Since 2006, China has issued a dozen of laws & regulations and policies on promoting new building materials. As a kind of ideal material to construct green building, the gypsum board can not only maximize housing functions to meet the specific needs for living and working, but also go with the tide of developing green economy. In 2003-2012, China’s gypsum board output soared from 173 million sq meters to 2.121 billion sq meters, with the CAGR of 28.48%.
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The floor space of buildings completed determines the demand for gypsum boards in a direct way. In 2012, the floor space of buildings completed nationwide saw a steep decline year-on-year, leading to the nationwide growth in demand for gypsum boards dropping by roughly 12% year-on-year to 2.5 billion sq meters. As a result, the gypsum board output growth rate was on a year-on-year dive by 14.37%. It is estimated that China’s demand for gypsum boards will keep up with the growth by around 10%-15% with the synergy of increasing urbanization rate and market penetration rate as well as house remolding.
In the gypsum board market of China, Beijing New Building Material (Group) holds precedence under the severe competition circumstances. And no other domestic counterparts featuring small production scale but foreign industrial players including Germany-based Knauf, Australia-based Boral and France-based Saint-Gobain, are in the position to compete with Beijing New Building Material (Group). In 2012, the gypsum board output of Beijing New Building Material (Group) hit 1.044 billion sq meters, accounting for 49.2% of China’s total. In particular, the company’s “dragon” gypsum board products are oriented to high-end product market with the market occupancy surpassing 50%, while its “Taishan” gypsum board products are targeted at low- and medium-end markets. With the advantages in scale and product line, the “Taishan” gypsum board products are more competitive in the market.
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