SHANGHAI \u2014 The greening of China\u2019s domestic building materials market is giving the plastics industry a boost. At the Green Building Material Exhibition, the trend for \u201cgreen\u201d was apparent, even if one had to search hard for companies for whom \u201ceco\u201d was not just an advertising gimmick.<\/p>\n
One company showcasing its sustainable products says that the market for green building materials has huge potential for plastics processors. Nanjing Dayuan WPC Material Co, Ltd. has been producing wood-plastic composite flooring for the past 8 years, but recently began putting its efforts into a new product range, attractive noise barriers and green plant walls made from PVC and composites.<\/p>\n
Trading Manager Irene Lee said in an interview with Plastics News that there was an obvious jump in interest in eco-products around 2006. Before, she said, people looked down on the idea of using recycled materials.<\/p>\n
\u201cSociety is changing,\u201d she said. Last year, the company produced 20,000 tons of wood-plastic composites.<\/p>\n
There\u2019s a bright future, Lee said, but added, \u201cit really depends on government attitudes.\u201d Since the company\u2019s biggest customer base is government clients, she is banking on increased interest in and regulations that promote green building.<\/p>\n
Another company at the show, Shandong Huifeng Wood-Plastic Profile Co., Ltd. was just established last year, but sales associate Theresa Sun says business is great.<\/p>\n
\u201cOur CEO was in the construction business but he saw the need and opened this business,\u201d she said. She added, \u201cWe\u2019ve got customers all over China and are working on the foreign market.\u201d<\/p>\n
The company, which produces replacement wood made of PVC foam board for use in advertising, furniture and home d\u00e9cor, is planning more investment, including buying new equipment to outfit a second workshop. The first workshop has 16 production lines, and the second workshop will almost double that total.<\/p>\n
The company has produced more than 2,000 tons of product to date. Last year the company did $8.1 million (RMB 50 million) of business and this year they are aiming for $35.7 million (RMB 220 million) in sales. The company is also preparing the paperwork to go public on a local stock exchange.<\/p>\n
\u201cEven though we\u2019re new, we\u2019ve caught the wave of this trend,\u201d she said.<\/p>\n
Components makers also are experiencing a boost. Jinhua Plastic Products Co. started producing a range of vents for air exchange systems three years ago. The trend is looking up for them as well.<\/p>\n
\u201cLast year they [fresh air exchange machine manufacturers] wanted samples. This year the orders are coming in,\u201d said a representative who did not give her name. \u201cWe\u2019re optimistic.\u201d<\/p>\n
While heavy monsoon-like weather kept the attendee numbers down the first day, many did choose to brave the rain. \u201cEven though there aren\u2019t a lot of people here, we\u2019ve had many visitors to our booth. People are interested.<\/p>\n
A company manufacturing tools used by extruders of decorative molding says the wood replacement market is one with good potential. He\u2019s experiencing a 20 percent annual increase in sales to the sector. Two years ago the company did $1.6 million (RMB 10 million) in business, but last year it reached $3.2 million (RMB 20 million).<\/p>\n
\u201cStarting from two years ago, our customers are getting government incentives for using new technology\u201d he said. The result is that more companies are getting into the sector.<\/p>\n
Still the boom is most likely going to be felt most by manufacturers. Hebei Zenovo Recycling Resources Co. Ltd. is enjoying real success through the green building materials boom. With more people renovating, there is a high demand for products, said general manager Zheng Jian. The company makes realistic-looking marble, wood, and ceramic moldings from recycled polystyrene foam. \u201cWe\u2019re a replacement business. The development of this industry is really fast.\u201d<\/p>\n
Still it may not be developing as fast as they had hoped. So far their sales are up 30 percent from last year, but their original goal was to double sales. The company still has plans to expand its factory in Hebei in the next one or two years, which will double the number of production lines.<\/p>\n
Optimism is high, as companies look to increasing numbers of wealthy Chinese to support their business\u2019 growth. A manufacturer of imitation grass and turf with clients such as Carrefour, Wal-Mart, and Ikea said that although their foreign market is highly developed, the China market is small.<\/p>\n
\u201c[The] China market is just opening,\u201d said Shi Jin, a foreign sales associate with Forest Grass. People don\u2019t really know what our product is. Once they learn about it, I believe the market has huge potential.\u201d She said her company was actively seeking more domestic clients to simplify shipping. \u201cThe Chinese population is growing, there are more rich people and more villas,\u201d she said. The company is already thinking about moving into a new factory within the next two years.<\/p>\n
Even so, companies at the show acknowledged that the production costs sometimes cause problems for businesses in the market, especially the domestic market.<\/p>\n
\u201cThe orders are increasing, from last year onwards, but in China this is a new product,\u201d said Qu Xue Song, general manager of Shanghai Haixing Plastic Industry Co. Ltd., which produces PVC flooring for a mostly foreign market with two factories. Orders are increasing from the domestic market, but the problem remains the price. It\u2019s more expensive than wood flooring, although he claimed that it would last substantially longer than traditional wood. As a result he said, \u201cwe don\u2019t want to expand. Labor costs are high and we are already highly automated.\u201d<\/p>\n
Another flooring manufacturer said he has to educate his customers who always want the cheapest price. Speaking frankly, Paul Chen, CEO of YW Systems held up one of his products and said, \u201cThe problem is everyone wants cheap,\u201d including European and American clients, he said, not just his Chinese clients.<\/p>\n
\u201cI tell them everything that is made in China has a range from good quality to bad quality.\u201d Some flooring is poor quality because it is made from unsorted Chinese recycled plastic, he said.<\/p>\n
His efforts at education seem to be paying off. Since making a special trip to visit his European clients last year to talk to them about quality differences, his orders have changed. Before, 80 percent of his clients were buying flooring made from unsorted Chinese scrap, but now orders for higher quality flooring are up 10 percent.<\/p>\n
Next year the company will buy land for a larger factory and triple the number of production lines.<\/p>\n
Another problem for Chinese companies is undercutting by copycat competitors. Sentai WPC Integrated House Co. Ltd. manager Bao Guangyi, one of the biggest prefab wood-plastic composite manufacturers in China, said the company is doing extremely well, but faces the challenge of smaller companies using its name to sell lower-quality goods.<\/p>\n
The company is seeing a 20 percent yearly increase in sales and last year it produced 80,000 tons. Next year the company will go on the Shenzhen market and hope to compete on an international level.<\/p>\n
But perhaps most telling was that Bao had no business cards to give out. He\u2019d already handed them all out to eager potential clients before the end of the first day.<\/p>\n","protected":false},"excerpt":{"rendered":"
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