Comparison of Polyester in China and India

Introduction

Everyone wants to see a comparison between China and India, but why? They do not share eating habits, sports, lifestyle and culture. Not even the same area. The economic and political systems are different. Yes, both have a long history and the roots of the same population base, and thus, produce and polyester textiles. But the similaritiesBetween the end dosuntries.

Polyester in China has significantly to 14 million tonnes per year and will soon reach 18 million tonnes. India has around 2 million tonnes of capacity today and will shortly be increased by 3 million tons. Indian companies are often concerned about what the Chinese are to be done, but the Chinese manufacturer is not Indian.

The success of China polyester industry network is the result of the recent Invement and a significant increase in the capacity of China estáel even after the recent transfer of polyester industry in Taiwan to China.

Chinese Level

The Chinese economy grew rapidly after the implementation of the reform and opening-up policy, twenty years ago. The average growth of GDP continues to grow at a healthy 98% annually. This fortetaux unemployment remains stable and growing China is a good basis for the development of chemical industry in fiBH.

In recentthree years, poliésterChina growth has been fueled by government policy "product of choice," the availability of funds through local banks and power subsidies. Moreover, China is ready to face the challenges of global free CEhange in the WTO.

Textiletion industry in China has a long history and a high level of technology. With its low labor costs for processing and textiles, China has a competitive advantage over many other Läcountries, and is able to intervene in the world.

China is the largest producer and consumer of synthetic fibers, the production and consumption of these products rappresentanorappresentano third quarter and throughout the world. China is now at the forefront in relation to the manufacture of polyesters, polyester production in 2004 to 7.25 million tonnes or 74.6 per cent per year. The industry expects a Polyesterumento year 8.3 percent of domestic consumptionto 15.3 million tonnes this year and 18.3 million tons in 2008.

The major player is of course China. Polyester produzionezione in China by 12 percent market share of £ 19 million in 1990 to 37 percent of the market of 46 million pounds in 2002. The rate (20 + percent annually from 1995 to 2002) can not be maintained, and China is expected to around 36 million pounds in 2010 polyester, 10 percent annual growth in 2002. This forces theRest of the world, to the production of polyester.

It is amazing how the private sector has rapidamentezione and their investment opportunities fonctionnementtion faster than you could think of. An example of a polyester plant in 24 months is a record in 1990. China has set a new record in this court in 14-15 months. Many manufacturers ESISVersuche to their own fiber or wire in the middle of processing and value added. Most manufacturinghe POY in the heart of textures, even some of weaving, dyeing and weaving of installationproches die. Most large companies are the expansiónding exponentially over a short period. Land, energy and infrastructure available and plentiful. The funds were established on the basis of what the Chinese call Fazhi (Regulations) and Guanxii (relations). It is waived duties on imported technology and equipment. Capacity of the West, it is very much higher costs of production, a commment to close and the world saw China as a polyester étenduecapacité in an exceptional course. For some companies, it was a great opportunity, a PTAd MEG, the raw material for polyester.

But what happened in the last 12 months. China has begun before the blackouts, the AutoEnza of raw materials and the tightening of monetary policy. China is now quite fallimenties industrial areas and the strengthening of working capital. It addition, the national shortage of ATP is 450 million tonnes and the shortfall is 2.60 million tons of MEG. Soon, these figures rise to 5.70 million tons of PTA and 2.80 million tonnes in the MEG.

The Indian Scenario

The polyester industry in India was erstenIch 1980, under the 'License Raj' (government license). The license capacity of stabilimentonon was at 15,000 tons per year, the "economic size. Construitesrhum Some Betriebe were at the time, even in some rural areas, in order to tax benefits. In 1990, rapid growth has taken place, with two big players, Reliance Industries Ltd and increase the capacity of Indorama. CHEMTEX - DuPont (now Invista) built the part of the plant and is a leading supplier of polyester in India.

Integrated unit of raw materials and chemical paraxylene. Consequently, the unity of a society (the world), beginning with oiland go to the bottom of the value chain by selling tissues. Indorama and trade in textile products, a new integrated system of polymerization. This has led to two major manufacturers of polyester and a leading producer of terephthalic acid, purificato. Then, trust has acquired the assets and more, these small fibers. Simultaneously, a series of small lots invested in the lines of the POY chips and driven MasChin. Surat chip consumption (the largest of the textile industry in North-West India) is around 300,000 tons.

Earlier this year, stipulates that India is the capacity of 4 million tonnes, with several large investment firms.

