China's output of modified plastics to hit 8.53 million tons this year

As the new materials with good performance made by adding modifying agents to plastics, modified plastics have been increasingly applied in automotive, home appliance and other industries. China's output of modified plastics increased from 320,000 tons in 2000 to 5.84 million tons in 2009, and is expected to hit 8.53 million tons in 2012, according to a recent report from Reportlinker.

The report centers on the supply and demand, competition pattern of China modified plastics market, and highlights the market scale and current competition in four market segments including home appliance modified plastics, automotive modified plastics, energy-saving lamp modified plastics and wire & cable modified plastics. In addition, the report analyzes the operation of 18 modified plastics enterprises including Kingfa Sci. & Tech., China XD Plastics, and PRET.

The boom of China's modified plastics industry is largely attributable to the sustained development of home appliance, automotive and other downstream industries. The home appliance and automotive modified plastics market segments have huge growth potential. In 2011, the home appliance industry made up 54.1% of the consumption of modified plastics, while the automotive industry accounted for 34.1%, and the proportions are still climbing.

Modified plastics are the raw materials seeing the fastest application in the home appliance industry. As China is a large home appliance producer and consumer, the application of modified plastics may expect unprecedented potential, with the targeted demand for home appliance modified plastics in 2012 hitting 3.758 million tons. Leading enterprises in the market segment include Kingfa Sci. & Tech., Guangzhou Huadu Keyuan, Guangdong Silver Age Sci & Tech, and Zhejiang Juner New Materials.

The considerable demand for automotive modified plastics results from the growing market capacity of the automotive industry and the increasing application of plastic parts in automobiles. It's estimated that China's demand for automotive modified plastics will surpass 2.2 million tons in 2012. Leading enterprises in the market segment include China XD Plastics, PRET, and Beijing JuLingYan Plastic.

Kingfa Sci. & Tech. is the largest modified plastics manufacturer in China with the most varieties of modified plastics products. In 2011, the company's capacity exceeded 580,000 tons, while the estimated output exceeded 600,000 tons. In February 2012, Kingfa launched additional share issue and planned to invest RMB3.833 billion in five projects in Tianjin, Guangzhou, Kunshan and Mianyang, which are set to be finished by 2016 and increase the company's capacity by 1.23 million tons, including 800,000 tons of automotive modified plastics.

China XD Plastics is a major supplier in the automotive modified plastics market. In 2011, the sales volume of the company was 151,300 tons, up 33% year-on-year compared with the 113,700 tons in 2010, with the market occupancy in China's modified plastics market rising to 7.2% in 2011 from 5.4% in 2010. China XD Plastics is scheduled to expand its capacity to 300,000 tons by 2013.