As the global economy faces mounting downward pressure and factors of uncertainties, the global plastics and rubber industries are at crossroads. The challenges are steering investments to become more conservative as companies adjust their strategies. However, growth outlook remains strong for Asian markets that are not new to economic ups and downs, especially the emerging economies in the region.
CHINAPLAS 2020 takes a “local + regional + global” approach and provides a platform of highly cost-effective and technologically advanced solutions that fit the needs of new markets for both upstream and downstream players.
Asia leads the world in economic vitality
Asia has become the largest cluster of emerging economies in the 21st century. This region boasts more than half of the world’s population, expanding middle class, increasing consumption, and continuous industrial transformation. Asia’s fast rise remains attractive despite economic slowdown. Asia currently represents more than a third of the global economy, and its self-reliance continues to strengthen – trade within Asia far exceeds the total of Asia’s trade with other regions such as North America and Eurozone.
Attracted by the region’s momentum, foreign investment continues to grow in Asia. According to the “Progress of Asian Economic Integration Annual Report 2019” by the BoAo Forum for Asia, investments are retreating from developed economies, especially the capital market in the U.S., and instead going into emerging Asian markets. China’s Ministry of Commerce announced in November 2019 that China is gaining more foreign investment, not less, despite the sluggish global investment scene. During the first three quarters of 2019, China established more than 30,000 new foreign-invested enterprises and utilized 683.2 billion yuan of foreign investment – up 6.5% year over year.
Strong growth in emerging Asian markets
Emerging economies in Asia are continuously introducing new policies to help companies transform and to attract foreign capital. Combining that with their domestic market potential, the manufacturing sector is growing in leaps and bounds. Every year, about 60% of CHINAPLAS overseas visitors come from Asia. And the number of visitors from Southeast Asia has been growing in recent years.
Vietnam is becoming a rising star in the region. According to the nation’s General Statistics Office, its GDP grew by 6.98% YOY in the first nine months of 2019, the highest rate in the past 9 years. Furthermore, the plastics industry there has averaged annual growth rate of 15-20% in the last decade.
Among Vietnam’s advantages is its demographic dividend that features a large pool of low-cost labor, combined with competitive costs of land, energy, and taxes. In addition, its ports and stable currency have supported the growth of its export-oriented manufacturing sector. Many multinational conglomerates have established footprint in Vietnam, including Nike, Adidas, Olympus, Microsoft, Nokia, Canon, LG, Foxconn, Sony, Samsung and more. Chinese plastics machinery manufacturers, such as Haitian, BORCH, Yizumi and JWELL, have also set up production bases, warehouses, subsidiaries, and after-sales service offices there.
Just like Vietnam, other Asian countries such as Thailand, Malaysia, Indonesia and India are also delivering solid growth, each with strong focuses.
Dubbed as the Detroit of Asia, Thailand has become an automotive capital with 2019 production expected to reach 2.15 million vehicles. Thailand is also known as the World Kitchen, and its packaging industry is expected to grow at a CAGR of 4.2% between 2017 and 2020.
Malaysia is also benefiting from rapid growth of the packaging industry, with more than 1,500 plastics processors in the nation. Malaysia projects its food and beverage industry to reach $268 million in revenue in 2019, sustaining an 18% compound annual growth rate; in the meanwhile, the pharmaceutical industry is also giving a boost to the packaging market.
In Indonesia, the food and beverage market grows 3.7% annually and supports the expansion of the plastics industry. Automotive investment has been active in Indonesia as well. Hyundai is investing in an electric car plant with annual production capacity of 250,000 vehicles. An investment consortium from South Korea, Japan and China is building a $4 billion EV battery plant.
In addition, Thailand, Malaysia and Indonesia – the “Big Three” – have released their respective roadmaps for electric vehicles.
India, home to a population of 1.3 billion, boasts demographic dividend, a massive and fast expanding domestic market, and rapidly growing construction, automotive and chemical industries.
