CHINAPLAS ‘12: Overseas users put off by China masterbatch quality

19 April 2012 16:11  [Source: ICIS news]

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SHANGHAI (ICIS)--Downstream producers outside China are avoiding purchasing masterbatch products that are made in the country because the products lack variety and are of poor quality, a company official said on Thursday.

As a result, around 80% of China’s masterbatch production is being consumed by domestic end-users, said Weibo Hu, an assistant manager at China-based masterbatch producer Changzhou Plastic Modification.

Hu was speaking at the sidelines of Chinaplas, a four-day exhibition in Shanghai, China which ends on 21 April.

Chinese masterbatch producers with a production capacity of over 10,000 tonnes/year account for 8% of all masterbatch producers in the country, Hu said.

Changzhou Plastic Modification has a production capacity of 15,000 tonnes/year.

The remaining 92% of masterbatch producers comprise small- and medium-sized companies which do not have the strong research and development capability, and the advanced equipment, of their overseas counterparts, Hu said.

A lack of industrial standards has resulted in poor-quality products made by these small producers, which dominate China’s masterbatch industry, Hu added.

This, in turn, has weighed significantly on Changzhou Plastic Modification’s sales to overseas buyers, Hu said.

In China, masterbatch is used mainly in the plastics film, household appliances and building material industries.

By: Rain Dong

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