As the world’s largest producer and consumer of plastic pipe, China’s output of plastic pipe reached 10 million tons in 2011 (a year-on-year increase of 19.0%), and about 11.67 million tons in 2012.
In today’s China plastic pipe industry, PVC pipe still holds a dominant position, with output accounting for approximately 55% of the total. However, with the increasingly serious environmental pollution as well as support policies, China’s PE and PP pipe market share will usher in fast growth.
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There are more than 3,000 enterprises engaged in the production and operation of plastic pipes in China, but only a few with capacity up to the 10,000-ton level. In 2012, China Liansu Group Holdings Limited, Cangzhou Mingzhu Plastic Co., Ltd., Fujian Newchoice Pipe Technology Co., Ltd., Goody Technology Co.,Ltd and other listed companies occupied leading positions in annual production capacity, of which, China Liansu, by virtue of the 1.75 million tons/a scale, became one of the country’s largest plastic pipe enterprises. Stimulated by the accelerated process of urbanization and other favorable factors, major domestic playersare actively seeking financing for expansion.
As a leader in domestic PE gas and water supply pipe industry, Cangzhou Mingzhu Plastic realized PE pipe capacity of 62,000 tons as of the end of 2012, of which, 47,000 tons was located in the Cangzhou headquarter, 15,000 tons in the Wuhu subsidiary. In 2011, it raised funds of RMB152 million by means of non-public issuance for the construction of the 19,800-ton PE Pipe & Fittings Project expected to be put into production in 2013.
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Fujian Newchoice Pipe Technology is one of China’s core enterprises of HDPE winding intensifier tubes and auxiliary fittings. In 2011, it added six new HDPE winding intensifier tube production lines (new capacity of 14,400 tons) with IPO funds, all of which are to be put into production in early 2013. So far, the company has possessed 11 HDPE winding intensifier tube production lines in three production bases in Quanzhou (headquarter), Tianjin and Wuhan, with aggregate productivity of 25,500 tons/a. In addition, it plans to build two new production bases (each with two 2,400-ton production lines ) which are expected to go into operation by the end of 2014.
Being one of influential manufacturers of plastic pipes in China, Goody Technology has a total of eight production bases, with products covering PVC, PE and PP series. In August 2012, the company’s Hubei Goody 43,000 tons/a Plastic Pipeline Project (already put into production at end-2012) and Chongqing Goody 26,500 tons/a Plastic Pipeline Project with IPO funds began construction, of which, the former is expected to be completed and commissioned in the second half of 2013, when the company’s plastic pipe business might realize a total annual capacity of 232,000 tons.
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