“Troika†promotes the industry to become bigger and stronger——An interview with Zhu Dongqing, Chairman of the China Building Waterproofing Association According to the China Construction Waterproofing Association, with the advancement of China’s urbanization construction and the rapid growth of industrial investment, the next 5 to 10 years , China's construction waterproofing industry will usher in a golden period of development. At the 2010 China Construction Waterproofing Industry Annual Conference held in the previous month and the 6th General Assembly of the China Construction Waterproofing Association, this expectation was widely recognized. The annual meeting coincided with the handover of the “Eleventh Five-Year†and “Twelfth Five-Year Planâ€. The meeting made an objective and comprehensive summary of the five-year development of the building waterproofing industry, and conducted a rational analysis and forecast of the industry's future trends. After the meeting, the reporter conducted an exclusive interview with Mr. Zhu Dongqing, Chairman of the China Building Waterproofing Association.
Reporter: In the past five years, how has China's building waterproofing industry achieved a leap from small to large?
Zhu Dongqing: During the "Eleventh Five-Year Plan" period, it is a five-year period of rapid development of China's construction waterproofing industry. “From small to large†includes two aspects: First, the application fields of building waterproof materials and technology have been significantly expanded. Previously, waterproof materials were mainly used in housing construction and have now been extended to house construction, rail transit, highways, and airports. The construction of many infrastructure construction projects came up; Second, the scale of the enterprises in this industry had a noticeable increase. There were almost no enterprises with sales revenue of hundreds of millions yuan in the industry five years ago, and nearly 100 companies have now reached 100 million yuan. threshold. In October of this year, Beijing Oriental Yuhong Waterproofing Technology Co., Ltd., a leading company in the building waterproofing industry, acquired Yunnan Kunming Fengxing Waterproofing Material Co., Ltd. for a total price of 26.5 million yuan, and laid out the southwestern market, forming a nationwide production and sales network. According to the company’s third-quarter financial report in 2010, its sales in the first three quarters have reached 1.3 billion yuan, and it is expected that annual sales will reach nearly 2 billion yuan. In addition, Shenzhen Zhuobao Science and Technology Co., Ltd., Shandong Weifang Hongyuan Waterproof Material Co., Ltd., and Weifang Yuhong Waterproofing Material Co., Ltd. will each achieve sales of more than RMB 500 million this year. Overall, the average annual growth rate of the overall production scale of the waterproofing industry during the “11th Five-Year Plan†reached 10.27%, which experienced a rapid growth process.
Reporter: From the current point of view, what are the main problems in the development of the construction waterproofing industry?
Zhu Dongqing: The decentralized industrial structure is a prominent problem in the construction waterproofing industry. At present, China's building waterproofing materials mainly include new waterproof materials such as SBS/APP modified bitumen waterproofing membranes, polymer waterproofing membranes, waterproof coatings, glass fiber asphalt shingles, and self-adhesive waterproofing membranes, as well as petroleum asphalt tar mats and asphalt. Asphalt linoleum waterproofing membrane based on composite tire flexible waterproofing membrane. These materials, especially traditional waterproof materials, have low technical barriers and low entry barriers for enterprises, directly leading to more SMEs in the industry. According to the statistics of the National Bureau of Statistics from January to October this year, the total output value of small and medium-sized waterproof enterprises accounted for more than 90% of the entire industry. The proportion of large-scale enterprises is too low, and the industry concentration is too low. The large number of enterprises will lead to more fierce competition in the market and resources. At the same time, it will bring about problems such as homogenization of competition, redundant construction, and serious overcapacity. Frankly speaking, most enterprises in the industry currently have problems with insufficient operating rates. .
Reporter: How to solve the problem of serious overcapacity?
Zhu Dongqing: On the one hand, it is necessary to use the power of the market to make the survival of the fittest. On the other hand, it also depends on the guidance of the relevant government departments, and the adoption of relevant policies to promote the elimination of backward production capacity. For example, the Ministry of Industry and Information Technology recently released the "Guided Catalogue of Obsolete Production Process Equipment and Products for Selected Industries (2010)", which stipulates that the annual output of modified bitumen waterproofing membranes with an annual output of 5 million square meters or less in the waterproof material industry and annual output Less than 5 million square meters of flexible waterproofing membrane production line for bituminous compound tires and the backward production equip- ment and products with an annual output of 1 million rolls of asphaltum tar felt production lines shall be phased out within a certain period of time, and shall not be transferred, produced, sold or used. At the same time, the Building Waterproofing Association is also actively involved in the preparation and promotion of the “Implementation Rules for Construction Waterproof Coil Production Licencesâ€, through the implementation of the “Production Licence†system, improving industry access barriers, improving the industry structure, and standardizing the market order.
