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Five investment hot spots in building materials industry

11 November 2002

Industry insiders have pinpointed five hot spots of investment in the Chinese building materials industry.

Decorative wood. Currently, forest coverage is only 14 percent in China, much lower than the world average level of 25 percent. To protect forest resources and ecological environment, China has banned logging in some areas. Development of wood-saving decorative materials has thus become a target.

Outer-wall materials. It has become a trend in China to use hard materials to decorate exterior walls, which account for more than 85 percent. Soft materials only account for about 15 percent. Such an imbalance will be the priority of improvement in the future.

Window and door materials. Reinforced plastics has demonstrated greater advantages than other materials in terms of energy consumption in production and utilization, and its outstanding performances against corrosion and heat.

Piping materials. Composite pipe is a product to replace the traditional galvanized pipe, and also a new generation of piping material in the world, featuring stainlessness, non-scaling, and no harm to human beings. At present, the use of steel and aluminum alloy composite pipes is still at a low level in China, indicating a broad market prospect.

Filling materials. Polyurethane foam filler is an imported high-tech chemical building material in China, which is suitable for insulation, filling, sticking and fixing in various kinds of buildings. It is also an environment-friendly building material featuring water and fire proof, and toxic and freon free. It is surely to replace traditional filling materials such as cement, mortar and mineral wool.

Facing these potential markets, China has launched 20 technological transformation projects in the building materials industry, including 12 cement works, four glass fiber direct melt furnace projects, reinforced plastics window and door and hardware project, one sanitary ceramics project, one plate glass technical upgrading project, and one TFT glass project. The projects cost an estimated 4.29 billion yuan.





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