Insulation in China Market

• Publication date: January 2013
• Report size: 209 pages

This study analyzes China’s insulation industry by product (e.g., foamed plastic, mineral wool, and fiberglass), by market (e.g., residential construction, nonresidential construction, and industrial and HVAC equipment) and by region (e.g., Central-North, Central-East, and Southwest). Reflective insulation and radiant barriers are excluded from the scope of the study. Historical data are provided for 2001, 2006, and 2011 with forecasts...

This study analyzes China’s insulation industry by product (e.g., foamed plastic, mineral wool, and fiberglass), by market (e.g., residential construction, nonresidential construction, and industrial and HVAC equipment) and by region (e.g., Central-North, Central-East, and Southwest). Reflective insulation and radiant barriers are excluded from the scope of the study.

Historical data are provided for 2001, 2006, and 2011 with forecasts for the years 2016 and 2021. The term “demand” is defined as shipment (also referred to as “production” or “supply”) plus imports minus exports. It is used interchangeably with the terms “market,” “sales,” and “consumption.” Data are presented in thousand metric tons, million yuan, and million square meters of R-1 value. The renminbi (or RMB) is the official currency of the People’s Republic of China, and the base unit of the renminbi is the yuan. The term “yuan” is used throughout this report when referring to currency amounts.

Overall demand for insulation products is also provided in US dollars. The official currency exchange rate is used in each year to convert current yuan to current dollars (with the October 31, 2012 exchange rate being used for 2016 and 2021).

In addition, major suppliers of insulation products are identified and profiled, and the key competitive variables for this industry are discussed. The entire report is framed within the Chinese insulation industry’s economic and market environments. Insulation-related revenues by company data presented in the “Industry Structure” section are estimates based upon consultation with multiple sources.

The Special Administrative Regions of Hong Kong and Macau are excluded from the scope of the study. These regions remain to a great extent economically independent from the rest of China, even though they returned to the People’s Republic of China in the late 1990s. Taiwan, which is economically independent from the rest of China and not under the administration of the central government, is also excluded from the scope of this study.

Macroeconomic indicators presented in this study were obtained from The Freedonia Group Consensus Forecasts dated June 2012. A wide variety of primary and secondary sources were also used in the compilation of this report. These include Chinese government statistical agencies (principally the National Bureau of Statistics of China), other Chinese government agencies (including the Ministry of Commerce, and the Ministry of Housing and Urban-Rural Development), the China Insulation & Energy Efficiency Materials Association, industry experts, financial sources, and insulation companies.

Data and background information were obtained from various news and trade publications, including Architectural Record; Building Energy & Environment; The China Business Review; China Construction News; China Daily; Heating, Ventilation & Refrigeration Equipment; People’s Daily; and Thermal Insulations & Energy-Saving Technology. Corporate annual reports, product literature, and other company information were also used in framing the industry and market environments and as input for market size assessments.

Statistics from various sources were carefully examined during the preparation of this study, and contradictions and discrepancies among data sources were noted. The accuracy and reliability of figures from each source were evaluated, and adjustments were made where deemed necessary. This was done in order to arrive at a consistent set of industry statistics, which are based on the best available information at the time this study was published. As a result, the data presented here may differ, sometimes substantially, from figures issued by official governmental sources.

Specialty Contractor Industry in China

TABLE OF CONTENTS

INTRODUCTION x

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Economic Overview 5
Recent Economic Performance 5
Economic Outlook 7
Demographic Overview 11
Population 12
Urbanization 14
Households 15
Personal Income Trends 16
Building Construction Overview 19
Residential 21
New Housing 23
Improvements & Repairs 23
Housing Stock 24
Nonresidential 26
New Construction 28
Improvements & Repairs 29
Building Stock 30
Industrialization & Manufacturing Trends 31
Pricing Trends 34
The Twelfth Five-Year Plan 36
International Environment 37
World Insulation Market 38
Foreign Trade & Multinational Investment 39

