Guangzhou, Guangdong – Liming, a maker of PU systems, elastomers and adhesives for flexible foam, did not see its revenue grow last year, the company told UTECH-polyurethane.com in an exclusive interview at PU China 2017.
Based in Luoyan, Henan, the company has 100kT/year annual capacity but saw a rather low utilization rate last year, said Zhao Xiuwen, manager and engineer of the institute’s subsidiary PU Developing Company.
‘China’s MDI price doubled over the past year but only 10% of our additional cost can be transferred to our clients [in the automotive sector],’ said Zhao. ‘Those clients have high bargaining power.’
A number of smaller systems makers have been shut down in China’s latest round of environmental inspection, but Zhao believes it would hardly help ease the competition, as such lower-end products do not target the automotive sector.
Addressing the company’s earlier plan for expansion into overseas markets, Zhao admitted it hasn’t been successful. ‘The India market, for example, pays more attention to price than to quality,’ he said.
Exchange Rates: Xe.com 4 September 2017