The Demand for Automotive Plastics in China is Predicted to Continue to Grow over the Next Five Years

DUBLIN, Ireland--Jan. 1, 20069, 2006--Research and Markets (http://www.researchandmarkets.com/reports/c31131 ) has announced the addition of Chinese Markets for Automotive Plastics to their offering.

China's demand for automotive plastics has grown at a fast pace in the past decade. In the next five years, both production and demand will continue to grow. This new study examines China's economic trends, investment environment, industry developments, supply and demand, industry capacity, industry structure, marketing channels and major industry participants. Historical data (1994, 1999 and 2004) and long-term forecasts through 2009 and 2014 are presented. Major producers in China are profiled.

This report examines China's macroeconomic trends, investment environment, automotive plastics industry structure and capacity, production and demand, enduse market consumption trends, distribution channels and principal industry participants. Long-term forecast for major automotive coating production and demand are included. Key producers are profiled. Top Chinese automotive plastics producers are listed in the producer directory section.

Most primary and secondary research was done in China in order to access up-to-date government regulations, market information and industry data. Data was collected from the Chinese government publications, Chinese language newspapers and magazines, Chinese chemical industry associations including Chinese automotive plastics industry associations, local governments' chemical industry bureaus, automotive plastics industry publications, and our in-house databases. Interviews were conducted with Chinese industry experts, university professors, and automotive plastics producers in China.

Historical data includes 1994, 1999 and 2004. Long-term development trends are projected to the years 2009 and 2014. Economic models and quantitative methods are applied in this report to project market demand and industry trends. Metric system is used and values are presented in either Yuan (RMB, current price) and/or US dollars. Exchange rate for 2004 is based on the annual average rate (8.3 Yuan per US dollar). The word "demand" is used interchangeably with "consumption".

Topics Covered
I. INTRODUCTION
II. BUSINESS ENVIRONMENT
III. AUTOMOTIVE PLASTICS INDUSTRY ASSESSMENTS
IV. AUTOMOTIVE PLASTICS PRODUCTION AND DEMAND
V. AUTOMOTIVE PLASTICS CONSUMPTION BY MARKET
VI. MARKETING STRATEGIES
VII. AUTOMOTIVE PLASTICS PRODUCER DIRECTORY

Summary

China has experienced over two decades of high economic growth, which has been stimulated by the consecutive increases of industrial output, consumer consumption and capital investment. China's GDP has been growing at 9.8% per annum. National industry output has been advancing at 15% annually and will continue to sustain a strong growth into the next decade. The fast-growing middle class is creating an enormous consumer society. As the fastest-growing economy in the world, the emerging market has attracted the attention of investors and corporations around the world for the last two decades.

To deepen the reform of state-owned enterprises is a long-term task and needs great efforts. The reform of state-owned economy has witnessed rapid changes in both economic and social aspects. The introduction of foreign advanced technology and capitals will continue to be favored by the Chinese government and business community. New ways will be adopted to utilize foreign investment, including mergers, acquisition, and investment funds and securities investment. China will continue to improve its investment environment in the areas of legal system, intellectual property protection, foreign trade and investment regulation, infrastructure and financial system. China is the second largest foreign investment recipient after the United States in the world today. Given its vast market, the country provides tremendous opportunities for investment and trade both for the present and future.

China's nearly two-decade high economic growth and rapid automobiles industry development have excited the rapidly rising consumption of automotive plastics. Since 1990, the country's automotive plastics consumption has grown 24.7% annually. It is forecast that China's demand for automotive plastics will increase by 15.4% annually to 1.414 million metric tons by the year 2009. The strong growth is a result of the rapid development of China's automobiles industry. Automotive plastics consumption has been growing by 27.8% each year from 1994 to 2004 due to the fleetly boom of China's automotive plastics in the early 1990s. Because of capacity expansions in recent years, China's domestic production of automotive plastics has been advancing rapidly. Automotive plastics output reached 219,300 metric tons in 2004. It is forecast that China's automotive plastics output will increase to 504,430 metric tons by the year 2009, growing at 18.1% per annum. China will continue to remain a large importer of automotive plastics to meet the growing domestic demand. In 2004, China imported 482,400 metric tons of automotive plastics. It is forecast that China's automotive plastics imports will increase to 951,260 metric tons by the year 2009.

Since 1950s, China has completed over 1,100 automotive plastics manufacturing facilities. The majority of these technologies and equipment were imported. Currently, the country is gearing up to add more new facilities to satisfy the surging domestic demand. More automotive plastics facilities are being constructed or scheduled to be built at the beginning of the century. In the past ten years, China's automotive plastics industry has been growing at 27.8% per annum. The Chinese government has given a high priority to the increase of automotive plastics production. As the Chinese automobiles markets continue to expand, demand for new types of automotive plastics products has been rising. In China, automotive plastics are primarily used for bumper, fuel tank, dashboard, engine parts and other parts.

The plastics used in automobiles include polyethylene, polyvinyl chloride, polypropylene, polystyrene, phenolic resins, polyurethane, acrylics, unsaturated polyester, acrylonitrile-butadiene-styrene, engineered plastics, etc. In China, there are more than 1,100 state-owned, local government owned, private and foreign-funded automotive plastics producers by 2004. The total capacity increases to 261,070 metric tons in 2004, among 6,310 metric tons of polyethylene 11,190 metric tons of polyvinyl chloride, 60,170 metric tons of polypropylene, 3,570 metric tons of polystyrene, 4,760 metric tons of phenolic resins, 76,190 metric tons of polyurethane, 5,590 metric tons of acrylics, 7,140 metric tons of unsaturated polyester, 34,520 metric tons of acrylonitrile-butadiene-styrene, 14,290 metric tons of engineered plastics, and 36,430 metric tons of other automotive plastics.

The majority of automotive plastics producers are small companies that manufacture several thousands metric tons of automotive plastics products per annum. Currently, the Chinese government is restructuring the industry. Many companies have formed alliances or merged into large chemical groups. Enterprise reform is reshaping the automotive plastics industry.

For more information visit http://www.researchandmarkets.com/reports/c31131