China's modified plastics capacity market may reach more than one trillion yuan

Just a whole new generation of BMW 5 Series will soon be available worldwide on the occasion, China Guangdong Nuclear Technology (000881.SZ) China Guangdong Nuclear Chun Seoul, a subsidiary of New Materials Co., Ltd. (hereinafter "CGNPC Chun Seoul" under) announced that the company's mineral-reinforced PP bumper material It has been approved by BMW as the raw material for the bumper of the new 5-series model. The new generation BMW 5 Series will be available worldwide on June 18. Seoul, deputy general manager of Guangdong Nuclear Jun Zhang Lei said the next year, the China Guangdong Nuclear Chun Seoul expected to provide more than 200,000 BMW 5 Series vehicles and 2 lines to provide raw materials. China Guangdong Nuclear Chun Seoul had already BMW 3 Series, X1 has provided its own production of "high-performance modified engineering plastics." CGN Jungle also said that the localization of the other two international auto giants Audi and Mercedes-Benz's bumper is also in progress.

At present, China modified plastics consumption is growing rapidly, modified plastics there is still a gap compared with developed countries in the proportion of common plastics field. Meanwhile, China modified plastics existing capacity can not fully meet the domestic market demand, future domestic modified plastics industry, there are still large room for development.

Terascale market

In April this year, the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Science and Technology and other three ministries jointly issued the "Medium and Long-Term Development Plan for the Automotive Industry", said that the "lightweight" of automobiles can achieve energy saving and emission reduction, while bringing power, vehicle control stability and NVH. Performance improvement (such as noise, vibration, and acoustic vibration roughness) is an inevitable trend and an important direction for the development of the automotive industry, and the development of high-performance plastic parts, composite materials and other advanced automotive materials has become an important part of it.

Modified plastic refers to the addition of suitable modifiers to the matrix of general-purpose plastics and engineering plastics. It is modified by filling, blending and strengthening to improve the flame retardancy, impact resistance, strength and stretchability of plastics. , toughness, etc. Modified plastics are widely used, mainly in the automotive industry, home appliance industry, electrical and electronic industry, medical industry, etc.

The development of China's modified plastics began in the 1990s and has a history of less than 30 years. Along with the rapid development of the domestic economy and the continuous advancement of “plastic-based steel” and “plastic-made wood”, the modified plastics have also achieved rapid development. The modified equipment and modification technology are constantly maturing, and the modified plastics industry The system has also gradually improved and has become an important part of the national plastics industry. In the early stage of industry development, domestic modified plastics enterprises mainly use their own labor cost advantages to seize the middle and low-end products market. However, after nearly 20 years of rapid development, the domestic modified plastics industry has gradually grown up with a number of well-known enterprises with independent research and development capabilities, and the innovation ability of new products and the stability of mass production have been greatly improved, partially modified. Plastics have reached the international advanced level in terms of formula and process.

According to the data, since October 2014, CGN Nuclear has broken the monopoly of foreign companies on supporting BMW car bumper materials, providing materials for BMW for four consecutive years and increasing supply, which has released the international auto giants to “reduce production costs and Proactive signals of procurement costs, improving supply chain efficiency, and localization of raw materials for parts and components.

Industry experts have previously estimated that under the dual drive of national policy support and rapid growth in market demand, China's modified plastics will have a capacity market of more than one trillion yuan in the future. With the development of lightweight vehicles, the future automotive industry will change. The demand for plastics applications will continue to rise. Take Zhongguang Nuclear Juner as an example. In the past five years, the company's output has more than doubled, and the current annual production capacity has reached 120,000 tons. Zhongguang Nuclear Juner said that if you count the 400 million yuan project invested in Wenzhou in the second half of the year, the annual production capacity will reach 200,000 tons.

'Automobile lightweighting' will become the next hot spot for the automotive industry, and China's local modified materials companies have the opportunity to compete with international first-class brands. Although the global high-end automotive raw materials market has a large import substitution space, how to improve production technology capability and quality stability, avoid homogenization competition, aggregate limited resources, enable materials companies and downstream customers to develop simultaneously, and quickly respond to end customers. Demands, opening up the various occlusion links in the industrial chain, and coordinated development are the challenges and opportunities for local enterprises such as China Guangdong Nuclear Power Group.

"Made in China" will be more and more

Zhang Lei said that high-end auto parts materials that have been monopolized by foreign manufacturers will appear more and more "made in China." He believes that the CGN Nuclear Juner's supply of bumper raw materials for BMW can be said to be a microcosm. Automobile bumpers are important body components that absorb the impact of external shocks. High-end cars have high requirements on the strength, toughness and sprayability of bumper raw materials. Most of them use injection molding of modified plastics.

For a long time, the bumpers of high-end cars such as BMW, Mercedes-Benz and Audi have imported modified materials. Among them, BMW car bumper has a complex design shape, thin wall, light weight and higher material requirements. It is mainly purchased from international modified plastic giants such as Borealis Chemical and Basel.

At present, CGN Junhao has 10 materials in the BMW Global Procurement Accreditation Catalogue, 4 materials passed the test, and 2 materials entered the purchase list. CGNPC has reached long-term strategic partnerships with BMW, Audi, Volkswagen, GAC and BAIC, with more than 500 core customers. In addition to bumpers, many automotive parts such as headlights, engine covers, sun visors, instrument panels, steering wheels, and vehicle door are all injection molded with modified plastics, and the application market is broad.

At present, there are more than 3,000 modified plastics production enterprises in China, most of which have an annual output of less than 3,000 tons and less than 10,000 tons. Most of them are generally small in scale, lacking in production technology capabilities and quality assurance capabilities, and it is difficult to meet the requirements of high-end automobiles. This is the main reason for the low level of localization of high-grade automotive special plastics.

With the extension, improvement and synergy of the high-end industrial chain of China-Guangdong nuclear technology modified materials, Zhongguang Nuclear Juner has been at the forefront of the country in the field of modified engineering plastics, becoming the leading modified engineering plastics manufacturer in the country, especially in the field of automotive bumper raw materials. It is one of the few companies in China that can compete with European and American power manufacturers.