The BPF at Chinaplas 2008

The BPF has long recognised China as a market, not only for exports but for business collaboration.  The BPF first attended a Chinese plastics show in 1982 and since then has organised numerous British Group participations in the market.  In 2006 the BPF signed a historic Technical Co-Operation Agreement with the Chinese Plastics Processing Industry Association and has built great links with this organisation who represent over 3000 plastics companies in China from all facets of the industry.

The BPF has just returned from the 2008 edition of Chinaplas (17-20 April, International Expo Centre, Shanghai) where it had organised a British Pavilion made up of 10 companies and also staged a Trade mission for a further 15 companies in collaboration with Rapra Limited.  The growth of the Chinaplas show is massive with this years show in Shanghai attracting 10,000 more visitors than the previous edition, with 72,161 coming to the trade halls at the International Expo Centre in Pudong.   This was considerably more than the organizers themselves even predicted, having hoped for around 63,000 visitors for the show.  On top of the huge numbers of Chinese visitors, 11,760 individuals came to the show from outside of China with large numbers from India, South East Asia, Korea and the Middle East (particular Iran).  The show itself consisted of 11 permanent and 3 temporary halls, all of which were sold out, this constituted a 40% increase in exhibition area from the last time the show took place in Shanghai in 2006.  This compares to Chinaplas 2004 when the show took up just 4 halls at the same exhibition centre.

Year    Venue            Visitors
2001   Guangzhou      31,000
2002   Shanghai         55,000
2003   Beijing             20,000
2004   Shanghai         57,751
2005   Guangzhou      52,009
2006   Shanghai         57,812
2007   Guangzhou      61,621
2008   Shanghai         72,161

The growth of the show has been clearly recognised by Messe Düsseldorf, the organisers of the K show.  At a press conference on Chinaplas held during ‘K’ the organisers stated that they envisage the day when the show in Düsseldorf is overtaken in size by the Chinese show, indeed Messe Düsseldorf now own a 50% stake in the Pudong showhalls.

Chris Francis, Managing Director of Meech commented ‘we are very pleased with the position of the BPF Group stand and ours in particularly, we were also extremely satisfied with the number of enquiries which approached 400 by the end of the show, about 90% of which were from China.  We have been doing the show since 1986 and it goes grows strength to strength each year, this was clearly the biggest yet!’.

Chinese Plastics Market

China is now in a key period of its 11th five year plan and continues to grow from strength to strength.  In  the first half of 2007, the gross output of plastics products in china reached RMB364.5bn (approx £24bn) which constituted an increase of 27.3% on the same period the previous year.  In order to keep up with this demand there is a massive need for quality overseas machinery and raw materials.  At the current rate the local market can only supply 50% of the raw materials consumed in China, even as more capacity comes online the industry growth means that the domestic market is unlikely to meet this demand anytime soon. It is estimated that by 2010 China will be producing 35 million tonnes of raw material, with this set to increase to 50 million tonnes by 2010.

As the Chinese population becomes more affluent the consumption of polymer per head has increased dramatically, from 15kg per head in 2000 to 31kg per head in 2006 (source: EUROMAP World Market Directory).

Official statistics from the Chinese Plastics Processing Industry report 14,952 large-scale plastic processors accounting for a total production value of RMB801.816 billion in 2007
Up 27.06% on 2006 figures contributing some 10.54% of China’s GDP with an output of 33.023 million tons in 2007 (a growth of 14.48% on the previous year).  Predictions for 2008 are suitably grand with steady growth anticipated and the 2008 Beijing Olympics stimulating even more consumption.  The demand for plastics machinery in China is very high with increasing need for high technology and high quality machinery.  In 2001 73,000 plastics machines were sold in China, in 2006 the number had more than doubled to 149,000.

Breakdown of Plastics Product Output by Province in China (2007) – Source: CPPIA
Zhejiang 27%
Guangdong 27%
Jiansgu 12%
Shandong 11%
Liaoning 6%
Hebei 5%
Henan 4%
Anhui 4%
Fujian 4%

As can be seen from the table above, the majority of plastics companies in China are based in the Southeast coastal provinces, with Gunagdong, Zhejiang, Jiangsu and Shandong accounting for 65.5% of Chinas plastics production (21634kt).

The recycling of plastics materials in China is become increasingly one of the key issues for the sector.  Partly due to the increasing cost of raw material companies are looking to use recycled materials in their production and partly due to the inability of the domestic market to produce enough virgin material.  Currently around 20% of total consumption for engineering plastics is made up of recyclate.

Some of the Chinese industrialists met by the BPF expressed frustration regarding a ban on offering free plastics bags will come into force in June and the production of ‘ultra thin’ bags will also be banned.  A further recently announced ban on the importation of post-consumer waste will add to the difficulties of local recyclers.  The recycling industry is of course an important component of the Chinese plastics sector and is preparing for a large exhibition, the China International Resource Recycling Industry Exhibition organised by CBI China and which will take place between September 9th-11th 2008 in Qingdao.

British Participation at Chinaplas

One of the biggest successes of the mission was achieved during the Group Reception, where guests included Mr Douglas Barnes, First Secretary/Head of China Transport and Advance Engineering Team from the British Embassy in Beijing and Mr Liao Zhengpin, President of China Plastics Processing Industry Association (CPPIA) along with 80 British and Chinese attendees.   Mr Douglas Barnes gave a speech highlighting the help available for British supporters, significantly he also said that he was determined that the Plastics sector should get more support for exporting.  ‘We should not focus exclusively on aerospace and pharmaceuticals’ he said.

Mr Liao Zhengpin was very pleased at the high level of exhibitors and visitors to the Chinaplas show and particularly welcomed the British Pavilion and the British Mission, administered by the BPF with the support of Rapra Limited.  He referred warmly to the ten years of co-operation and friendship between the BPF and CPPIA and spoke about the importance of the CPPIA visit to Interplas in 2002 , arranged by the BPF and UKTI. The BPF was delighted that in his very busy schedule Mr Liao Zhengpin came with many colleagues to the BPF reception and gave a speech.

Peter Davis, Director of the BPF in his speech said “that in 1982 we recognised the importance of the Chinese Plastics Industry and market and have been taking UK companies to Chinaplas ever since”.   He continued “the BPF was particularly pleased to be at Chinaplas this year, our 75th Anniversary, of the oldest plastics association in the World”.

He said “the UK and China have much in common and we know plastics construction materials feature strongly in the Beijing Olympics and we are ensuring they do in the London 2012 Olympics”.

Peter Davis said “issues for the plastics industry such as REACH and used plastics are common to Europe and China and the BPF and CPPIA need to work together on this”.

Rapra Limited supported the mission as a means of trying to develop enhanced services for its Members, not just providing preferential access to technical and research services, but also by helping their members to reach new and emerging markets.  This is also the start of a new initiative by Rapra Limited to develop and promote a new membership package offering for companies active in China.  Following on from this succesful mission there are now plans for further ventures later this year and into 2009, includi8ng the potential of a Trade Mission to Plastindia 4th-9th February 2009.