China rises as a popular regional headquarter location
The global appeal of China’s enormous market is self-evident. The nation continues to see advancement of urbanization, release of purchasing power of non – tier – 1 cities, a thriving digital economy, leading 5G and blockchain technology, and connected mobility. The sheer size of its domestic market volume, booming exports, and strong investment are driving China’s economy on a high-quality growth path.
In spite of the global economic slowdown, foreign-invested enterprises in China remain optimistic about the Chinese market and continue to invest at these critical times. China is the world’s largest producer and consumer of chemicals. There is no slowdown in the investment of foreign plastics machinery and materials suppliers, who are increasingly setting up regional headquarters, production bases, and/or R&D centers in China. German chemical giant BASF is investing a total of $10 billion in an integrated production base in Guangdong. It is also building a brand new innovation park in Shanghai and a comprehensive surface treatment site in Zhejiang. ExxonMobil, Lanxess, Solvay, Dow Chemical, Shell, Saudi, Saudi Aramco and many more well-known multinational companies are also expanding their investment in China with major petrochemical projects via joint venture or sole proprietorship.
Grounded in Asian markets
To seize the opportunity with rising Asian economies, the plastics and rubber industries must not miss the upcoming CHINAPLAS 2020. As the leading global trade show in the industry, CHINAPLAS was launched in 1983 and has witnesses the sectors’ development along with China’s economic transformation. CHINAPLAS will present 3,900+ exhibitors (more than 2,500 exhibitors from China), 11 country/region pavilions including Germany, Italy, U.S., and Japan, as well as 19 theme zones, centering around innovative solutions in plastics and rubber machinery, materials and processes.
Visitors will be able to take a peek at the most cutting-edge technologies in the world, but also find highly cost-effective solution packages. China’s plastics and rubber machinery and material have made great progress and gained market popularity with technologies comparable to international standards, excellent durability and stability, quality of service and cost-effectiveness. In Asia, especially Southeast Asia, machinery and materials from China well fit the needs of the industry at the current stage.
Song Yew Eng from Malaysia’s Chuan Weng Plastic SDN BHD said, “In the past, we relied on labor supply from Indonesia and Vietnam to offset our shortage, but workers from Vietnam are on the decline. I found the right machinery at CHINAPLAS to make up for our labor shortage. There are lots of options for semi-automatic machines that meet production needs and are cost-effective at the same time. As of now, our production has not reached the stage of full automation, and high-end machinery does not suit our current particular needs.”
Due to the relatively weak industrial infrastructure in Vietnam, the plastics industry there faces shortages of raw materials and processing equipment – companies there are in dire need of advanced production equipment and materials. Tran Ngoc Linh, Director of Manutronics in Vietnam, stated during his last CHINAPLAS visit, “I’m from Vietnam. I come to CHINAPLAS mainly to find new business and new partners. Since we are now focusing on one-stop solutions, we are looking for materials for electronic components. The show is massive. I’ve spent two days on the show floor, but still haven’t been able to visit all of the suppliers that I’m interested in.”
CHINAPLAS has deep roots in China but has tasked itself with serving the Asian markets to the fullest. Regardless of their region and business scale, visitors will for sure gain a lot – find suitable products and solutions to tackle business growth challenges, reduce production costs, reach breakthroughs in new product development, and accomplish environmentally friendly and sustainable growth.
CHINAPLAS is scheduled to return to the National Exhibition and Convention Center, in Hongqiao, Shanghai, PR China on April 21-24, 2020. This iconic industry event is expected to present 340,000 square meters of exhibition space, bring together 3,900+ global exhibitors and 180,000+ visitors, to join hands to overcome the challenges, and together create a prosperous future.
For more information about CHINAPLAS 2020, please visit the official show website at www.ChinaplasOnline.com.
