Nearly 40% of the production capacity is dispersed in nearly 1,000 profile companies. Door-window assembly enterprises are even more dispersed. There are more than 6,000 companies in total, and currently domestic The production capacity of plastic pipes and profiles has been able to meet the market demand within 3 to 5 years. Under the fierce competition in the chemical building materials industry, SMEs have been seriously underdeveloped and have little profit to speak of. On the other hand, some large-scale enterprise products with advanced technology, excellent quality, and large scale with good brands are still in short supply, and companies have a strong desire for expansion. Therefore, horizontal mergers and acquisitions in the industry will inevitably be avoided in the next few years. A few large-scale enterprises will complete the regionalization of the industry and the rationalization of product structure layout and the economical production of the company's production scale through mergers and acquisitions.