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(Published on December 2005 – JEC Magazine #21)
AN INTERVIEW WITH TANG ZHIYAO, GENERAL MANAGER, CPIC FIBERGLASS
JEC Composites Magazine: Could you give us your opinion about the world market in general, the trends, and the Chinese market?
Tang Zhiyao: Different people have different opinions about the world market. U.S. people have a U.S.-style opinion and Europeans and Chinese have another opinion. The composite market in recent years has experienced a rapid development and in the future, I believe there will be continuous development. And you can get evidence of that from the expansion of fibreglass and composites in China.
J.C.M.: What exactly is the main trend in China?
T.Z.: Last year, total production of fibreglass in China was 600,000 metric tonnes. This year, we will reach 850,000 metric tonnes and next year, the total production should exceed one million metric tonnes.
J.C.M.: What is your market share of the Chinese market?
T. Z.: About 10%
J.C.M.: What is CPIC’s main target in the world market and in the Chinese market?
T. Z.: Currently, the overseas market accounts for 70% of our total sales. But as we expand our fibreglass capacity, I think the domestic market and the overseas market will be about the same, around 50% each. Already, the market is developing fast and the Far East is the fastest-growing market in the world.
J.C.M.: Which sector is driving the market?
T. Z.: First of all, we have our Chinese customers – our local customers – and they have expanded. The others are global players from Japan, Germany and the U.S. They are moving their capacity from Japan, Germany and the U.S. to China.
This makes the market grow, especially customers for thermoplastics. And then, famous global products are bringing customers into China. Lot of FRP customers from Taiwan and Japan are building plants.
J.C.M.: Do you intend to have plants outside China?
T. Z.: Well, China is the most economical place to make fibreglass, for example. So why would we need to build plants outside China?! You can see from this that CPIC is a big player, just like Owens Corning, PPG, Saint-Gobain Vetrotex, Johns Manville and so on. We’re saying that local fibreglass manufacturers are respected in their own market and concentrate more on this than seeking prosperity outside.