Japanese nonwovens exporters eye the Chinese market for added value

The average value of nonwoven products exported to China by Japanese manufacturers in 2009 was almost double the average value of materials exported to the USA, according to a report by Textiles Intelligence.

Exports to the USA had a total value of ¥8,282 million (US$88.5 million), but those to China were more than double this amount, at ¥16,686 million, even though the volume of sales was lower.

Admittedly, unit weights and types of materials vary from one export market to another. Also, some markets have a greater proportion of higher value nylon nonwovens while others are made up predominantly of lower grade polyester and polypropylene products. But the overall message is clear -- the Chinese market is now providing the added value for Japanese producers which was formerly provided by markets in the USA, and to a lesser extent by those in Europe.

Chinese customers are demanding ever greater volumes of high performance nylon-based spunmelt nonwoven materials -- a speciality of Japan -- for a wide range of industrial end use applications.

By contrast, the USA imports mainly lower weight polypropylene-based and polyester based materials, primarily for the hygiene and healthcare sectors.

It is not surprising, therefore, that the exporting of value-added products to China now forms a key component of the strategies of most of the leading Japanese nonwovens manufacturers.

Furthermore, there is massive potential for growth. For example, the automotive products manufacturer Japan Vilene generated only 0.2% of its sales in China in 2009. This was despite the fact that China had become the world's largest car market by 2009, with sales up by 45% and production having reached 13.6 million units.

Asahi Kasei Fibers generated just 5% of its total sales in China in 2009/10. However, the company is aiming to increase this to at least 10% in the near future by exporting a number of key value-added brands.

Other Japanese companies looking to increase their share of sales in China include Kuraray and Toyobo.

All four of these companies have subsidiaries already set up in China and are well placed to increase sales in the country.

Moreover, China's market could be opened up even further to Japanese manufacturers if a trilateral free trade agreement between China, Japan and South Korea is completed, as planned, by 2012.