Reporter: In the discussion of this annual meeting, the acceleration of the national urbanization process and other favorable factors showed the industry the bright prospects of the construction waterproofing industry. In the upcoming 2011, what are the uncertainties faced by the development of the waterproofing industry?
Zhu Dongqing: Although the waterproof industry will face rare development opportunities for a period of time in the future, this has reached consensus. However, some unfavorable factors in the market cannot be ignored. The loose monetary policy of the United States, the spread of the Irish economic crisis and more frequent anti-dumping actions have further complicated the international market. At the same time, the domestic economic fluctuations will also increase. In the post-four trillion yuan era, the total investment in infrastructure was relatively reduced, the investment policy for commercial housing was tightening, and the growth rate of affordable housing was unfavorable. These were negative factors for the waterproof building materials market. In addition, upstream raw material markets such as asphalt and other petrochemical products have been operating at high levels, high oil prices, rising energy prices, and rising human resource costs and shipping costs will bring greater pressure on companies. Enterprises should cautiously face these unfavorable factors, rationally arrange production, vigorously promote technological innovation, and respond to market changes.
Reporter: In the face of many uncertainties and the current problems in the industry, what should be the next step in building waterproofing?
Zhu Dongqing: During the “Twelfth Five-Year Plan†period, the building waterproofing industry faces three major development tasks: First, continuously meet the needs of the rapid development of the construction industry; Second, vigorously improve the durability of waterproof products; Third, focus on transforming the economy of the waterproofing industry. Development methods. Among them, the transfer method is the most arduous task. In this regard, technological innovation, industry restructuring, and energy conservation and emission reduction are the “three carriages†that have driven the transformation of the building's waterproofing industry to continuous growth. Technological innovation is the core competitiveness of companies and industries. In 2007, the Waterproofing Association had proposed setting up a scientific and technological innovation year for China's building waterproofing industry, and jointly with the Ministry of Construction, the “National Construction Industry Science and Technology Achievements Promotion Project—Specialized Technologies and Products for Building Waterproofing†was selected. There are currently two batches of 88 in total. The list of projects has promoted the scientific and technological innovation of enterprises. In the next step, the association will also integrate superior resources, promote the combination of production, education, research, and use, and transform innovative technological achievements into advanced productivity. Industry restructuring is the key to improving the decentralized status of the industrial structure. In line with the market's role in optimizing resources allocation, enterprises are encouraged to list on the capital market, support and guide enterprises to become bigger and stronger through mergers and acquisitions, form a group of key enterprise groups, improve the overall competitiveness of the industry, and achieve the goals of large companies. Strong, medium-sized and small-sized enterprises are the focus of the next industry development.
In addition, the work of energy conservation and emission reduction will also be the focus of work during the “12th Five-Year Plan†period. Energy conservation and emission reduction include two aspects. First, energy conservation and emission reduction of building facilities are achieved through the application of new types of waterproof materials, and second, energy conservation and emission reduction during the production and use of waterproof materials. Here, on the one hand, energy saving and emission reduction should be implemented through the improvement of the company's own technological level; on the other hand, the industry association is currently working out energy consumption standards for the building waterproofing industry. The formulation of other environmental protection standards will also be a key task during the 12th Five-Year Plan period. This will take energy-saving emission reduction from the industry level and promote industrial upgrading.
Reporter: During the “Twelfth Five-Year Plan†period, what is the expected development goal of the construction waterproofing industry?
Zhu Dongqing: According to China's “Twelfth Five-Year Plan†proposal, considering the economic situation during the “Twelfth Five-Year Plan†period in China and the future development environment of the waterproofing industry, the development goals of the waterproof industry in the next five years mainly include several aspects: First, waterproof The output of materials steadily increased, basically eliminating the use of bitumen linoleum waterproofing membranes, the annual growth rate of new waterproofing materials maintained at double digits or more, and the total application volume reached 1.66 billion square meters; secondly, the industry concentration continued to increase, and the “Twelfth Five Year Plan†period had More than 10 companies with sales exceeding 1 billion yuan, enterprises with over 5 billion yuan, 50 percent of the top 50 companies, and 2-3 regional industrial bases built on existing foundations. The advantages of industrial clusters; Third, the product brand construction has been significantly enhanced, and strives to form 30 to 50 brand-name products that have market competitiveness within the country and in the professional field. The association will also develop brand building and credit system in this area. The fourth is to enhance the ability of independent innovation and to cultivate professional and technical personnel. The fifth is to enhance the international competitiveness of enterprises. International exhibition market. Although the construction waterproofing industry is a small industry, it is an important industry related to construction safety, people's livelihood engineering, environmental protection, and building energy conservation. The rapid development of the past few years has laid a good foundation for the further growth of the industry. In the face of the upcoming “12th Five-Year Planâ€, the building waterproofing industry should also review the situation, correctly treat the current market situation and the status quo in the industry, and related policies. Under the guidance of the government, we will make more positive contributions to the development of China's construction industry.
