The Ministry of Industry and Information Technology shot the "horse reins" LCD panel to step on the brakes
Faced with a severe excess of flat glass production capacity, the Ministry of Industry and Information Technology finally began to strike a "horse reins", and this also put the emergency brake on the LCD panel project that is constantly being launched.
Last week, the Ministry of Industry and Information Technology officially issued the "Opinions on Restricting Overcapacity and Repeated Construction to Guide the Healthy Development of the Flat Glass Industry" (hereinafter referred to as "Opinions"), strict market access, and halted construction and expansion projects.
Over the past year, TCL, BOE and other companies have invested heavily in LCD panel projects. Samsung, LG, HP, Chimei and other companies have also stepped up their deployments in the mainland. A total of 7 LCD production lines have settled in China. This is only an investment in LCD panels, and does not include previous domestic companies' investment in other types of flat glass.
The Ministry of Industry and Information Technology pointed out that in recent years, China's flat glass industry has developed rapidly. In 2008, the total production capacity reached 650 million heavy cases, and the total output of flat glass was 574 million heavy cases, accounting for about 50% of the world total glass output.
However, due to the impact of the international financial crisis, the flat glass industry, which had already had a serious excess capacity, was on the verge of loss in 2008. In the first half of this year, the industry lost more than 400 million yuan. Although the first three quarters have turned losses into profits, the situation is still very grim.
The most prominent problems in the development of the industry are repeated construction and overcapacity still intensifying. For example, there are more than 30 production lines under construction and planned, with a production capacity of 120 million heavy boxes. Secondly, the industrial structure is unreasonable, ordinary float flat glass is seriously in excess of demand, and high-end varieties such as flat panel displays and photovoltaic power generation still need to be imported. The deep processing rate of domestic glass is less than 30%, which is lower than the world average of 55%.
In addition, the industrial concentration is too low. The total production capacity of the top five glass groups in China only accounts for about 30% of the country. The top four international glass groups in the world have more than 65% of the world's production capacity (excluding China).
In addition to strict market access, the construction of illegal and illegal projects that do not meet the "access conditions for the flat glass industry" will be stopped. All localities will also conduct a comprehensive clean-up of existing projects under construction and unopened projects. ) New capacity expansion construction projects.
At the same time, the Ministry of Industry and Information Technology pointed out that it will encourage large enterprises to carry out mergers and acquisitions, and support advantageous enterprises in project approval, land approval, credit grant, tax relief, etc., encourage enterprises to build new lines less, mergers and acquisitions more, and strive for the next three years before The industrial concentration of 10 large flat glass manufacturers reached more than 70%.
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