China's plastics industry is the core of plastic processing, covering the entire spectrum of synthetic resins, auxiliaries and additives, plastic processing machinery, and molds. Since the launch of the 11th Five-Year Plan, the plastics industry has been steadily shifting from a period of rapid expansion to a trajectory toward becoming a global leader in the sector.
New Favorite of the Plastics Industry in 2006
2006 marked the first year of the 11th Five-Year Plan. Despite adverse factors such as soaring raw material prices, increasingly fierce market competition and severe overcapacity in some sectors, the plastics industry stepped up scientific and technological innovation, tapped internal corporate potential, actively explored the international market and achieved remarkable results.
Steady Economic GrowthIn 2006, major economic indicators of China’s above-scale plastics enterprises grew by over 20%, with some growing faster than the national GDP growth rate of 25%. The main business revenue increased by 23.96% year on year, the total profits and taxes rose by 27.21% year on year, and the total profits surged by as much as 30.36% year on year. The technical level of the plastics industry improved rapidly, along with the enhancement of product quality. However, due to technical barriers and anti-dumping measures faced by Chinese plastic products in the international market, import growth accelerated in 2006 while export growth slowed down.
Rapid Production GrowthIn 2006, the output of plastic products of China’s above-scale enterprises reached 28,019,000 tons, a year-on-year increase of 18.68%. The output of plastic pipes and other similar products grew by over 30%; plastic profiles, plastic filaments and woven products rose by 20%; and plastic packaging boxes and containers increased by 18%.
Increasing Industrial ConcentrationThe developed regions of the plastics industry are mainly distributed in the southeast coastal provinces, with distinct industrial cluster effects. In 2006, the output of plastic products in Guangdong, Zhejiang and Jiangsu provinces reached 15,925,600 tons, accounting for 56.8% of the national total output of plastic products. All regions registered growth in the plastics industry to varying degrees, but the regional imbalance remained largely unchanged. The distribution pattern of high-energy-consumption, low-processing-technology and labor-intensive products gradually shifted to the central and western regions.
Distinct Regional Characteristics of Various ProductsGuangdong Province led the nation in the production of plastic pipes and fittings, plastic packaging boxes and containers, daily-use plastic products and other plastic products, accounting for 23.4%, 13.9%, 27.7% and 43.3% of the national total output respectively. Zhejiang Province ranked among the top in the country in plastic film, plastic leather and synthetic leather production, with respective shares of 24.9%, 48.7% and 34.4% of the national total output. Jiangsu Province dominated the nation’s foam plastic production, accounting for 44.1% of the national total. Shandong Province took the lead in agricultural film and plastic woven products, making up 23.8% and 28.0% of the national total output respectively. Liaoning, Jiangsu, Anhui and other provinces emerged as major producers of plastic profiles, accounting for 16.6% of the national total output.
Leapfrog Development During the 11th Five-Year Plan Period
During the 11th Five-Year Plan period, the plastics industry will focus on optimizing and upgrading the industrial structure and strive to improve the industrial technical level. The annual growth rate of plastic product output is targeted at 10% from 2006 to 2010 and 8% from 2010 to 2015, with the output of plastic products expected to reach 35 million tons by 2010 and 50 million tons by 2015.
Agricultural plastics (including plastic mulch films, agricultural water-saving equipment, etc.) and geosynthetics play an important role in building a moderately prosperous society and a new socialist countryside. These sectors should be prioritized for intensified development to further enhance the performance of key products and meet the needs of modern agricultural development.
Plastic packaging materials and plastic products are closely related to the quality of life of 1.3 billion people. To build a resource-saving and environment-friendly society, we should encourage the development of new materials, adhere to the principle of conservation and green development, strictly comply with product standards and promote standardized application procedures.
The application of engineering plastics and composite materials—high-value-added and high-tech products—will expand with the development of the economy. Efforts should be made to significantly enhance the capabilities of original innovation, integrated innovation and re-innovation based on introduced technologies.
For bulk plastic products (including pipes and fittings, profiles and doors/windows, plastic products, calendered products, rotational molding and hollow products, biaxially oriented materials, plastic packaging films), enterprises must strive to build independent brands, improve product quality, increase product variety, meet diversified market demands and expand market share.
We should improve plastic processing technologies and processes to achieve energy conservation, consumption reduction and cleaner production, raise product quality and enrich product variety. Attention should be paid to the design and manufacturing of plastic machinery and molds, and enterprises should be equipped with advanced plastic processing equipment.
Products such as fitness equipment, medical plastics and daily household plastics (including plastic toys, household electronic appliances) must meet health, environmental protection requirements and relevant international standards.
To reduce environmental pollution, we should strengthen the treatment and recycling of waste plastics and the R&D of biodegradable plastics. Emphasis should be placed on the protection and rational utilization of energy resources to reduce energy consumption. Waste plastic treatment and recycling will play a unique role in environmental protection, promoting the vigorous development of a circular economy.
To protect the ozone layer and eliminate ozone-depleting substances (ODS), thereby shielding humans from ultraviolet radiation and related diseases, China will realize the transition to fluorine-free foam production by the end of the 11th Five-Year Plan period, fulfilling the commitments signed with the United Nations to ban the use of ODS-based blowing agents.
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