III. OVERVIEW 41

General 41
R-Values 42
Material Variation in Thermal Resistance 44
Environmental & Regulatory Issues 47
Energy Efficiency Considerations 47
Green Building Considerations 48
Renewable Resources & Recycling Considerations 49
Materials-Based Considerations 51
Insulation Demand 52

IV. PRODUCTS 55

General 55
Foamed Plastics 58
Product Forms 58
Markets 60
Resins 61
Rigid Urethane Foams 62
Products 63
Markets 64
Polystyrene 66
Products 67
Markets 68
Other Foamed Plastics 71
Mineral Wool 72
Materials 73
Product Forms 75
Markets 77
Fiberglass 79
Materials 80
Product Forms 81
Markets 82
Other Insulation Products 84
Materials 85
Product Forms 88
Markets 89

V. MARKETS 91

General 91
Demand by Market Value 92
Demand by Insulation Value 94
Residential Building 96
Materials 96
Applications 98
New Housing 99
Residential Improvements & Repairs 101
Nonresidential Building 103
Materials 104
Applications 105
Institutional 107
Office & Commercial 107
Industrial 107
Other 108
Industrial & HVAC Equipment 108
Materials 109
Applications 110
Industrial Equipment 111
HVAC Equipment 112
Other Insulation Markets 112
Materials 113
Applications 114
Appliances 116
Transportation Equipment 116
All Other Applications 116

VI. REGIONS 118

General 118
Regional Demographic & Economic Trends 120
Demographic Trends 121
Economic Trends 123
Building Construction Trends 124
Manufacturing Trends 125
Insulation Demand by Region 127
Central-North 129
Overview 129
Insulation Demand 131
Northeast 133
Overview 133
Insulation Demand 136
Central-East 137
Overview 137
Insulation Demand 139
Central-South 141
Overview 141
Insulation Demand 143
Southwest 145
Overview 145
Insulation Demand 147
Northwest 149
Overview 149
Insulation Demand 151

VII. INDUSTRY STRUCTURE 154

General 154
Industry Composition 155
Market Share 157
Manufacturing & Product Development 161
Marketing & Distribution 162
Cooperative Agreements 163
Company Profiles 166
Armacell International Holding GmbH 167
BASF SE 169
Bayer AG 173
BBMG Corporation 175
Beijing Aerated Concrete, see BBMG
Beijing Beipao Plastics Group Company 176
Beijing New Building Material plc 177
Beijing Star Building Materials, see BBMG
Chengdu HanJiang New Building Materials
Company Limited 179
CSR Limited 180
Dalian Rockwool Company Limited 181
Dow Chemical Company 183
Hebei Huamei Group 186
Hebei Renqiu Jinglian Group Company Limited 187
Huanan Building Materials Shenzhen Company Limited 188
Jiangyin TBO Industries Company Limited 189
Jinglian Thermal-insulation Material Factory, see Hebei
Renqiu Jinglian Group
Ningbo Firewheel Thermal Insulation & Sealing Company
Limited 190
Owens Corning 192
Saint-Gobain 194
Shandong Huaneng Thermal Insulation Materials Company
Limited 196
Shandong Longxin Building Materials Company Limited 197
Shandong Luyang Share Company Limited 198
Shandong Tengzhou Huahai Group 199
Shandong Yihecheng Commerce & Industry Group Company
Limited 200
Shandong Zhongneng Thermal Insulation and
Anti-corrosion Company Limited 202
Shanghai ABM Rock Wool, see Shanghai Building
Material Group General
Shanghai Building Material Group General Company 203
Shanghai Lianheng Isocyanate, see BASF
Sinoma Science & Technology Company Limited 204
Wuxi Mingjiang Insulation Material Company Limited 205
Xi’an Chang An New Insulation Material Company
Limited 206
Yantai Tonghua Waterproof and Insulation Engineering
Group Company Limited 207
Zhejiang Zhenshen Cold Insulation Technology Company
Limited 208



LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Gross Domestic Product of China 11
2 Population of China 13
3 Households in China by Region 16
4 Per Capita GDP in China by Region 19
5 Building Construction Expenditures in China 20
6 Residential Building Construction in China 22
7 Housing Stock in China 25
8 Nonresidential Building Construction Expenditures in China 28
9 Nonresidential Building Stock in China 31
10 Manufacturing Value Added in China 33
11 Average Insulation Prices in China 35
12 Foreign Trade of Insulation in China 40

SECTION III – OVERVIEW

1 Insulation R-Values by Material 46
2 Insulation Demand in China by Product Value 54

SECTION IV – PRODUCTS

1 Insulation Demand in China by Product Weight 57
2 Foamed Plastic Insulation Demand in China by Market 61
3 Foamed Plastic Insulation Demand in China by Resin 62
4 Rigid Urethane Foam Insulation Demand in China by Product 64
5 Rigid Urethane Foam Insulation Demand in China by Market 66
6 Polystyrene Insulation Demand in China by Product 68
7 Polystyrene Insulation Demand in China by Market 71
8 Other Foamed Plastic Insulation Demand in China 72
9 Mineral Wool Insulation Demand in China by Material 75
10 Mineral Wool Insulation Demand in China by Product Form 77
11 Mineral Wool Insulation Demand in China by Market 79
12 Fiberglass Insulation Demand in China by Product Form 82
13 Fiberglass Insulation Demand in China by Market 84
14 Other Insulation Demand in China by Material 88
15 Other Insulation Demand in China by Product Form 89
16 Other Insulation Demand in China by Market 90

SECTION V – MARKETS

1 Insulation Demand in China by Market Value 93
2 Insulation Demand in China by Insulation Value 95
3 Residential Building Market for Insulation in China
by Material 98
4 Residential Building Market for Insulation in China
by Application 99
5 New Housing Applications for Insulation in China 101
6 Residential Improvement & Replacement Applications
for Insulation in China 103
7 Nonresidential Building Market for Insulation in China
by Material 105
8 Nonresidential Building Market for Insulation in China
by Application & Type 106
9 Industrial & HVAC Market for Insulation in China
by Material 110
10 Industrial & HVAC Markets for Insulation in China
by Application 111
11 Other Insulation Markets in China by Material 114
12 Other Insulation Markets in China by Application 115

SECTION VI – REGIONS

1 Population of China by Region 122
2 Gross Domestic Product of China by Region 124
3 Building Construction Expenditures in China by Region 125
4 Manufacturing Value Added in China by Region 126
5 Insulation Demand in China by Region 128
6 Central-North Region of China: Insulation Demand 133
7 Northeast Region of China: Insulation Demand 137
8 Central-East Region of China: Insulation Demand 141
9 Central-South Region of China: Insulation Demand 145
10 Southwest Region of China: Insulation Demand 149
11 Northwest Region of China: Insulation Demand 153

SECTION VII -- INDUSTRY STRUCTURE

1 Revenue Data: Selected Insulation Companies, 2011 156
2 Selected Cooperative Agreements 164



LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT

1 Population of China, 2001-2021 14

SECTION III – OVERVIEW

1 Insulation Demand in China by Product Value, 2011 54

SECTION IV – PRODUCTS

1 Insulation Demand in China by Product Weight, 2011 58

SECTION V – MARKETS

1 Insulation Demand in China by Market Value, 2011 93
2 Insulation Demand in China by Insulation Value, 2011 95

SECTION VI – REGIONS

1 Insulation Demand in China by Region, 2011 129
2 Central-North Region of China 131
3 Northeast Region of China 135
4 Central-East Region of China 139
5 Central-South Region of China 143
6 Southwest Region of China 147
7 Northwest Region of China 151

SECTION VII -- INDUSTRY STRUCTURE

1 Insulation Market Share in China, 2011 157