Analysis on characteristics of China glass industry in recent years

China glass industry is undergoing a new industry circle and structural adjustment period as well as industry restructuring, which is mainly reflected in the following aspects:

1. High growth of capacity. From 2004 to 2006, about 60 float glass lines were built, with an increased new productive capacity of 163 million weight cases; in 2007, the overall glass output was more than 500 million weight cases in China.

2. Companies active in acquisitions and restructuring. Central enterprises and the world’s glass giants get involved in China glass industry, speeding up the industry’s restructuring and bringing new and huge changes for the development of China glass industry.

3. Positive role of the readjustment of China glass product structure. A large number of investors begin to invest in new products, such as Low-e glass, Sun-e glass, vacuum coated glass, solar sealed glass, self-cleaning glass and fire-rated glass.

4. More international cooperation. More and more companies seek for cooperation with advanced foreign companies, which to some extent will improve China domestic glass production, technology, equipment or even the quality of products.

All indicates that the competitive environment of glass industry is upgrading. So, only keeping on innovating technology and management and making clear the stand, can a company wins the competition.

Relevant laws and regulations and industrial policies have also been issued to impact the domestic glass industry. According to the “Five-year Development Program”, the next five years are an important period for the rapid development of industrialization, urbanization and building of a new socialist countryside, as well as a period full of opportunities for the development of glass industry. Pillar industries for China sustained development, such as construction industry, transportation industry and new emerging industries, the extensive use of energy-saving glass and the improving rules and regulations will drive the development of glass industry.

As for the market supply and demand, the inferior flat glass accounts for a large proportion while processed glass and high-value-added glass account for a few. For its low international competitiveness, it will be replaced by high-quality float glass. Meanwhile, China has higher growth rate of glass market capacity than the average global level. For the following factors, the total demand for glass will be still on the increase.

1. Optimistic prospects of the macro-economic environment, which provides much room for the growth of China glass market.

2. Widely spread and used energy-saving buildings. With energy-saving goals put forth by the state and the active promotion of local governments, a large amount hollow glass and Low-e glass are adopted in buildings, which doubly increases the market demand for glass.

3. Rapid development of automotive industry and information industry provide a broad space for developing high-grade float glass and ultra-thin float glass.

From the analysis above, the situation is still grim for the glass industry; on the other hand with economic development and technological progress, both China domestic and foreign market have much room for growth and glass companies will face more business opportunities.