China's PVC industry calls for wolf culture

After the international PVC industry entered the era of oligopolistic competition, China's chlor-alkali industry is still in the initial expansion phase of the "Chunqiu countries chaos smoke." On the one hand, it is an ambitious and eye-catching peek. On the other hand, they are contented with each other and are always on the path of their own optimism. In the face of aggressive international colleagues, if domestic companies simply enjoy the life of pottery gardens, modify their gentle image, and do not take the initiative to fight in the vast wilderness and sharpen their teeth, how can they resist them? Offensive, even more talk about going out and dancing with wolves.
The beast's buzzing - foreign oligarch competition in PVC industry
Like other resource industries such as minerals, steel, and petrochemical industries, the fierce competitive environment has forced foreign PVC companies to maintain their competitive advantages through strong mergers. At the beginning of the 21st century, the international PVC market has already formed a pattern of oligopolistic competition. U.S. PVC industry through mergers, reorganizations, and other means, in 2003 there were 6 large-scale producers with production capacity exceeding 1 million tons/year; Japanese PVC producers in the face of overcapacity and low device efficiency, after the 20th century 90 After the second large-scale reorganization in the middle of the decade and the beginning of the 21st century, the number of PVC manufacturers was reduced from 13 to 6.
In 2003, global 45.3% of PVC production capacity was controlled by 11 producers such as Shin-Etsu Chemicals and Formosa Plastics. Japan Shin-Etsu Chemical Co., Ltd. is the world's largest PVC manufacturer, with a PVC production capacity of 3.04 million tons, accounting for approximately 8.9% of the world's total production capacity.
After several rounds of life-and-death competition, the international PVC giants who have finally emerged have become fangs and are always looking for prey. With the increasingly oversupply situation in the domestic PVC industry, after the industry enters the era of meager profits, some weak people will emerge in front of them and become a breakthrough point for rapidly entering the domestic market. In fact, like Formosa Plastics and LG have already been deployed in the country, and their efforts are quite large. In just a few years, the scale has exceeded that of some domestic companies that have developed for decades. This can not be seen only as a kind of transfer of investment, but consciously prepared in the era of promoting the PVC industry in China to enter the oversupply earlier and faster. Once some domestic companies have experienced crisis in their operations, they will become the targets of their acquisitions, which will rapidly expand their scale and become a major force in the domestic PVC market.