China's Plastics Processing Industry Moves to Underdeveloped Areas in Central & West China

Due to rising production costs and shortage of land supply in the coastal region, China’s plastics processing industry is moving to underdeveloped areas in Central and West China, according to Beijing-based China Plastics Processing Industry Association. "Plastic production in China has grown rapidly in the past five years, but the percentage of the volume of products made in the eastern part of China is decreasing, while central and western provinces are picking up, " said Ma Zhanfeng, CPPIA’s secretary in general. Processors in East China produced a total of 33.6 million tons of plastic products in 2010, still representing 57.6 percent of the country’s total output, but the number is 6 percentage points lower than in 2009. Total output in Central China was 9.93 million tons in 2010, representing 17percent of the country’s total output, 2 percentage points higher than in 2009. The output in that region has been increasing by an average of 23.4 percent annually since 2006. The growth is even more significant in West China. The total output was 4.57 million tons in 2010, up 53.3 percent from a year ago, or up 38 percent annually since 2006. West China contributed 8.15 percent of the country’s total output, 1.78 percent higher than 2009. CPPIA also highlighted three northern and western provinces that recorded highest year-on-year growth rates – Shaanxi (241 percent), Heilongjiang (137 percent) and Qinghai (102 percent). China produced about 58.3 million tons of plastic products in 2010, up 21 percent from 2009. The average annual growth rate since 2006 was 20 percent. "These data show that plastic processing industry is doing well, " Ma said, adding that construction and packaging are the two end markets with the fastest growth and biggest growing potential. Guided by the 12th five-year plan, China’s plastic production volume is expected to double to 100 million tons by 2015, with gross value of 2.8 trillion yuan and profits of 140 billion yuan. China exported 14.6 million tons of plastic products with a total value of US$35.9 million in 2010, while imports totaled 1.84 million tons and US$16.2 billion. Source: Plastics News