China's Plastics Machinery Industry Continued to Slower Grow in The First Quarter

China's plastics machinery industry continued to grow in the first quarter, but the speed slowed down, according to data released by the China Plastics Machinery Industry Association (CPMIA). The country produced 66, 149 units of plastics machines in the first quarter, up 17 percent from 54, 904 units in the same period a year ago, said Qian Yaoen, executive vice president of CPMIA. Total output value of machines reached 9.75 billion yuan in the first three months, up 24 percent year on year. Sales reached 9.63 billion yuan, a 29 percent increase from a year ago. “The industry has maintained good growth, ” Qian said. However, the first quarter growth rate is significantly lower than that of 2010. China produced 42.1 billion yuan of plastics machinery in 2010, up 63 percent from 2009, while sales reached 40.01 billion yuan, up 60 percent. Qian said the industry faces increasing pressure and challenges due to a series of macroeconomic factors, such as rising costs and the appreciation of yuan. He added that the industry achieved high growth in 2010 partly because market demand, from both domestic and overseas markets, was constrained in 2008 and 2009 during the economic downturn. For the coming few years, Qian said the industry targets an annual growth rate of 12 percent, with annual output value and sales reaching 50 billion yuan by 2015. Source: Plastics News