Strengthening macroeconomic regulation, curbing blind investment, and coordinating supply and demand are key issues Industry experts recently pointed out at the 2007 Seminar on Cast Film (CPP, CPE, PVB, etc.) Market and New Technology held in Taian, Shandong, that the current development of the cast film industry in China Faced with the unfavorable situation of overcapacity, fierce competition, and declining corporate profits, strengthening macroeconomic regulation, curbing blind investment, and coordinating supply-demand relations are the top priorities for the industry to emerge from the trough and achieve healthy, orderly, and sustainable development.
Xu Zhiqiang, head of the preparatory group for the China Film Association's Precast Film Special Committee, explained that as the domestic demand for CPP market has rapidly increased from 80,000 tons in 2000 to 400,000 tons in 2006, the investment enthusiasm of enterprises has increased. At the same time, due to the rapid development of domestic cast equipment technology since the second half of 2004, the threshold for entry into the CPP industry has been drastically reduced, attracting a large number of companies to join, and the annual production of CPP has shown a linear upward trend. According to statistics, at the end of 2006, China's CPP production line was close to 230, with a total annual production capacity of more than 650,000 tons, while the market demand was only 400,000 tons. In order to ensure the operating rate of the production companies, regardless of rising raw material prices, competing prices, CPP profit margins shrink. In 2005 and 2006, there was a serious oversupply of CPP in our country, and the industry entered an unprecedented low period. Due to the low investment threshold of CPE films, the industry competition is extremely fierce. In the first half of 2007, the operating efficiency of some large-scale filming companies continued to decline. In addition, PVB industry profits are also falling.
Liao Authentician of the China Plastics Processing Industry Association pointed out that the predicament faced by the cast film industry shows that in any industry, development cannot be without restraint. The growth of production capacity must be coordinated with the growth of demand, and the economic growth model driven by investment cannot. Long time. Strengthening the macro-control and controlling the blind growth of production capacity are problems that need to be solved in the CPP industry. Only when the production capacity is reasonably controlled and supply and demand reach a balance, can the efficiency of the enterprise be improved. The healthy development of the cast film industry requires the active participation of the business community. He called for the production companies to adjust their business concepts as soon as possible and change the concept of fighting prices, producing output, and rushing to the market. The development of enterprises requires rational competition, and they must rely on technology, quality, and profits. While promoting the development of the industry, enterprises will also surely promote their own development and growth.

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