CHINAPLAS moves to Shenzhen for April 2021 debut
The 34th edition of CHINAPLAS has been rescheduled to April 13-16, 2021, at a new venue –– Shenzhen World Exhibition & Convention Center. This will be the first time for CHINAPLAS to be held in Shenzhen. The trade fair will alternate between Shenzhen (odd years) and Shanghai (even years) in the future, continuing to empower upstream and downstream plastics and rubber companies to uncover greater opportunities in the new phase of China’s economic development.
|CHINAPLAS online press conference|
Adsale Exhibition Services Ltd., organizer of CHINAPLAS 2021, held a press conference at 20:00 (Beijing time) on June 23, leveraging online video conferencing tools for the first time to virtually communicate and interact with more than 100 Chinese and international media. During the press conference, Mr. Stanley Chu, Chairman of Adsale, Ms. Ada Leung, General Manager of Adsale, and Ms. Norris Chu, Project Director of Adsale, announced the latest updates about the trade show, shared word of emerging developments from a new starting point, and discussed post-pandemic opportunities in the plastics and rubber industries.
|100+ Chinese and international media joined the press conference|
Focus on Greater Bay Area’s geographic advantages
“Shenzhen combines China’s enormous market potential and its unique geographic advantages, and the upcoming CHINAPLAS will help to position the plastics and rubber industries to seize new growth opportunities,” Ada Leung said.
- Unparalleled advantages of domestic market – Impacted by COVID-19 pandemic, the global economy is in a deep recession. Facing downward pressure from foreign trade, China’s State Council is redirecting the economic focus from export to a domestic-demand-driven model as the new normal. China’s 1.4-plus-billion population and 400-plus-million middle-income consumers represent the largest such grouping in the world, with consumption potential unmatched by any other economy. The expansion of China’s middle class has created tremendous potential for consumption upgrading. In recent years, some labor-intensive and low-end manufacturing work has shifted to other countries. The impact of COVID-19 is reshuffling the global economy and triggering major changes in manufacturing supply chains. China is repositioning itself in the global value chain and climbing toward the higher-end with high-tech products increasingly flowing from China to overseas markets, including such items as communications equipment, high-speed rail systems, and drones. Driven by research and innovation, industries continue to reform and upgrade, in turn increasing the demand for innovation and smart manufacturing in the plastics and rubber industries. In addition, China is actively responding to plastics pollution, accelerating green and sustainable development, and creating market demand for much-needed recycling and green technologies.
- Greater Bay Area, major upside for the industries – The Guangdong-Hong Kong-Macau Greater Bay Area is the largest bay area in the world, accounting for 0.6% of China’s land area, 5% of its population, and 12% of the national Gross Domestic Product. Its GDP is expected to reach 28.9 trillion RMB (about US$4.09 trillion) by 2030, ranking among the top 10 economies in the world. The “9+2” cities” are accelerating their coordinated development, building a vibrant world-class city cluster, and stimulating new economic momentum. The Greater Bay Area is not only an international center of scientific and technological innovation, but also the most concentrated region for plastics processing in China. Plastic products output within the nine cities reached 11.17 million metric tons in 2019, representing more than 13.6% of the national total (second only to Zhejiang Province) or 83.4% of Guangdong Province’s total output. The region’s huge market, together with its abundant resources and strong innovation, will help to further advance the plastics and rubber industries.
- Shenzhen at full throttle – Shenzhen was made a Pilot Demonstration Area in 2019, as well as being one of the core engines of the Greater Bay Area. In 2018, the total industrial added-value of the Greater Bay Area reached 2.82 trillion RMB (about US$399 billion), of which Shenzhen accounted for the lion’s share of 32.3%. “Technology + Innovation” is Shenzhen’s business profile, with more than 3 million companies located there, including Huawei, ZTE, Tencent, DJI, BYD, TCL and other industrial leaders. In 2018, Guangdong Province invested 270.47 billion RMB (US$38.3 billion) into R&D funding – the highest in China – and Shenzhen was the leading city within Guangdong.
