Aluminum processing industry: from quantity to quality to accelerate the transformation and upgrading

With the global emphasis on environmental protection and energy conservation, the demand for aluminum profiles in construction, automobiles, home appliances, electronics, and mechanical equipment is gradually expanding. Especially in the next few years, the demand for aluminum processing industry will continue to increase; at the same time, we should also see that the current my country The aluminum processing industry is facing problems such as gradual tightening of policies, declining profitability, and constant trade frictions. Accelerating transformation and upgrading has become the necessary path for the development of the aluminum processing industry.　　1. China's aluminum processing industry policies have gradually become stricter. In recent years, my country has strengthened the supply-side structural reform of the aluminum processing industry, promoted technological progress in the industry, and promoted the high-quality development of the aluminum smelting industry. In September 2018, the Ministry of Environmental Protection issued the 'Technical Policy for Pollution Prevention and Control in the Secondary Aluminum Industry (Draft for Comments)The new version of the 'Aluminum Industry Specification Conditions (Draft for Solicitation of Comments)' puts forward higher requirements in terms of industry energy conservation, environmental protection, and intelligent production, and the entry barriers for the aluminum processing industry continue to increase. 2. The profitability of China's aluminum processing industry declines from 2015 to 2019. Although the sales revenue of my country's aluminum processing industry has continued to increase year by year, the total profit has shown a sharp decline in the past two years. In 2019, the aluminum processing industry achieved sales revenue of 950.258 billion Yuan, a year-on-year increase of 6.40%; the total profit realized was 17.399 billion yuan, a year-on-year decrease of 31.50%. In terms of sales profit margins, my country's aluminum processing industry has also shown a downward trend year by year, from 6.31% in 2015 to 2.60% in 2019, a decrease of more than 130%. 3. Trade frictions in China’s aluminum processing industry have gradually become normal. As the competitiveness of my country’s aluminum processing products continues to increase, the export volume has gradually increased. As the second largest exporter of aluminum processing products, the United States began to implement trade protectionism against China in 2016 and frequently China's aluminum processed products are investigated and litigated. In 2016, 32 competition investigations were conducted on China's aluminum industry. In 2017, my country's aluminum foil was launched a double-reverse investigation. In 2019, Vietnam, Argentina, the Eurasian Economic Union, Ukraine, Mexico, Indonesia and other countries or regions have launched anti-dumping investigations on aluminum, aluminum products and aluminum-containing products exported from my country. Trade frictions in my country’s aluminum processing industry have gradually become normal. Increased the pressure and difficulty of China's aluminum exports. Fourth, from 'quantity' to 'quality' into the development direction of China's aluminum processing industry. Faced with my country's aluminum processing industry's stricter policies, declining profitability, and constant trade frictions, my country's aluminum processing industry should accelerate its transformation and upgrading. 'Quantity' is developing in the direction of 'Quality'. At the same time, aluminum processing enterprises should extend the industrial chain, achieve technology and equipment upgrades, increase the added value of the industrial chain, and develop in the direction of green manufacturing. Advantageous aluminum processing companies can speed up the global aluminum processing industry chain layout through mergers and acquisitions, etc., which can reduce losses caused by trade frictions on the one hand, and enhance international competitiveness on the other.　　 Hesheng shares have focused on the Ru0026D and production of industrial aluminum profile materials for many years, and has also been pursuing high-quality products supporting famous-brand products. With the continuous expansion of Hesheng Co., Ltd., it has achieved one-stop production, from smelting casting, mold manufacturing, extrusion molding, CNC deep processing, surface treatment, etc. Provide high-quality industrial aluminum profile parts for many internationally renowned brands. The fields involved are auto parts, new energy auto parts, consumer electronics, consumer durables and other aspects. The epidemic at the beginning of 2020 is even more challenging for my country’s aluminum processing industry. In the second half of 2020, the market may usher in a “lagging outbreak”, which is an opportunity for competitive companies, regardless of the subsequent industry trends. Only by moving from quantity to quality and speeding up the transformation and upgrading can we talk about development. Reprinted from: Hesheng shares
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