On July 2, 2018, SDGC Ceramics Technology Group, a leading manufacturer of electronic ceramic dielectric materials and structural ceramics in China: nanocomposite zirconia and alumina, issued an announcement:
In order to meet market demand, SDGC plans to expand the current 7000 tons of MLCC ceramic powder material production capacity to 10,000 tons by the end of August.
SDGC's high-end MLCC ceramic powder series products have successfully achieved import substitution, while exporting to the international high-end market.
SDGC is a leading company in China's MLCC ceramic powder materials. After successful import substitution, the market share has reached 80% to 90%. The main manufacturers of Chinese MLCC products are Fenghua Hi-Tech (000636.SZ), Shenzhen Yuyang, Chaozhou Sanhuan, and National Giant Company in Taiwan and Samsung Electric in South Korea are all customers of the company.
In addition to MLCC electronic ceramic products, SDGC has achieved resource integration through asset reorganization, mergers, acquisitions, and other extensions in recent years, and has now formed five business segments of electronic ceramics, structural ceramics, architectural ceramics, electronic pastes, and catalytic materials. In 2017, the company's electronic ceramic products accounted for about 25% of revenue.
Driven by the rapid growth of various businesses including electronic ceramics, Guoci Materials achieved operating revenue of 1.218 billion in 2017, an increase of 78.09% year-on-year; net profit of 245 million, an increase of 87.75% year-on-year. In the first quarter of 2018, the company achieved revenue of 323 million and net profit of 75.33 million, up 53.72% and 69.70% year-on-year.
The MLCC market has been in a tight supply situation since the second half of 2017 due to the gradual withdrawal of Japanese ceramic material manufacturers, but the new capacity in Taiwan and the mainland failed to be released in time, and the surge in market demand. MLCC manufacturers such as Yageo and Fenghua Hi-Tech have experienced several rounds of price increases.
The president of Murata China, a leading global MLCC manufacturer, had previously stated in an interview that MLCC's stock shortage is expected to ease until the end of 2018 because supply cannot meet demand.
According to a report by the Financial Associated Press at the end of June, Murata, a leading global MLCC manufacturer, has negotiated price increases with clients and requested a price increase of 20% to 30%, while another Japanese major Taiyo Yuden has a target price. Synchronously increase.