Blog

2018

Polymer material companies need to transform

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From January to June, the total profits of industrial enterprises above designated size decreased by 0.7% year-on-year, 0.1 percentage point narrower than that from January to May. The total profits in June decreased slightly by 0.3% year-on-year, while they increased by 0.6% in May. The main operating income of enterprises above designated size in the rubber and plastic products industry was 1,455.32 billion yuan, a year-on-year increase of 5.3%, and the total profits were 82.94 billion yuan, a year-on-year increase of 5.1%.

Although China's plastic consumption ranks first in the world, its per capita consumption is only one-seventh of that in developed countries and one-quarter of that in moderately developed countries. This shows that there is still a lot of room for market development in my country's plastics industry in the future.

In 2015, the world economy is still in a period of consolidation, with a bottoming out and a potential for growth. For plastics companies, the economic shift is often accompanied by pain, especially in the early stages of entering a new normal. Growth stalls, profit declines, and confusion will severely test the business development of many companies.

In 2015, for polymer material enterprises, transformation and upgrading are still imminent and there is still a long way to go. Cost reduction, efficiency improvement, and revenue and expenditure reduction are undoubtedly the most realistic means. Cost reduction and expenditure reduction are to sort out business processes, cut down on unreasonable cost expenditures, especially financial expenses; they are also to optimize enterprise management, plug leaks, and stop bleeding points. Efficiency improvement and revenue increase are to strive to expand product applications and open up market channels, especially to focus on expanding broad new international markets; they are also to accelerate scientific and technological innovation, produce more differentiated, high-profit, high-precision and cutting-edge products, and open up new market blue oceans.

With the stabilization of the market volatility trend, the plastics industry will surely present a new picture of stable improvement. I believe that with the joint efforts of plastics and related industries and the strong assistance of relevant government departments, the plastics industry will surely achieve greater growth.