Many Silicone Rubber Companies ‘step On Thunder’

According to news from the real estate media, the growth rate of real estate investment in the first quarter is declining, which shows from the side that the current developer's funding is tight and the willingness to continue investing has decreased. In the first half of 2021, due to the difficulty of capital turnover of individual large real estate developers, the bills and payment receivables of many brand silicone rubber companies in East and South China were overdue, which accounted for a relatively large proportion. The general manager of a certain brand of silicone rubber enterprise in East China stated that: in the first half of the year, payments have been collected, especially for historical projects. The production of the company has declined, and the purchase of raw materials such as 107 rubber has dropped by about 35% this year.

For future development, many large-scale silicone rubber companies believe that due to the epidemic and policies, the trend of mergers and acquisitions in the domestic silicone rubber industry will intensify. The leading silicone rubber companies have begun to build market barriers in vertical fields through mergers and acquisitions. This is to consolidate market share and expand business territory.

The general manager of a listed silicone rubber company in South China said that we are serious about doing everything we do. Focusing on deepening the supply-side structural reforms, insisting on quality first and benefit first, practically transform the development mode, promote the "triple reform" of quality, efficiency, and power, and seize the great opportunity of the new development pattern of the country's "double cycle". Integrate the resources of the silicone rubber industry, do a good job in the economic and technological division of labor, create a well-ordered competition, and avoid repeated plant construction, disorderly competition and internal friction. Through precise positioning of the target market, strengthening and expanding the field of expertise, give full play to the advantages of the industry and the respective brand advantages of Jingjian. At the same time, we must return to the product itself and be guided by customer needs to produce high-quality silicone products that the people are satisfied with, thereby opening up a larger market.