The magnesium oxide industry develops rapidly. Because of the excess production capacity, cutting capacity has already been the top priority. For the past ten years, with the rapidly development of domestic magnesium oxide, there is a disconnection between the overquick growth and growing rate of GDP. It leads to form the over capacity. Therefore, some of magnesium oxide supplier invest irrationally. It also brings to wasting of resources and very low efficiency. In the course of 13th Five Year Plan, cutting capacity is the top priority in magnesium oxide industry. The overcapacity ratio, which is need to be weed out, is initially identified from 10% to 15%. The target of this industry’s growth is 6.5%.
Compared with steel, cleaning up some over capacity is the magnesium oxide industry’s main objective for supply-side structural reform. Except for weeding out some parts of capacity, magnesium oxide industry pays more attention to improving product quality and production efficiency. Therefore, during cutting capacity, integration, recombine and cooperation will become the key.
The magnesium oxide manufacturer, which is focus on producing magnesium salt products, need to strengthen technological innovation, accelerate the transition towards modern new development model. It should take the principle of “ Action first, be quick in action and storm fortifications together”. What’s more, in order to promote the magnesium oxide products, it should confront problems, solve it and realize the goal.