The investment, which Llac to a certain extent, but will daux jugadminerais large. E ', that some of the chips for the manufacture of POY CP installed capacity and not on the supply of chips from external sources. Plansne, by 4 million tons were produced, and the textile industry has developed from a fragmented system for large plants. Several companies are improving their facilities and quality of capacity to fulfill the system of free trade in the RahmenWTO.

Even with so little space for polyester, India remains a net exporter of weaving a thread child st. Materials of high quality and reduce costs to the West, it remains an importante source for young Western societies. The environment is very suitable for the construction of new capacity due to the reduction of tariffs, lower interest rates and more than $ 100 billion U.S. dollars reserves. The banks are willing to lend on the basis of project feasibility, market demand and not on Fazhi.

But what happened in October this year. The rise in commodity prices and producer prices POY on a chip. Make intelligent POY wurden not a viable option in such a situation. Capacity and has begun to ensure the majority of small businesses, Opont status 50% les use. If the situation persists, they will be forced to Rückgangten below 30% or even close. In the short term is the integration of new ideas for the cure are not sustainable, and the dependence Indorama plan and more than 780,000 tonnes of new capacity for the operation of polymer in the years 2005 and 2006. Recientesexpansion of polyester in India moves to big players. the offer to the position of the Indian subcontinent. India is under-Pocoprobabile that a serious threat to the dominance of China in the market.

The Indidie on the Japanese Ministry of International Trade and Industry (MITI), a model of industry and government cooperation in fibers, textiles and clothing. According to reports, the program at the level of trade. Apparently there is a competitioncompetition between India yChina in the manufacture of polyester fiber. Countries with less effort poliesterer resembles find these two Goliaths in the market for polyester.

A safe Versorgungvon commodities, a competitive supply chain, recognizing the quality of production processes and the enforcement of intellectual property rights are the main activities of the textile industry in India. These factors, as well as India, in order to competitionsr.

Conclusion

You can guess what succèsEDER polyester, with the growth in China and India. China will continue to have shortages of raw materials in 2006 and India have a surplus of raw materials. But even if the industry in both countries seems to be temporarily blocked, it is certain that we are in the two countries in the years 2005 and 2006, growth in demand for polyester in the world is simply too strong. And more than wahrscheinlI know that more than 75% of new capacity in IndiaPorcellana.

Inclusoaunque cost per hour of work in China should be higher than those of India, Indian exporters argued that the Chinese produttività Labor is 50 percent higher than India, which finally gives the cost per finished part of textile products in China, to 25 percent.

In addition, the land in China is 100 percent owned by the government and companies can rent for 39, 49.59, 69 or 99 years after emplacement. For industrial areas, land be leased may be less than U.S. $ 2 to U.S. $ 16 per square meter - one-off payment for the entire period. Cer company had only from the deck, the willing to pay only nominal fees and tariffs for public service. This makes the cost of hiring pales in comparison to India.

The cost for energy in China is less than 40 percent less cherou India. Well, that such benefits vos general character of business in China.

With a worldwide market of 65 billion pounds in the year 2010 approaches, the market share derund the competition is intense, with oil prices pushed upwards to the Global Fund of fiber and a tightening of the market beginning to end.

Conclusion

You can imagine what will happen to the growth of China and India Polyester. China, the lack dimaterie first in 2006 and India have a surplus of Rohstoffen. But even if the industry in both countries seems to be temporarily blocked, it is certain that we are in the two countries in 2005 and in 2006, growth in demand is polyester in the world is too strong. And more than likely that more than 75% of new capacity is in China or India.

Even if the cost per hour of labor in China is that it is higher than that of India, Indian exporters argued that the labority in China, 50 percent higher than in India, which has finally paid the price for all pieces of textiles products in China, 25 per cent.

In addition, the land in China is 100 percent owned by the government and companies can rent for 39, 49.59, 69 or 99 years depending on location. For industrial, las land be leased may be less than U.S. $ 2 to U.S. $ 16 per square meter - one-off payment for the entire period. Companies only from the deck, the willing to pay only nominal fees and tariffs for public service. This makes the cost of setting tThe pale in comparison to India.

The cost for energy in China is less than 40 percent baratasque India. While the tangible benefits générésJ'aiCina ated companies.

With a worldwide market of 65 billion pounds in the year 2010 approaches, the competition for market share is intense, with oil prices pushed up the Global Fund of fiber and a tightening of the market beginning to end.

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Copyright ฉ 2006

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