Oct 31, 2008

Blink momentum of rapid development of rubber industry overcapacity can not be ignored

With China's petrochemical, electronics, machinery, instruments and meters, light industry and civilian areas such as the rapid development of the domestic demand for rubber on the blink have also increased significantly, and is accompanied by many domestic enterprises have joined the industry. Resulting in the industry of blind investment and over-capacity, redundant construction and other issues have become increasingly prominent, severely restricted the development of the industry. At the same time, blink rubber market to be very chaotic, disorderly competition seriously. Some companies rely on price war, sales of low-cost to seize market, the market competitiveness of enterprises obviously on the low side, the industry has become increasingly prominent investment risk.

Eyeing foreign-funded enterprises on August 21, one of the world's top 500 of the Henkel Group of Germany in Beijing announced that its well-known brands in the Chinese-Thai music sync with the global launch of a new series of instantaneous rubber products, solutions and new packaging to further open up Chinese market .

Henkel Group, said that not only through technological innovation and enhance the quality of the users continue to meet the diverse needs, but also hope to enhance the rubber industry as a whole blink of an industry standard, to play the lead role in the development of the industry. Blink rubber that is cyanoacrylate adhesive and the types of derivatives, is the unique properties of a class of fast-curing one-component products, metal and non-metallic have a very strong bond, has been widely used in petrochemical, electronics , Machinery, instruments and meters, and light industrial areas such as civilian. In recent years, China's rubber industry was instantaneous rapid development of the annual growth rate of nearly 30% of all types of adhesive products to become one of the fastest growing types of plastic, but at the same time the industry there is disorderly competition, such as the proliferation of counterfeit and inferior goods问题. Henkel Group in 1990 to enter the Chinese market, its current four major business units have access to all of China, its output value in China's market in the Asia Pacific region accounted for more than 30% of GDP. Henkel Group has been increasing in China's strategic investment, actively explore the Chinese market.

Domestic-funded enterprises overcapacity past five years, China's rubber production was instantaneous rapid development of the trend, output from 1,500 tons in 2000, growth in 2005 to 5,500 tons, the average annual growth rate of 29.7 percent, China has become a growth adhesive products One of the fastest-growing types of plastic. The next 5-10 years, China's rubber production will continue to blink at an annual rate of about 15% growth.

Although the blink of China's rubber industry has made considerable progress, but problems have been outstanding. First, the market is more chaotic, disorderly competition seriously. As the blink of China's rubber production capacity is far greater than demand, market competition, some companies price war on each other to keep the prices down, low-cost sales to seize the market, squeezing the profit margin products; Yicichonghao a small number of enterprises in Add an excessive amount of adhesive solvent, to the detriment of the interests of consumers; more individual enterprise against other people's intellectual property and trademark rights, manufacture and sale of fake and inferior goods WU, seriously disrupting market order. Second, the domestic manufacturing enterprises, small-scale, production technology and equipment behind. According to statistics, China's rubber production blink of about 50 companies, but more than 30 workshops for small enterprises, with an annual production capacity of only 100 kilograms to several tons ranging from a few of these business-to-low utilization rate of resources, Environmental pollution, product quality assurance without.

Bank analysis of the letter:

Although China's economy in a period of high-speed, but at the same time over-supply in the market cycle, domestic demand will be less than the long-standing problem of overcapacity in China. At present, rubber blink enterprises to invest in excess, redundant construction highlighted, production capacity is relatively dispersed, the lower the utilization rate of resources, market disorder, manufacturing and selling fake and inferior goods WU, infringement of intellectual property rights, and other wrongful acts occur from time to time. In addition, the entry of foreign enterprises in the future will be even more intense market competition, some enterprises have been out of the inevitable. Therefore, the bank recommended a moderate reduction in the blink of the rubber industry's credit, put in a specific direction for the tightening in SME financing and capacity in the following 10 tons of foreign-funded enterprises within.

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