Closing factories, shutting down, closing down! Small and medium chemical companies can't live anymore

"Global Coatings Network News"

In terms of quantity, most Chinese enterprises should belong to small and medium-sized enterprises, and the same is true for the chemical industry.

As far as a single plant is concerned, this group of small and medium-sized chemical manufacturers cannot contribute a few drops of GDP, but the difficulty of supervision is not low, and the government also understands that our economy cannot be separated from the chemical industry.

If they leave the chemical industry, the local government's GDP and tax will cause big troubles, so they scramble to compete for tall chemical companies, such as central enterprises and large state-owned enterprises, especially large listed companies.

If your current sales are less than a few hundred million, you should not get a good look from government officials.

High capital use cost, weak product competitiveness

An enterprise with an output value of less than 100 million yuan is unlikely to use normal interest loans from banks.

If it is a listed company, a state-owned enterprise or a central enterprise, it will not be too difficult to obtain a loan from a bank, and even enjoy preferential interest rates.
The difference in the cost of capital use directly affects the competitiveness of those price-matching products.

Local policies make it difficult for small companies to grow bigger

At present, the investment promotion policies issued by governments at all levels, especially those in developed regions, are aimed at being tall.
For example, Suzhou City requires that the investment starting point for new projects is not less than 200 million, and the investment intensity is not less than 5 million per mu.
To make it clear is to prevent you from starting from a young age.

Such a policy should not be conducive to the research and development of new products.
That is to say, if you develop a new product and want to build a factory on your own, you should save the province.
It is possible to draw a listed company or a large company to use technology to build a factory.
To be more realistic.

In the next few years, you will see a frightening reshuffle, industry concentration and product market concentration will soar rapidly, and a large number of small and medium-sized enterprises will be annexed or directly closed down!