Since its establishment in 1999, China Drying Technology has grown to become one of the largest and most professional industrial exhibitions in Africa. Its scale and influence rank first in the African continent. At the 2013 South African Industrial Technology Expo, the 2013 International Plastics Industry Exhibition will be one of the ten exhibitions of the Expo in Johannesburg to showcase the opportunities of African plastics industry to buyers and suppliers all over the world.
The fast-growing plastics industry in Africa has attracted more and more international companies into this tempting emerging market. According to statistics, in the past five years, the demand for plastic packaging in the African market has grown at an annual rate of 8%, while the growth rate in Western developed countries is only 3.6%. According to research conducted by Ringier Industries, the demand for plastic products in Africa has reached the highest level in history.
John Thomson, the organizer of the South African Industrial Technology Expo, believes that the growing middle class population in Africa and the growing disposable income of this group are the main reasons why Africa has become an important emerging market for the plastics industry in the world. “The expectations for Africa have never been so optimistic. There are two main reasons for this. First, Africa is the continent with the fastest rate of urbanization in the world, and the second is its rapidly growing middle-class population (over a billion people.) There are 300 million middle-class people in China that represent a huge consumer power."
Plastic machinery market into the focus of competition for all countries
The huge plastics market in Africa has played a role in the development of the plastics machinery industry. The plastics machinery industry has a wide range of applications, covering many fields such as packaging, agriculture, construction, and automobiles. The African plastics industry started relatively late, and the incremental demand for plastics machinery is relatively greater than other developed markets. In fact, in the long run, Africa has a large market for plastic machinery. Africa is gradually becoming an emerging potential market for plastic machinery, and it will also be the focus of competition among major countries in the production of plastics machinery. "Some companies have promised to set up plastic processing plants in African countries to reduce Africa's dependence on imported plastic products and raw materials," said Thomson. According to him, for the International Plastics Industry Exhibition to be held next year, companies from all over the world showed strong interest, especially from India, Australia and Indonesia.
For the African plastic machinery market, India has shown extreme enthusiasm and full confidence. India's plastic machinery and molds are quite competitive in the world because they are cheap and some of the mechanical qualities can even be compared to European and American brands. At present, India has stopped in the African market and has a strong position in Nigeria, Kenya, Ghana and South Africa.
For the African market, India's presses and press makers expressed their confidence that the number of presses exported to Africa in the next year is expected to increase by 20%. “The African countries are undergoing large-scale industrial development. There are unlimited business opportunities here. We have already established footholds in seven countries in Africa and plan to extend our foothold in Africa,†said Ranjan Kalyanpur, executive director of the Export Promotion Council of India.
As early as 2010, the Indian government formulated a promotion strategy for the plastics and other chemical industries in Africa and Latin America, which provided government-level support for the expansion of India's press industry in Africa. According to India’s foreign trade policy officials, these industrial sectors will be supported by the “Market Promotion Assistance Program†and the “Market Entry Startup Project†subordinated to the Indian Ministry of Commerce. The investment of enterprises in export promotion, including participation in trade shows and logistics fees, will be supported by the “Market Promotion Assistance Programâ€. The investment in market development, such as the opening of exhibition halls, participation in trade fairs, international shopping malls, etc., will be supported by the “Market Entry Projectâ€.
The huge potential of the African press market and the promotion of the Indian government’s export policies have prompted Indian companies to aggressively enter the African market. Today, India’s machinery manufacturers are increasingly exporting to Africa, and Indian resin and processing companies are also starting to invest in Africa. At the recent Indian Plastics Show, Indian companies generally reported that their business in Africa is growing. For example, CosmoFilms, India's premier film extrusion manufacturer, said it is choosing a suitable location in Africa to build a biaxially oriented polypropylene film production plant.
At present, French rubber and plastic machinery manufacturers have gradually opened up the African press market. The annual sales volume of French rubber and plastics machinery is approximately US$1.9 billion, ranking fourth in the global ranking after Japan, the United States, and Germany. In the past, France had ruled the African countries of Northwest Africa, West Africa and other places. So far, it still has considerable influence in the local area and it is easier to enter the market. Italian presses have been sold to countries such as Morocco, Egypt and Tunisia. Compared with other countries, the total value of presses sold to South Africa is the highest.
Africa offers opportunities for China presses
In recent years, the development of China's plastics machinery industry has been very rapid, basically achieving a leap-forward development, and the scale of the industry has also continuously expanded. According to the market size statistics of China's plastics machinery industry, at present, there are about 600 enterprises and units engaged in the manufacture of plastics machinery and related products in China, of which about 250 can provide plastic molding equipment. China's plastics machinery industry has a considerable scale. At present, China's major plastics machinery production capacity has exceeded 100,000 sets, of which more than 8,000 sets of extrusion equipment, more than 30,000 injection molding machines, more than 3,000 sets of hollow molding equipment, and plastics machinery. The annual output value reaches 8 billion to 10 billion yuan.
China's export of plastic products is mainly distributed in developing countries and regions in Asia, Africa and Latin America. In the past three years, China's exports to Asia, Africa and Latin America accounted for more than 80% of the total export volume of press equipment in the same period. Among them, the share of machinery equipment exported to Africa was 12.64% (2009), 9.8% (2010) and 9.41% (2011), which did not include parts sales, upgrade equipment upgrades, and current production lines. Supplementary equipment and so on.
After more than 30 years of rapid development, whether it is plastic machinery manufacturing or plastics processing technology, the technological level of Chinese companies has been greatly improved, and some have reached the international advanced level. For Chinese plastics processing companies, the timing for “going out†to seek business opportunities in Africa is ripe. At the same time, the increase in domestic labor costs and environmental protection costs has also forced Chinese companies to take new actions in opening up overseas markets.
In fact, the pace of China's presses into Africa has already taken a few years ago. Compared with European and American press brands known for their high quality and precision, the main competitive advantage of China's presses is competitive. Prices and rising quality. The price of machinery exported from Western European countries to China is very different from the price of Chinese equipment exported to other countries. The price of imported injection molding machines is three times higher than that of Chinese-made machines, while the prices of imported extruders and pelletizers are more than 30 times higher. For emerging markets such as Africa, quality clearance equipment with lower prices is more in line with market demand.
At present, China's presses enterprises have already entered Africa through simple mechanical equipment and spare parts exports, setting up offices, opening plastics factories in Africa, and setting up plastics machinery factories to establish wholly-owned or joint-venture companies. For China's press companies, actively developing products suitable for the African market, continuing technological upgrading, and focusing on product after-sales services can make better use of the African market to achieve its own development.
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