The hottest review of the glass industry is what b

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Review: what blocked the profit of the glass industry?

the glass industry is facing a "severe winter"

last year, the output of China's glass industry increased by 13.7% over 2000. However, the net profit of the whole industry fell by more than 50% year-on-year. Some state-owned glass enterprises, which just turned around their losses in 2000, have suffered losses again

why? It is because the output growth rate is too rapid, and the supply and demand are seriously unbalanced

according to the statistics of the State Economic and Trade Commission, 39 float glass production lines have been built, put into operation, under construction and under preparation since 1999. Among them, 23 have been built to evaluate the ability of bundled cables to suppress flame spread under specified conditions. Another 10 have been completed this year and next, and another 6 are under preparation. The design capacity of 39 lines is 87.88 million weight boxes

according to the analysis and prediction of the market supply and demand situation and the principle that 3. The uniform production capacity ratio of joint welding package is 85% and the supply slightly exceeds the demand, by 2003, the cumulative new capacity will be about 44-50 million weight boxes. Even if calculated according to the high limit target, there will still be an excess capacity of 15million-20million weight boxes within three years. Therefore, some experts believe that the "severe winter" of the glass industry is coming

the "severe winter" in the glass industry has just passed. From 1995 to 1997, the glass industry suffered losses in the whole industry due to the excessive growth of about 10 new float glass production lines every year and the annual increase of output of more than 14%, resulting in oversupply and price decline. In 1997, the loss was nearly 1 billion. In 1998, the glass industry was the first to implement production restriction in China's industrial industry. Through measures such as eliminating small glass, not being on the new line for three years, and stopping low-cost dumping, 238 small glass production lines were closed, and the backward production capacity of 28.55 million weight boxes was reduced. Only then did the profit dawn reappear

repeated construction is the root cause

analyze the approval of 39 production lines, only 10 of which have been approved by the state for project establishment (or pending approval), 3 of which have been approved by the Provincial Planning Commission and the economic and Trade Commission according to the approval authority and procedures, the other 19 of which have been approved by the local authorities beyond their authority, and another 7 of which have been built by enterprises themselves. It is not difficult to see that the deviation of local government investment behavior is the profound reason for repeated construction in the glass industry. Under the current fiscal system of "eating from different stoves", local governments mainly focus on expanding investment to increase the national income of the region, and often take the projects that can see benefits as soon as possible as the priority investment target. In 2000, due to the effective control of the total amount of glass, the rise of prices, and the improvement of the economic benefits of enterprises, the total profit of the whole industry reached 1.69 billion yuan, and the sales profit margin reached 9.1%, higher than the average profit level of the industrial industry, so it became a "sweet cake" for local government investment

enterprises do not have enough analysis of product market and change law. "Only trees, not forests" is another important reason for repeated construction. Niu Jianguo, deputy director of the economic operation Bureau of the State Economic and Trade Commission, said that in countries with relatively developed market economy, the glass industry is generally controlled by several large companies with a high degree of concentration. At present, although China's glass output ranks first in the world, the competitiveness of enterprises is not strong. There are nearly 300 large and small enterprises, and the total output and market share of the top three largest enterprises are less than 1/7. Therefore, many enterprises hope to improve their competitiveness by expanding production capacity. However, from the situation of these 39 new lines, except for a few high-quality float glass lines that improve the variety structure and fill the market gap, the vast majority are ordinary float glass production lines. Although the overall level has been improved, and some backward production capacity has been eliminated and replaced, the main products are still oriented to the construction market for ordinary doors and windows, which is still a low-level scale expansion. The new 39 lines have not solved the structural shortage of high-grade and high-quality float glass in China

Hao Yafeng, director of the investment department of the State Economic and Trade Commission, believes that China has not yet formed a national unified investment information guidance system. Few departments or institutions can tell the current capacity, under construction capacity, proposed capacity and product structure of a product in the country. For specific owners, there is no way to understand the investment information across the country. If this problem is not solved, repeated construction is inevitable

five pronged approach to solve the root cause

in view of the serious phenomenon of repeated construction in the glass industry, the State Planning Commission and the State Economic and Trade Commission proposed that in the future, all projects involving the construction of new flat glass production capacity, regardless of scale and source of funds, should be submitted to the State Planning Commission and the State Economic and Trade Commission for approval according to the nature of the project. Foreign investment projects shall be examined and approved in accordance with relevant regulations

experts believe that it is necessary to take appropriate administrative measures to curb the current momentum of unreasonable repeated construction in the glass industry. But under the condition of market economy, administrative restraint alone is not enough. Comprehensive measures must be taken to fundamentally stop redundant construction

the State Economic and Trade Commission proposed to rectify from five aspects: first, commercial banks should pay attention to preventing investment risks. For flat glass projects that have not been approved by the state, loans, including short-term working capital loans, should not be given in a short time because of the accumulation of data. The funds raised by listed companies shall not be used for the construction of flat glass projects without state approval. The second is to increase the export tax rebate rate of glass and encourage the expansion of exports. Third, expand the application of float glass and promote the deep processing of glass. Formulate the "management measures for the production and use of energy-saving and safety glass in construction teams" to expand the scope of use of hollow and safety glass. Fourth, further improve the intensification of flat glass production, support enterprise restructuring and improve production concentration. Fifth, strengthen industry information guidance. Give play to the role of intermediary organizations such as China Building Materials Industry Association, widely collect domestic and foreign glass market information, predict glass demand, and guide enterprise investment decisions

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