New Opportunities in Developing Engineering Plastics

By Yang Weicai   
Owing to their excellent mechanical property, electric behavior,
chemical resistance, heat resistance, abrasion resistance, size
stability, weather resistance, lighter weight than metal
materials and small energy consumption in molding, engineering
plastics are extensively used in the
sectors-electronic/electric, automobile, construction and
office equipment.

Consumption increased rapidly during 2001-2005

China's consumption of engineering plastics increased at an
average annual growth of 26.2% during 2001-2005. The supply of
raw material resins for making engineering plastics is in
serious short of supply. Local supply can satisfy less than 20%
of the domestic need, with great quantities to be imported from
abroad.

    1. Features on the development of engineering plastics
sector

(1) Supply deficit of raw materials
The resins as raw materials of engineering plastics are in
serious short of supply, and the great quantity has to be
imported from abroad each year.
  According to the statistics, China's total imported amount of
five general-purpose engineering plastics (PA (polyamide), PC
(polycarbonate), POM (polyoxymethylene), PBT (polybutylene
terephthalate) and MPPO (modified polyphenylene oxide))
increased from 544 thousand tons in 2001 to 1.221 million tons
in 2005 with an average annual growth of 22.4% during 2001-2005.
Since 1997, China has become the largest exporter of engineering
plastics worldwide, and its imported amount accounted for over
30% of the world total.

(2) Breakthrough has been achieved in the research and
development of special engineering plastics
Jilin University has developed PEEK (polyether ether ketone)
synthesis process with intellectual property right. The process
was regarded to be a commercialization demonstration project of
the state in 2001 and a 500 t/a production unit has already been
constructed.
   Sichuan Deyang Science & Technology Company Ltd. already
completed a PPS (polyphenylene sulfide) unit, which broke down
the over rely on imports.
   The production capacity of PI (polyimide) in Shanghai
Synthetic Resin Research Institute reaches 1.7 thousand t/a, and
the insulted film and copper-clad foil produced have been for
export.

(3) Fiercer competition
Attracted by the huge demand in China in recent years,
trans-nationals such as Bayer, Teijin, DSM, have strengthened
local production and expanded production scale in China. The
engineering plastics sector in China will face with fierce
internationalized competition. To cope with such a situation,
domestic producers have to raise their technical level, enhance
service consciousness and marketing ability, increase R&D input
and avoid great waste caused by low-level redundant construction
and low-price unhealthy competition.

    2. Problems in the development of engineering plastics
sector

    (1) Insufficient investment on R/D.
    (2) No fundamental solution to the industrialization of
research achievements has been achieved in China.
    (3) Small scale of existing production units, outdated
technology, few product varieties and poor product quality.

Engineering plastics sector will develop rapidly during
2006-2010

The average annual growth of the GDP in China is expected to be
7%-9% during 2006-2010 and it will reach more than 12% in the
petroleum and chemical industry. Telecommunication,
automobiles, construction materials, office facilities and
households will remain to be the driving force for the rapid
development of engineering plastics. Market projection shows
that the average annual growth of the consumption will be around
18%.
    The demand for special engineering plastics will be nearly
30 thousand tons by the end of 2010, and the demand for ABS
(acrylonitrile-butadiene-styrene) will be around 5 million tons
with an average annual growth of around 10% during 2006-2010.
Huge demand will provide broad development prospect for
engineering plastics manufacturers.
   During the period from 2006 to 2010 China will still regard
the "the production of composite materials, functional polymers,
engineering plastics and low-cost new plastic alloys" as the
target of industrial distribution readjustment encouraged by
the state. Engineering plastics therefore will become a new
economic growth point in petrochemical industry.

Table 1 Consumption of Engineering
      Plastics in China in Recent years
           (thousand tons)
Year     PA    PC    POM     PBT    MPPO    Total
2001    120    213    107     44    15      499
2002    138    360    130     56    18      702
2003    161    484    158     73    24      900
2004    192    624    187     94    33    1 130
2005    217    700    192    110    40    1 259
Source: CNCIC

Table 2 Projection to the Demand for
Engineering Plastics in China  
             (thousand tons)
Year    PA      PC    POM    PBT    MPPO    Total
2006    260      823    230    131    46    1 490
2007    312      945    268    160    55    1 740
2008    370    1 140    310    189    63    2 072
2009    436    1 320    350    220    73    2 399
2010    510    1 600    400    250    84    2 844
Source: CNCIC