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REPORT IDENTIFIES LEADING MASTERBATCH PRODUCERS IN CHINA

AMI, Bristol, 3rd February 2010 – The masterbatch market in China is one of the fastest growing and most dynamic in the world. Its rate of advance has enjoyed strong double-digit growth over recent years and despite the impact of the global recession the market continues to advance at around 8%/year in volume terms. As a result a thriving business has developed to serve China’s plastics processing industry involving a wide variety of companies from those that remain under state control to major international groups. A new report from leading plastics industry consultants AMI, looks in detail at who are the leading players in China and their recent growth and development.

 

AMI estimates there are at least 500 companies producing masterbatch in China. Clearly most are small-scale, locally-based suppliers. Even so, unlike plastics processing the production of masterbatch in China is more concentrated in the hands of the leading players. AMI’s report on the leading fifty companies in China reveals they accounted for approximately 50% of production in 2008.

 

AMI’s research has revealed that in volume terms the largest is Cabot Plastics, which has a long established black masterbatch plant in Hong Kong and is supplying product throughout Asia.  However, black is more of a commodity product and in value terms the leading producer is Ngai Hing Hong, which supplies a full range of colour, black, white and additive varieties. Ngai Hing Hong has a network of plants in China with five factories. Although Ngai Hing Hong is an important supplier of colour masterbatch companies such Yangxi Huaqiang Color Masterbatch Factory, Guandong Charming Company, PolyOne and Clariant are the largest in terms of their production in China. The leading white masterbatch producer is Meilian Chemical based in Guandong which is mainly supplying to the blow moulding industry, while A Schulman is China’s largest producer of additive masterbatch.  It started a 16,000 tonnes/year capacity plant based on a single line in Dongguan in 2005 and has rapidly built up market share producing masterbatch to supply the Chinese film and packaging markets.  

 

Leading masterbatch producers in China 2008

 

Black

White

Colour

Additive

Leading  5 suppliers

Cabot Plastics

Foshan Nanhai Jolink Plasticolor Masterbatch Co.

Ngai Hing Hong

Meilian Chemical

Yangzi Huaqiang Color Masterbatch Factory

Changzhou Hongmei Plastic Masterbatch Co.

Guangzhou Bosi Plastic Pigments

Meilian Chemical

Ngai Hing Hong

Yangzi Huaqiang Color Masterbach Factory

Clariant

Guandong Charming Co.

Guangzhou Eastern Rainbow Masterbatch Factory

PolyOne

Yangzi Huaqiang Color Masterbach Factory

A Schulman Inc.

Changzhou Hongmei Plastic Masterbatch Co.

Gunagdong Hengchang Chemical Co. Ltd.

Meilian Chemical

Ningbo Color Masterbatch Co.

 

While there is a clear trend to make greater use of masterbatch, many Chinese processors continue to use dry blends and pigments in significant quantities, especially in sectors where issues of quality or consistency may not be of a major concern. There are lots of companies supplying these pigment products which the processor then doses directly into the moulding or extrusion equipment. The switch to masterbatch is often hard to achieve in the face of the cost-effectiveness and simplicity of these traditional colouring practices. This method persists in China mainly on grounds of cost and tends to be used in products which are for the local market, rather than those destined for export. Increasingly though as standards, quality and colour matching requirements improve so companies are expected to make greater use of masterbatch.

 

Another feature of the masterbatch industry in China is that most plants, even those belonging to major international groups, are serving relatively local markets. A combination of poor logistics and local regulations result in little long distance masterbatch supply in China. Each province also has its own commercial environment and structure and there does not yet exist a homogenous “Chinese market”. To deal with this many of the leading producers are developing networks of plants in order to serve the total market. The main companies to have gone down this route are Clariant, Ngai Hing Hong and PolyOne.

 

PUBLICATION DETAILS:

FURTHER INFORMATION:

Title:

Corporate performance and ownership among masterbatch producers in China

Name:

Tel:
Fax:

Regine Futter

+44 (0)117 924 9442

+44 (0)117 989 2128

Edition:

2nd

E-mail:

info@amiplastics.com

Date:

2009

 

 

No. of pages:

115

 

 

Format:

A4 paperback

 

 

Price:

€455.00 /£380.00 / $615.00