Embrace post-pandemic opportunities
Over the years, China’s plastics and rubber industries have laid a solid foundation and built strong resilience and continuity into the economy. Combined with continually emerging new trends and opportunities, all signs currently point to a positive outlook. In the first quarter, as a result of the coronavirus pandemic, business shutdowns, the Chinese New Year off-season and other factors, China’s plastic products output dropped 22.9% from the same year-ago period. Production resumed in April in an orderly way, and industries’ supply chains gradually returned to normal operations. In April, the year-on-year decline in the total output of plastic products narrowed, achieving a recovery of 8.6% from the previous month. In the battle against the pandemic, plastics played a key role in the production and supply of vital healthcare materials, personal protective equipment, medical supplies, and medical facility construction.
The pandemic also fueled the rapid growth in demand for take-away service, fresh meal delivery, express delivery, convenience foods, household electronic product, medical supplies and fitness equipment. The post-pandemic era is seeing the acceleration of next-generation 5G wireless technology, artificial intelligence (AI), autonomous vehicles, high-end medical products, antibacterial and antimicrobial surfaces for use in everything from cars to appliances, and more. Demand is expected to remain strong for new materials and technology, including those for key medical applications, safe and protective packaging, and digital production –– as well as for recycled and recyclable materials.
5G is the frontrunner when it comes to the “new infrastructure”. CHINAPLAS 2021’s new rotation to Shenzhen has the unique advantage to help companies in the plastics and rubber industries to seize opportunities in this fast-growing infrastructure space. Shenzhen is actively building a world-class 5G industrial cluster, and is home to a complete 5G industry chain of globally competitive enterprises such as Huawei, ZTE, and more. The resources related to this concentrated cluster are helping to accelerate 5G application development. As a high-tech, high-quality and high-value trading and technology platform that caters to the latest market trends, CHINAPLAS 2021 will enable industry players to respond swiftly to market needs and stay ahead of the curve in a dynamic environment.
Debut in the Greater Bay Area
“In addition to the favorable outlook of the Greater Bay Area, CHINAPLAS’ decision to move to Shenzhen also takes into account the Shenzhen World Exhibition & Convention Center, an ideal venue for a world-class trade show,” notes Norris Chu. “We’ve been doing a field assessment and multi-party evaluation since the center launched in September 2019. Its 400,000 sqm of indoor exhibition space can alleviate the constraint of booth area we experienced in Guangzhou and support CHINAPLAS’ long-term growth. All of the 19 exhibition halls feature column-free structures and are located on the first floor, very suitable for displaying large-scale machines, and easy for visitors to navigate. The advanced hardware features and supporting services will provide exhibitors and visitors a very convenient and refreshing experience.”
|The fairground is situated at the heart of the Greater Bay Area.|
The Shenzhen World Exhibition & Convention Center is situated at the heart of the Greater Bay Area. It is located in the center of the city cluster and close to the Shenzhen Bao’an International Airport, well-connected to the Hong Kong International Airport. Sea, land and air transportation are readily available in all directions and routes, and the industrial cities in the Pearl River Delta are closely linked. It is particularly worth noting that this is the world’s first exhibition center with full 5G coverage. Chinese and international exhibitors and visitors will be able to experience eye-opening intelligent and innovative services, such as dining, navigation, parking, and so on.
“CHINAPLAS+” Online + Offline New Trade Services Experience
In addition to a new fairground experience, CHINAPLAS 2021 will also leverage an “online + offline” strategy to unlock new trade services experience. As advanced deployment of digital technology is a trend embraced by all industries, CHINAPLAS is also accelerating the integration of online and offline show experiences. The organizer is pleased to be launching “CHINAPLAS+”. For online experiences, CHINAPLAS has successfully held nine webinars on hot topics during the pandemic, building a cloud communication bridge for industry players. The organizer soon will be introducing an online business matching service, extending the value of matching demand and supply online; during the show, the organizer will partner with Chinese and international media to provide live streaming of the trade show and facilitate online interaction. For offline experiences, the organizer will host new technical seminars and publish materials such as “FEATURE: RESUMING PRODUCTION” prior to the show, whereas international forums on industry trends, Tech Talk, thematic events on hot topics will be organized during the show to create a seamless integration between online and offline activities and transform a four-day exhibition to a 365-day, non-stop communication platform.
