What opportunities will China's environmental protection measures bring to the coatings industry?2017.10.31 10:00
According to Bloomberg News website reported on June 27th, China manufacturers currently produce a container for manufactured goods to all around the world and transport of various commodities on ships of 90%, which is the development of the global economy are pulling. The companies are rushing to spray containers with water - based coatings before China starts levying environmental taxes in January 2018. Compared with oil-based coatings, these coatings release less toxic gas.
Reported that this is a noble move, but it is also an unexpected blow to the shipping industry move. The world's second largest container manufacturer - container Singamas Co. CEO Zhang Songsheng said, with the manufacturers to use the new paint and replace the mechanical equipment of factory, about 70% China container production capacity has been shut down, which leads to the container prices and last year's lows than jumped up to 69%.
Hana financial investment analyst Pu Wuxian (sound) said: "in the shipping industry just full of vitality on the occasion, this is not something to shipping companies, but they are really aware of the importance of the environment. They will have to adapt to these changes, even if that means paying higher costs."
Many years ago, scientists have identified the gas oil base paints used in ships and containers out may lead to greenhouse gas emissions and harm the health of workers, the shipbuilding enterprises in 2008 and to the use of environmentally friendly water-based paints. Now, container manufacturers are doing their part to help limit greenhouse gas emissions.
Reported that the industry switched to water-based coatings in July 2016 in the southern province of Guangdong began, when the China Container Industry Association implemented a plan to reduce emissions of volatile organic compounds agreement. The agreement of the parties are China international shipping container (Group) Limited by Share Ltd, Singamas Enterprise Co., Ltd. Xinhuachang group and China Shipping Group Investment Co. Ltd., covering 46 manufacturers of the four group under the.
For paint manufacturers, this change is an opportunity. According to Singamas company estimates that use water-based paint container currently accounts for only about 3.5% of the total global container.
Singamas company has a total of six factories in the China, at present it has suspended several branch operations, to the transformation of the production line. Zhang Songsheng said, the biggest rival - Chinese Singamas international shipping container (Group) in the same Limited by Share Ltd under the agreement to adjust production capacity.
Adjusting the production line is not the only cause of paint shortages. Water paint takes time to dry. Typically, it takes about 20 hours of drying for a 20 foot container, and only 4 hours for a conventional coating. The company said the signing of waterborne coatings, higher prices, lower productivity, higher labor costs.
Singamas company said, using water-based paint containers than the use of solvent based paint container cost 180 to 200 dollars, all enterprises have invested a lot of money to transform the production line. The company said it received $2200 in 20 foot container orders last month, compared with a low of about $1300 in September last year.
In the New Delhi Office of financial research services analyst Nails Tiwari Drewry said: "(price) rose sharply in water-based coating can be attributed to the system all container manufacturers have to switch to more environmentally friendly, more expensive."
Higher costs are likely to make the container shipping industry more vulnerable, and the industry is beginning to see signs of recovery and Global trade after the collapse last year, the report said. Since the financial crisis in 2008, the shipping industry has been bogged down in overcapacity and freight discounts. Since then, the restructuring of major routes has helped to stabilise the freight rate.
"The increase in the cost base of the industry would hurt more fragile container lines than it used to be, and perhaps further consolidation in the industry," said Shen Siwen, a partner at McKinsey & Co. in Shanghai. In the longer term, the cost of the increase may be passed on to the customer."