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Raw materials "skyrocketing" small and medium-sized coating enterprises are facing the risk of liquidation

raw materials "skyrocketing" small and medium-sized coating enterprises are facing the risk of liquidation

June 8, 2017

Lillian can well help customers

[China paint information]

since 2016, the price of domestic coating raw materials has continued to rise, bringing about the continuous increase in the cost of coating enterprises. It is understood that the maximum increase of butadiene price is more than 200%, and the maximum increase of TDI is 400%; The highest increase rate of acrylic acid is about 110%, and the price of domestic titanium dioxide products has increased by about 70%. With the continuous rise of raw material prices, the operating costs of coating enterprises are also increasing, seriously compressing the profit space of coating enterprises

in addition, since the implementation of the strictest environmental protection law, domestic coating enterprises have faced great environmental protection pressure. The intensity of environmental protection supervision has been higher than one round. Coating enterprises need to spend a lot of money to purchase environmental protection equipment, which further increases the operating costs of enterprises. To sum up, coating enterprises are naturally forced to develop in a more refined direction. For example, Luoyang LecA powder coating Co., Ltd. strictly controls the cash flow of such good conditions now, and screens out users who are small in scale and do not receive payment in time. This can effectively control the cash flow of the enterprise on the one hand, and control trade risks on the other hand

small and medium-sized coating enterprises may be "liquidated" at any time.

in the whole coating industry, not many enterprises have really installed environmental protection equipment and reached the emission standard. Since the environmental protection supervision, there have been "countless" enterprises investigated and dealt with. For example, the Ministry of environmental protection recently announced the results of the 2+26 inspection in the Beijing Tianjin Hebei region. More than 14200 enterprises were inspected in the 2+26 cities of Beijing Tianjin Hebei, and more than 9700 enterprises with environmental problems were found, accounting for nearly 69%. Among them, the number of "messy and dirty" enterprises is amazing. Tian Weiyong, director of the Environmental Supervision Bureau of the Ministry of environmental protection, said that through this strengthened supervision, it is necessary to check the "dead corner" of pollution and find out the bottom line. "Scattered pollution is still in the stage of local inventory, ordered shutdown and rectification, and actively meet the growing safety needs. If this enterprise still cannot complete the transformation and meet the emission standards at that time, it must be strictly banned in accordance with the Beijing Tianjin Hebei air pollution control strengthening plan."

most of the enterprises in the domestic coating industry are small and medium-sized enterprises, and these enterprises have the problem of "scattered pollution" more or less. Of course, furniture, household appliances and other industries also have similar problems. In the face of such a severe environmental protection situation, these small and medium-sized enterprises will face the danger of shutdown and seizure at any time

there is a great trade risk for their upstream supplier coating enterprises in vehicle manufacturing, power engineering, metal materials and other industries. This is also why many coating enterprises prefer to make less money, but also have to recover their funds first. Control the operation risk of the enterprise to the minimum. It is not difficult to understand why large paint enterprises have recently prepared for IPO Financing, which shows that the cash flow of enterprises is not very abundant and the demand for funds is unprecedented

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