A few days ago, "Ceramic Information" learned from the Liaoning Faku Ceramics Association that thanks to favorable factors such as the price of industrial natural gas remaining unchanged since November and the continued high temperature, more than 30 households in the Faku Ceramics Industrial Park have built ceramics on the plan. Of the 55 completed lines of the company, more than 80% of the production lines are still operating at full capacity, and some companies have postponed seasonal production shutdowns until the end of December.
Spurred by this, the actual annual output of building ceramic tiles in Faku Ceramics Industrial Park this year is expected to reach 280 million square meters, the highest value in the past five years.
In a survey jointly initiated by the Liaoning Faku Ceramics Association and the Liaoning Faku Ceramics Entrepreneurs Association on Faku Ceramics Industrial Enterprises’ contracting of OEM and other OEM services, data showed that among the 280 million square meters of output , there are more than 50 million square meters of ceramic industry production for OEM business, with an output value of more than 1 billion yuan, accounting for nearly 20%.
The mid- to low-end OEM business accounts for a relatively large proportion
Chen Shuxian, president of Liaoning Faku Ceramics Association, said that the current OEM business in Faku Ceramics Industrial Park mainly includes the following types: First, OEM for first-tier brand companies in Foshan and other places. The production-oriented enterprises that rank high in the domestic building ceramics industry, due to their own insufficient production capacity, entrust Faku Ceramics Enterprises that can meet the needs of the enterprises for processing and production.
The second is OEM business. Most of this type of enterprises are trading enterprises. Since they do not have production capacity, they entrust enterprises in other regions to carry out order-based production according to market needs. This type of customers mostly come from Zibo, Linyi and other places in Shandong.
The third type of customer is the OEM business that targets the sales market in a specific region. For specific markets, in order to minimize logistics and transportation costs, we entrust local companies to carry out OEM business. "In our survey data, the proportion of mid-to-low-end OEM business in the total OEM business is relatively high, close to 70%, and the proportion of OEM business for first- and second-tier brands in Foshan is still low. But since this year, benefits have Due to favorable factors such as the stable environmental protection situation in Faku Ceramics Industrial Park and the substantial improvement in product quality in the park, the brand OEM business has increased by 300% year-on-year," said Chen Shuxian.
From a policy level, encourage OEMs for brand companies
Chen Huiku, president of Liaoning Faku Ceramics Entrepreneurs Association and general manager of Shenyang Jindiyang Ceramics, a subsidiary of New Zhongyuan Ceramics, said that due to the absolute overcapacity of mid- to low-end products, the consumer market continues to be sluggish, and this year Affected by the new coronavirus epidemic, most enterprises in the park are facing the problem of unbalanced production and sales ratio, and in order toTo maintain cost and price advantages, most companies must maximize unit labor output to reduce unit labor costs even if production and sales are unbalanced. Therefore, contracting a certain amount of OEM business can reduce production capacity to the greatest extent. Maintain price and cost advantages.
As for contracting the OEM business of brand enterprises, Chen Huiku believes that Foshan's first- and second-tier brand enterprises have higher threshold requirements for the selection of OEM enterprises. Therefore, in order to contract the brand OEM business to the greatest extent, they are bound to force Enterprises continue to carry out technological transformation and upgrading to adapt to the needs of the OEM business market. Especially when OEM for brand enterprises, it is also a process of improving the enterprise's own production capacity, R&D capabilities and brand.
Gu Chunxiang, deputy director of the Management Committee of Liaoning Faku Economic Development Zone, said that the development zone is currently studying and demonstrating the industrial development plan of the 14th Five-Year Plan, and will include OEM for brand enterprises into the industrial investment promotion policy in the future period. From the policy level Provide policy, funding, publicity and other comprehensive support to OEM activities for brand enterprises.
(The article is reproduced from Ceramic Information)
