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Glass companies need innovation out of the excess capacity dilemma
“Excess capacity” can be said of today’s building materials industry, there is a common phenomenon. The most obvious one, whether the performance of the steel industry, or the relatively slow development of the glass industry. For the “excess capacity”, we generally believed that productivity is
Production capacity for short, that is, lowest cost production and long-run equilibrium in the difference between the actual output. For what is excess, and scholars have different views, some people think that the excess shall be oversupply. Also suggested that supply exceeds demand, there are two states, the first is slightly greater than supply, demand, and the second is the total supply does not normally exceed the state of aggregate demand. “Slightly exceed” refers to not only meet the effective demand, but also including the necessary inventory and the need to prevent unexpected accidents. This surplus is not in itself harmful effects, but the interest. The latter state is the excess of state, including two aspects: one is the total supply for a certain time, the relative lack of aggregate demand, on the other hand is the total demand for a certain period of aggregate supply relative surplus.
Clearly, building material industry overcapacity situation in the latter, they will not mention the steel industry overcapacity serious, imminent restructuring. Overcapacity in the glass industry is also very serious. 2008 total production capacity in China reached 650 million heavy plate glass containers, flat glass output of 574 million weight cases, accounting for 50% of the world’s total output of glass, has a serious surplus capacity. Currently, the Ministry of Industry and Information published on inhibition of excess capacity and duplication, and guide the healthy development of flat glass industry, asking the department in charge of suppression around the flat glass industry excess capacity and duplication. Even, the NDRC issued a notice requirement, by the end of September has not started the project before the full stop the clean-up, re-examine the decision only after retirement, and clean-up work to be completed before the end of this year.
The face of overcapacity glass companies will go from here? In such a torrent of competition, how to make their products by consumers of all ages. Make their products can be construction concern.
Enterprise restructuring is a way out
Hony Capital will jointly joint venture to the northern Qinhuangdao Yaohua Glass Group and Group Limited (hereinafter referred to as the North Group) replenishment of the 100 million U.S. dollars, to participate in Yaohua Group’s restructuring, and to promote the restructuring of the two.
Yaohua Group was established in 1922, known as “the cradle of China’s Glass Industry”, is a major pillar of enterprise groups in Hebei Province. . “Wah” brand float glass by the state as “Chinese Famous Brand” and “China Famous Brand.” While the northern group is in the Float Glass Group, founded by restructuring on the basis of a class of large-scale state-owned enterprise, founded in 1976, the North Group and Qinhuangdao Yaohua SAC Management Group are both state-owned enterprises. However, in recent years, Yew Wah Group of successive losses, production and management trouble. Wah after the reorganization of the glass industry will highlight the leading position. With strong brands dominate the market.
Technological innovation, leading the company out of excess capacity dilemma
Yaohua group companies in addition to this, in the case of overcapacity, some brands ongoing technological innovation, hope the new technology to improve the performance of glass products, through excellent product quality to gain market share.
Recently, the orientation of glass produced by the Group LOW? E glass, both short Low-E glass is coated on the glass surface, multi-layer composed of metal or other compounds, coating products, because surface coating layer has a very low rate of radiation name. Low-E glass has a high visible light transmittance and can be more than 80% of the far-infrared radiation reflected back with good barrier effect of external radiation, with remarkable energy savings, the state actively to promote the new products, market prospects. With the first products off the assembly line, orientation has become the first two-line LOW? E coated float glass production line of private enterprises. “The total investment is 780 million yuan to introduce the U.S. advanced glass coating technology, the annual output of 720 million boxes, which LOW? E glass 2 million weight cases.” Zhao Shijun, general manager of introduction. This glass is three times the price of ordinary glass, but the market is still very popular.
Improve the industry chain to enhance the brand position
Three new material the company has formed an annual output of 300,000 tons upstream of high quality silicon mine; River has a number of glass deep processing production line to process 3 million square meters of glass products, a complete industrial chain. Dangyang Gap through the acquisition of special glass optical means stock limited liability company, the ultimate holders of special glass optical Gap 96.67% stake in the equity acquisition, the company will already have the original 400t / d, 500t / d Float glass production line basis, the increase of a 600t / d of production lines, the company’s main business will further expand the scale and further improve the middle chain. With the Copenhagen Climate Conference approaches, the relevant energy-saving, low-carbon economy is expected to once again become the market hot plate. The stock hit a new high of contrarian increased resistance to further lift, investors continue to see high.
Today, the national advocate of environmental protection, low-carbon economy, the time has come, whether glass or other building materials industries, should strengthen energy-saving low-power product development and production. In particular the convening of the Copenhagen climate conference, but also to the building materials industry, pointed out the way out. Excess capacity, we should be even more energy production.
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