Analysis on the production cost ratio and environmental protection policies of various materials in China's medical gloves industry in 2018

- Apr 22, 2019-

1. equipment automation increases line speed and reduces costs of coal, electricity and labor

Economies of scale and equipment automation will speed up the recovery of cash flow, and private capital investment will further improve equipment automation and promote a virtuous cycle.Generally, the recovery period of the production line of medical glove enterprises is about 15 months. With the working capital cycle, a production line can be re-invested in about 17-19 months.Therefore, for enterprises, it is the core of the business model of glove industry to help improve production efficiency through research and development, realize the technological progress of production line, accelerate the profit accumulation and then invest in new production line, and open the gap with competitors.Because of the relative homogeneity of products, the most core part that determines the success or failure of the enterprise competition is cost, and it is the production line efficiency that determines the enterprise cost. The premise of realizing the production line efficiency is to continuously improve the advanced level of the company's equipment.Disposable glove processing equipment is not standardized equipment, but each enterprise designed according to the product positioning, including equipment integration, automatic control design, supporting facilities construction and engineering construction.Therefore, in the development of the industry, a good equipment integration capability will improve the production efficiency and reduce the cost of coal, electricity and labor on the premise of guaranteeing the yield rate.

2. Reduce the weight of grams to effectively reduce the cost of raw materials

Reducing the weight of gloves can effectively reduce the production cost of gloves.According to the public data, PVC paste resin and plasticizer account for half of the production cost of PVC gloves, and nitrile latex (butadiene) accounts for 47% of the production cost of nitrile gloves. The raw material cost of the two accounts for a large proportion, so the unit weight of gloves has a great impact on the production cost.In addition to increasing the line speed and reducing the cost, another important way is to reduce the unit glove weight.Hector, the world's leading nitrile glove manufacturer, has reduced its nitrile medical gloves from 4.7 grams in 2013 to 2.7 grams, a 42.6 percent drop over four years.

3. Environmental protection policies should be tightened to accelerate the withdrawal of backward production capacity from the market

Environmental protection policy is tightened, backward production capacity is accelerated to exit the market, and enterprises with VOC smoke recovery and treatment technology and sewage treatment technology will eventually benefit.With the serious air pollution in our country, the national environmental protection policy is increasingly intensified.Last year, the ministry of environmental protection, the national development and reform commission, the ministry of finance, the state administration of energy and the people's governments of Beijing, tianjin and hebei jointly issued the "work plan on air pollution prevention and control in the beijing-tianjin-hebei region and surrounding areas in 2017" (hereinafter referred to as the "work plan").It is clear from the work plan that, with the improvement of regional environmental air quality as the core and the reduction of heavy pollution weather as the priority, multiple measures will be taken to strengthen the prevention and control of atmospheric pollution in winter and comprehensively reduce regional pollution discharge load.In this context, environmental protection standards of small and medium-sized enterprises have been shut down.According to our preliminary understanding, at least 30% of the national PVC market capacity will be withdrawn in 2017.At the same time, yingke medical production capacity rose against the trend, from the side of its environmental protection in line with national regulations.

JB-SH 棉里涂胶手套生产线4