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Published on : Jun 18, 2014

China’s plastics industry is no longer facing a high growth period and this condition has brought it to a scenario of a slow down to a mid-speed phase.

Many speakers at the 2014 China Plastics Industry Conference said at the event held on May 27 in Hangzhou that the urgency for the industry to change and upgrade has reached consensus.

China’s plasticsindustryhas faced tremendous changes in 2010 and 2011 and it stimulatedits growth once again in 2012, operating in a lower growth development stage in 2013, added CaiDaying, deputy general secretary of the China National Light Industry Council.

He also said that the country has been facing depreciation in its currency and turmoil in the financial systems hasled it to thinning profits for the industry. This situation is likely to last in a while.

Also, according to Zhao Jungui, deputy president of the China Petroleum and Chemical Industry Federation, the plastics industry is affected with five major issues. These includeweakness in core industry capabilities and innovation; safety and environmental issues;overcapacity and vicious competition, unsound market system; and the rigid administration of the government.

Ma Zhanfeng, general secretary of the China Plastics Processing Industry Association, said the industry needs change and an upgrade. He also pointed out how important it is for the upstream materials industryto transform and change. However, if it doesn’t change, it will get difficult for the downstream to upstream. Ma added the plastics industry in China is still a sunrise industry with plenty of opportunities ahead of it.