1 2 Plastic Water example essay topic

China Plastics Industry Market Report Prepared by: Ad sale Exhibition Services Ltd Date: October 23, 2004 PVC 5100 4006.5 2292.4 45.3 PS 1049.6 1009.2 1564.3 53.9 ABS 494.6 475.6 1790.1 21.4 Tota l 14444.7 13889.1 13071.2 158.4 Table 2: Apparent consumption of 5 major synthetic resin in China in 2003 Unit: ktonnesType Output Import Export Apparentconsumption Import / Apparentconsumption (%) PE 412.96 4690.1 25.9 8793.8 53.3 PP 426.82 2734.3 11.9 6990.6 39.1 PVC 400.65 2292.4 45.3 6253.6 36.7 PS 100.92 1564.3 53.9 2519.6 62.1 ABS 47.56 1790.1 21.4 2244.3 79.8 Total 1388.91 13071.2 158.4 26801.9 48.8 Table 3: 1999-2003 Statistics on approved import & export of wasted plastics Unit: ktonnesYear Approval quantity Actual import Increase of import over the same period in previous year (%) 2003 5434 3023.9 23.02002 3870 2458 10.32001 4580 2227.6 11.02000 3238 2007 44.6 Table 4: 2002-2003 Production Capacity of plastic additives Unit: ktonnesPlasticadditive Number of producers Production capacity Output Apparentconsumption 2002 2003 2002 2003 2002 2003 Plasticizer 50 1500 1500 650 550 1000 950 Heat stabilizer 90 200 210 80 78 100 105 Fire retardant 70 150 170 70 80 80 90 Impact modifier 60 100 120 70 75 80 90 Foaming agent 45 80 80 60 60 50 50 Lubricant 60 70 75 43 45 50 55 Antioxidant agent 45 20 22 18 20 30 33 Light stabilizer 30 9 10 1.5 2 4.5 5 Others 80 80 90 65 70 80 85 Total 550 2200 2377 1050 980 1474.5 1463 Note: 85% of the quantity listed in Table 4 is used in plastics processing Table 6: Customs statistics on import of plastic products between January to December 2003 Import volume (metric tonnes) Import value (1000 USD) Type of product AccumulatedvolumebetweenJanuary to December Increase over the same period of the previous year (%) AccumulatedvolumebetweenJanuary to December I (%) Plastic product 1640790.9 1.26 5516178 22.041. plastic filament and profile 11088.9 -5.49 28237 12.562. Plastic pipe 31214.7 16.74 176962 25.903. Plastic board and sheet 870246.8 1.80 2425740 19.184. Artificial leather, synthetic leather 118395.9 -11.88 503586 -2.495. Plastic flooring products 32663.4 35.56 51140 26.80 Data obtained from China General Administration of Customs In general, there is a favorable trade balance in the import and export of plastic products though such favorable balance is mainly the result of the increase in the total export volume of plastic products. So far high added value and high technical products among exported products are relatively few in number and mainly concentrated in limited number of countries and regions.

Most enterprises lack experience in planning multi-national business strategy and standard operation format. 1.3 Briefing of the key enterprises According to statistics from January to December 2003, there were all together 8237 companies producing plastics products in China with reasonable production scale, 10% of which were large and medium sized enterprises. Companies with turnover over 100 million amounted to 527, achieving total product sales revenue of RMB 136.84 billion. This means that 6.3% of the companies in the industry accomplished 47.7% of the total revenue in plastics products.

In 2003, there were 15 plastic processing companies achieving RMB 1 billion of product sales revenue. Among them, three companies achieved sales revenue over RMB 3 billion and 6 companies over RMB 2 billion. The fast development of plastics product industry has accelerated the speed of industrial agglomeration. 1.4 Situation in the first half of 2004 From January to June 2004, the total output of the major plastics products from companies with reasonable production scale reached 87.38 metric tonnes, which was an increase of 14.2% over the same period of the previous year. economy; l The production of pipes, profile, calendered products, biaxial stretching material and films shall develop gradually in the direction toward economic scale; l In order to protect the ozone layer, foam plastics is produced without CFC; l To reduce the impact on the environment, R&D on recycling plastics wastes and degradable plastics will be strengthened. l In order to develop new kinds of plastics products and raise the quality, more attention should be paid to the development and production of plastics machinery, mould and tools.