Dig deep into the new potential of the Asian market
While based in China, CHINAPLAS, the International Exhibition on Plastics and Rubber Industries, has a strong influence throughout Asia. In 2019, the show attracted 163,000+ visitors, 22.8% from overseas – of which 70% were Asian visitors. Asia is the world’s most dynamic region with unique advantages. It accounts for more than half of the world’s population, features an ever-expanding middle class, continually upgrading consumption and technically advancing industries, and growing demands for plastics materials and machinery. The exhibition will continue to deepen its focus on the Asian market through multi-faceted promotion to fully tap the unlimited potential of the market.
With “New Era· New Potential· Innovation for Sustainability” as the new theme and slogan, CHINAPLAS 2021 will take over the Shenzhen World Exhibition & Convention Center, from April 13-16 next year, with more than 3,600 global exhibitors occupying a world-class exhibition area of 300,000 sqm. We hope you can join us, along with visitors from different enduser markets of plastics and rubber industries from around the globe, to explore the countless materials innovations and technology developments in this exciting new location and venue.
See you in Shenzhen next year!
 The “9+2” cities refer to the 9 cities: Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, Zhaoqing; and 2 Special Administrative Regions: Hong Kong and Macao.
Radici Group and Atalanta, together for Bergamo
Radici Group and Atalanta take it to the pitch, but this time it is a match for solidarity. The two Bergamo-based companies have decided to support the temporary field hospital that the Associazione Nazionale Alpini (National Association of Italian Alpine Soldiers) is building in the premises of Bergamo trade fair, with the aim of responding to the Coronavirus emergency.
Specifically, RadiciGroup and Atalanta will contribute by purchasing all the necessary tools for oxygen supply destined to 200 hospital beds for Covid-19 patients.
“We have decided to take part in this project – RadiciGroup and Atalanta announced in a joint statement – because it embodies the ‘made in Bergamo’ spirit at its best. The Alpine soldiers (famous for their hard work), are one of the symbols of the Bergamo province, which traditionally values work. It is an initiative that comes from this territory destined to this territory, and for this reason we proudly want to be part of it”.
Once again this project is coordinated by the Accademia del Tennis per la Solidarietà (the Academy of Sports for Solidarity). This charity association has already provided the Hospital “Bolognini” of Seriate, near Bergamo, with a mobile HR-CT with the support of fifteen local companies, among which RadiciGroup and Atalanta.
This HR-CT is essential for diagnostic in-depth analyses for patients showing breathing problems related to the Covid-19. In this way, the new temporary field hospital will take some pressure away from the hospitals of Bergamo currently overwhelmed.
CHINAPLAS 2020 has been postponed
Due to Corona virus epidemic in China, show organisation committee has made an announcement to postpone the event.
The announcement by the organisation:
“In order to control the novel coronavirus epidemic in China and in accordance with the instructions issued by the Shanghai city government to stop all large-scale activities, please be informed that CHINAPLAS 2020, the 34th International Exhibition on Plastics and Rubber Industries, scheduled to be held on 21-24 April 2020 at National Exhibition and Convention Center in Shanghai will be postponed. New dates for the show will be announced at a later time.
As the show organizer, we sincerely apologize for any inconvenience caused due to the show postponement. Health and safety of all show participants are at our top priority therefore we have to make this decision. Please be assured that we will continue to closely monitor the epidemic situation and keep you well-informed of any further news about CHINAPLAS 2020. The Adsale team and our official service providers will always be at your service and we will give you our best support in preparing for the rescheduled show.
Thank you very much for your kind understanding and continual support. Should there be anything we could be of assistance, please do not hesitate to contact us.”
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