Reporter: In the past five years, how has China's building waterproofing industry achieved a leap from small to large?
Zhu Dongqing: During the "Eleventh Five-Year Plan" period, it is a five-year period of rapid development of China's construction waterproofing industry. “From small to large†includes two aspects: First, the application fields of building waterproof materials and technology have been significantly expanded. Previously, waterproof materials were mainly used in housing construction and have now been extended to house construction, rail transit, highways, and airports. The construction of many infrastructure construction projects came up; Second, the scale of the enterprises in this industry had a noticeable increase. There were almost no enterprises with sales revenue of hundreds of millions yuan in the industry five years ago, and nearly 100 companies have now reached 100 million yuan. threshold. In October of this year, Beijing Oriental Yuhong Waterproofing Technology Co., Ltd., a leading company in the building waterproofing industry, acquired Yunnan Kunming Fengxing Waterproofing Material Co., Ltd. for a total price of 26.5 million yuan, and laid out the southwestern market, forming a nationwide production and sales network. According to the company’s third-quarter financial report in 2010, its sales in the first three quarters have reached 1.3 billion yuan, and it is expected that annual sales will reach nearly 2 billion yuan. In addition, Shenzhen Zhuobao Science and Technology Co., Ltd., Shandong Weifang Hongyuan Waterproof Material Co., Ltd., and Weifang Yuhong Waterproofing Material Co., Ltd. will each achieve sales of more than RMB 500 million this year. Overall, the average annual growth rate of the overall production scale of the waterproofing industry during the “11th Five-Year Plan†reached 10.27%, which experienced a rapid growth process.
Reporter: From the current point of view, what are the main problems in the development of the construction waterproofing industry?
Zhu Dongqing: The decentralized industrial structure is a prominent problem in the construction waterproofing industry. At present, China's building waterproofing materials mainly include new waterproof materials such as SBS/APP modified bitumen waterproofing membranes, polymer waterproofing membranes, waterproof coatings, glass fiber asphalt shingles, and self-adhesive waterproofing membranes, as well as petroleum asphalt tar mats and asphalt. Asphalt linoleum waterproofing membrane based on composite tire flexible waterproofing membrane. These materials, especially traditional waterproof materials, have low technical barriers and low entry barriers for enterprises, directly leading to more SMEs in the industry. According to the statistics of the National Bureau of Statistics from January to October this year, the total output value of small and medium-sized waterproof enterprises accounted for more than 90% of the entire industry. The proportion of large-scale enterprises is too low, and the industry concentration is too low. The large number of enterprises will lead to more fierce competition in the market and resources. At the same time, it will bring about problems such as homogenization of competition, redundant construction, and serious overcapacity. Frankly speaking, most enterprises in the industry currently have problems with insufficient operating rates. .
Reporter: How to solve the problem of serious overcapacity?
Zhu Dongqing: On the one hand, it is necessary to use the power of the market to make the survival of the fittest. On the other hand, it also depends on the guidance of the relevant government departments, and the adoption of relevant policies to promote the elimination of backward production capacity. For example, the Ministry of Industry and Information Technology recently released the "Guided Catalogue of Obsolete Production Process Equipment and Products for Selected Industries (2010)", which stipulates that the annual output of modified bitumen waterproofing membranes with an annual output of 5 million square meters or less in the waterproof material industry and annual output Less than 5 million square meters of flexible waterproofing membrane production line for bituminous compound tires and the backward production equip- ment and products with an annual output of 1 million rolls of asphaltum tar felt production lines shall be phased out within a certain period of time, and shall not be transferred, produced, sold or used. At the same time, the Building Waterproofing Association is also actively involved in the preparation and promotion of the “Implementation Rules for Construction Waterproof Coil Production Licencesâ€, through the implementation of the “Production Licence†system, improving industry access barriers, improving the industry structure, and standardizing the market order.
Reporter: In the discussion of this annual meeting, the acceleration of the national urbanization process and other favorable factors showed the industry the bright prospects of the construction waterproofing industry. In the upcoming 2011, what are the uncertainties faced by the development of the waterproofing industry?
