Extrusion International USA 2-2020

11 Extrusion International 2/2020 The Chinese industries have been normalizing opera- tions as the spread of the coronavirus was slowing down. Indeed, the plastics industry, among others, has to stay positive and prepare for the expected market rebound af- ter the epidemic. As the leading industry trade show CHINAPLAS was con- firmed to be rescheduled to early August, many of the ex- hibitors are already planning to strengthen their presence at the upcoming show. The official media of CHINAPLAS, CPRJ, has recently released the news about the resump- tion of operations and some exhibitors’ responses: Most provinces across China have returned to work af- ter an extended holiday. The National Development and Reform Commission stated that in some major economic provinces such as Guangdong, Jiangsu, and Shanghai, the resumption rate of industrial enterprises above designat- ed size exceeded 50%. Large enterprises are relatively quick to resume work and production compared with small and medium-sized en- terprises. Upstream industries and technology-intensive enterprises are faster than downstream industries and labor-intensive enterprises. Meanwhile, governments at all levels have promulgat- ed a number of policies to proactively coordinating the resumption of production and work of enterprises, en- suring the stable economic development. For instance, Beijing has introduced comprehensive financial support measures, Shanghai has set up tax reduction and exemp- tion targets, and Guangzhou has also launched work and production resumption policies. VDMA: The iconic CHINAPLAS 2020 to provide a positive impulse for the market China is one of the largest export markets for the Ger- man plastics processing machinery industries. Therefore, the VDMA Plastics and Rubber Machinery Association has been keeping close eye on the latest developments relat- ed to the coronavirus outbreak. The Plastics Industry paving the Way for Rebound According to the German industry association, no mem- ber company maintains production facilities in the partic- ularly affected Hubei region, and also no member has yet reported a coronavirus inflected case. Regarding when the market will return to normal, Thor- sten Kühmann, Managing Director, commented that many member companies expect the situation to slowly level off again in March, and the outbreak “does not change the fundamental importance of the Chinese mar- ket for our industry in the future”. VDMA Plastics and Rubber Machinery Association is one of the co-organizers of the CHINAPLAS 2020 concurrent event “Industry 4.0 Factory of the Future”. Thorsten Kühmann believes the iconic industry trade fair “can certainly provide a positive impulse” especially when the Chinese economy is weakening as a result of the coro- navirus outbreak. VDMA Plastics and Rubber Machinery Association said the coronavirus outbreak has not yet led to significant deliv- ery problems in the German mechanical engineering in- dustry. However, due to the long throughput times in mechanical engineering, it is possible that “these difficulties will only really become apparent in the coming weeks”. Apart from slower production from many suppliers in oth- er industries, the mechanical engineering companies are also facing the challenges of logistics restrictions. At present, companies in Germany can still compensate for these difficulties by switching to other production locations or suppliers, but Thorsten Kühmann remarked that “the situation must be reassessed from week to week”. (Source: CPRJ) CHINAPLAS is re-scheduled to August 3-6, 2020 to be held in Shanghai, PR China. Focusing on “Smart Manu- facturing”, “Innovative Materials”, and “Green & Circu- lar Solutions”, the organizer is expect to present 340,000 square meters of exhibition space, bring together 3,800+ renowned global exhibitors. Visitor pre-registration is opened and those who pre-register on and before May 22, 2020 will receive a visitor badge by mail in advance. Adsale Exhibition Services Limited www.ChinaplasOnline.com Thorsten Kühmann, Managing Director, VDMA Plastics and Rubber Machinery Association