2.2 Analysis on the market demand of the Chinese plastics industry 2.2. 1 Agricultural plastics China is a large agricultural country with 768.5 million populations living in the vast countryside. This condition has determined agriculture is the basis of the national economy. Agricultural plastic products have become indispensable products and measures for modern agricultural development to fight against natural disasters and achieve stable, high yield, high quality and efficiency in the farming process. They have been widely used in the agriculture, forestry, animal husbandry and fishery industries. Agriculture has become the second biggest consuming sector of plastic products only follow to the packaging industry.

According to different applications, agricultural plastics can be classified into agricultural sheathing materials; water pipes and equipment for water conservation; agricultural packaging material as well as various materials for farming, planting, raising, breeding and storage. According to the prediction made by the Chinese Ministry of Agriculture, by 2005, the total area to be covered with mulch film and awning film will reach 550 million mu and 50 million mu (1 mu = 0.0667 hectares), which will require approximately 3 million tons of plastic film; 1.7 million tonnes of plastics shall be needed for water pipes in water saving irrigation and leakage prevention. It is predicted that, by 2005, agricultural plastic products will reach 4.7 million tonnes, accounting for 19% of the overall production of plastic products. 2.2. 1.1 Plastic film for agricultural use Agricultural film is the most important part of the Chinese plastics industry and essential production material in the agricultural development towards modernization. Since the beginning of the production of agricultural film till now, China has taken the 1st place in the world in the total output and the total covered area which approximately account for 1.6 times of the total amount from all the rest of the countries over the world. According to incomplete statistics, there are close to 1000 producers of agricultural film in China with production capacity of over 2 million tonnes.

Among them about 60 companies have production capacity of over 10,000 tonnes and about 30 companies are large scale key enterprises whose production capacity and annual output account for 60% of total output in China. Annual consumption on green houses has reached 700,000 tonnes with covered area reaching 50 million mu. Annual sales volume of field is about 450,000 tonnes covering area of over 220 million mu. The actual consumption of agricultural and field film has surpassed 1.2 million tonnes. 2.2. 1.2 Plastic water saving equipment China is one of the few countries in the world with the least fresh water resources.

The possession of fresh water per capita on is 1/4 of the world amount on average. It ranks as 109th in the world. It is predicted that by 2005, the market demand on plastics in China will reach 1.5 million tonnes. 2.2. 2 Plastics for packaging In China, the most application of plastics is in packaging. Its development is much faster than other conventional packaging materials. In year 2004, the annual output of plastic packaging material products will reach 5.4 million tonnes and in 2005, it will reach 6.25 million tonnes. 2.2.

2.1 The development of soft packaging enhances strong demand for BOPP film With entry into the 21st century and China as a member of the WTO integrated into global economy, both the domestic demand and the development of foreign trade will be further promoted. This will pull BOPP and the soft packaging products into new period. According to the prediction, it is estimated that the market demand for BOPP film will reach 1 million tonnes in 2005, an annual increase of over 20%. The development of soft packaging industry provides a favorable market opportunity for the BOPP sector. 2.2. 2.2 Almost all the BOPP film production lines are imported ones with exceeding production capacity Towards the end of the According to report from Plastics Weekly, the demand for medical packaging will increase 4.3% year by year and plastic packaging will experience the highest growth. Some investigation shows that 80% of the demand of packaging comes from 8 major nations that produce medicine including China with the highest increase rate in medical packaging.

Regarding the type of packaging, the demand for bubble type of packaging and plastic bottles will experience remarkable increase. It is seen that there is fast development for medical plastic products. According to the ministry of public health, the market volume for medical plastics will reach RMB 6-10 billion in 2005 with great potential. 2.2. 9 Strong growth in function plastics 2.2. 9.1 Huge potential for antibacterial plastics in toy industry According to estimation, the output of antibacterial additives was 150 tonnes in 1999. The sales volume was RMB 12 million.

The output value of antibacterial products was RMB 10 billion. It is predicted that in 2005 the output of antibacterial products will reach 500 tonnes with output value of RMB 40 billion. 2.2. 9.2 Electrical, thermal, photo, magnetic and fire retarding functional plastics Through changing the molecular structure of the polymer, the market can be further developed by making plastic material conductive to electricity, shielded against electro-magnetic field, magnetic, conductive to heat, transparent, sensitive to light or fire-retardant. 2.2. 9.3 Filled, co-blended, reinforced and modified plastic materials In recent years, the development of inorganic stiff particles!