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Glass Industry: Serious Imbalanced Industrial Chain

Post Time:Nov 29,2012Classify:Industry NewsView:318

(China Glass Network) Glass deep-processing factory belongs to the mind-stream of the whole glass industry. The upstream is glass sheet manufacturers, and the down-stream is glass curtain wall enterprises, construction enterprises and home appliance enterprises. “Under this background, our profit has reduced year by year. The main reason is the bad economic environment.” Said Song Jianping, the marketing director of Haojing Glass

Apart from the depression economy, the processing cost climbs too. Glass sheet, aluminum strips and glue prices keeps unstable. The labor cost is also increasing. Ten years ago, the average labor cost is less than 1000 yuan. Now, it climbs to 3000 to 4000 yuan. And the electricity and fuel cost is only rising.

The Haojing Glass is of a high competitiveness in glass industry. It has four production lines, flat glass production line, ultra-white glass production line and two stained glass production line. And it also has some advanced machines. But Haojing still has a high level stock. The storage is full of glass and some even has to put in the open.

“For the manufacturers, the cost is the core competitiveness. At present, the raw material and fuel takes 80 percent of the total cost. But in recent years, the price of natural gas and soda ash rises considerably. It is a great pressure for the manufacturers. The profit is accordingly reduces.” said an owner of glass factory.

The statistics shows that the price of soda ash and heavy oil has risen considerably in 2011. The price of soda ash on 2012 is 25 percent more than the 2011. And the heavy oil even rises 40 percent than then year of 2011. The fuel cost proportion climbs from 15 percent on 1990s to the 25 percent on 2012. A  lot of manufacturers can’t bear this burden.

Source: GlassinchinaAuthor: shangyi

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