Zhu Dongqing: Although the waterproof industry will face rare development opportunities for a period of time in the future, this has reached consensus. However, some unfavorable factors in the market cannot be ignored. The loose monetary policy of the United States, the spread of the Irish economic crisis and more frequent anti-dumping actions have further complicated the international market. At the same time, the domestic economic fluctuations will also increase. In the post-four trillion yuan era, the total investment in infrastructure was relatively reduced, the investment policy for commercial housing was tightening, and the growth rate of affordable housing was unfavorable. These were negative factors for the waterproof building materials market. In addition, upstream raw material markets such as asphalt and other petrochemical products have been operating at high levels, high oil prices, rising energy prices, and rising human resource costs and shipping costs will bring greater pressure on companies. Enterprises should cautiously face these unfavorable factors, rationally arrange production, vigorously promote technological innovation, and respond to market changes.
Reporter: In the face of many uncertainties and the current problems in the industry, what should be the next step in building waterproofing?
Zhu Dongqing: During the “Twelfth Five-Year Plan†period, the building waterproofing industry faces three major development tasks: First, continuously meet the needs of the rapid development of the construction industry; Second, vigorously improve the durability of waterproof products; Third, focus on transforming the economy of the waterproofing industry. Development methods. Among them, the transfer method is the most arduous task. In this regard, technological innovation, industry restructuring, and energy conservation and emission reduction are the “three carriages†that have driven the transformation of the building's waterproofing industry to continuous growth. Technological innovation is the core competitiveness of companies and industries. In 2007, the Waterproofing Association had proposed setting up a scientific and technological innovation year for China's building waterproofing industry, and jointly with the Ministry of Construction, the “National Construction Industry Science and Technology Achievements Promotion Project—Specialized Technologies and Products for Building Waterproofing†was selected. There are currently two batches of 88 in total. The list of projects has promoted the scientific and technological innovation of enterprises. In the next step, the association will also integrate superior resources, promote the combination of production, education, research, and use, and transform innovative technological achievements into advanced productivity. Industry restructuring is the key to improving the decentralized status of the industrial structure. In line with the market's role in optimizing resources allocation, enterprises are encouraged to list on the capital market, support and guide enterprises to become bigger and stronger through mergers and acquisitions, form a group of key enterprise groups, improve the overall competitiveness of the industry, and achieve the goals of large companies. Strong, medium-sized and small-sized enterprises are the focus of the next industry development.
In addition, the work of energy conservation and emission reduction will also be the focus of work during the “12th Five-Year Plan†period. Energy conservation and emission reduction include two aspects. First, energy conservation and emission reduction of building facilities are achieved through the application of new types of waterproof materials, and second, energy conservation and emission reduction during the production and use of waterproof materials. Here, on the one hand, energy saving and emission reduction should be implemented through the improvement of the company's own technological level; on the other hand, the industry association is currently working out energy consumption standards for the building waterproofing industry. The formulation of other environmental protection standards will also be a key task during the 12th Five-Year Plan period. This will take energy-saving emission reduction from the industry level and promote industrial upgrading.
Reporter: During the “Twelfth Five-Year Plan†period, what is the expected development goal of the construction waterproofing industry?
Zhu Dongqing: According to China's “Twelfth Five-Year Plan†proposal, considering the economic situation during the “Twelfth Five-Year Plan†period in China and the future development environment of the waterproofing industry, the development goals of the waterproof industry in the next five years mainly include several aspects: First, waterproof The output of materials steadily increased, basically eliminating the use of bitumen linoleum waterproofing membranes, the annual growth rate of new waterproofing materials maintained at double digits or more, and the total application volume reached 1.66 billion square meters; secondly, the industry concentration continued to increase, and the “Twelfth Five Year Plan†period had More than 10 companies with sales exceeding 1 billion yuan, enterprises with over 5 billion yuan, 50 percent of the top 50 companies, and 2-3 regional industrial bases built on existing foundations. The advantages of industrial clusters; Third, the product brand construction has been significantly enhanced, and strives to form 30 to 50 brand-name products that have market competitiveness within the country and in the professional field. The association will also develop brand building and credit system in this area. The fourth is to enhance the ability of independent innovation and to cultivate professional and technical personnel. The fifth is to enhance the international competitiveness of enterprises. International exhibition market. Although the construction waterproofing industry is a small industry, it is an important industry related to construction safety, people's livelihood engineering, environmental protection, and building energy conservation. The rapid development of the past few years has laid a good foundation for the further growth of the industry. In the face of the upcoming “12th Five-Year Planâ€, the building waterproofing industry should also review the situation, correctly treat the current market situation and the status quo in the industry, and related policies. Under the guidance of the government, we will make more positive contributions to the development of China's construction industry.