Pure tin electroplating market demand to rebound after Q3
----Interview with Zhang Jinxiang General Manager Kunshan Xintongding Metal Materials Co., Ltd.
Founded in 2006 and affiliated with Tongding Group, Kunshan Xintongding Metal Materials Co., Ltd. specializes in production and sales of tin anode, including different specifications of solder ball, tin sheet, tin bar, customized products and tin chemicals, such as tin sulfate, methane sulfonic acid, tin methanesulfonate, tin chloride, and sodium stannate.
Asian Metal: Mr. Zhang, thank you for accepting our interview. Firstly, please give a brief introduction of your company.
Mr. Zhang: Tongding Group is the largest electroplating tin anode producer in China with customers throughout the country.
Founded in 2006 and affiliated with Tongding Group, Kunshan Xintongding Metal Materials Co., Ltd. specializes in production and sales of tin anode, including different specifications of solder ball, tin sheet, tin bar, customized products and tin chemicals, such as tin sulfate, methane sulfonic acid, tin methanesulfonate, tin chloride, and sodium stannate.
Asian Metal: Please tell us something about your major customers and their distribution.
Mr. Zhang: Our customers are mostly from pure tin electroplating industry, such as tin plating (including sulfate acid and methane sulfonic acid tin plating) of semiconductor, IC packaging, terminal connector & LED support, LCD, PCB and hardware electronic component. We mainly sell our products in East China and target Chinese and global electroplating markets.
Asian Metal: What impacts does COVID-19 make on pure tin electroplating industry and your company?
Mr. Zhang: Some downstream customers failed to restart operation timely due to local prevention and control policies and the difficulty faced by some employees in returning to work timely after the outbreak of the pandemic, so our orders declined. Besides, orders from downstream customers were unstable as prices for major raw material tin metal fluctuated significantly, especially some small-scaled electroplating plants, which had low desire for purchase and took a strong wait-and-see attitude.
Asian Metal: What do you do to avoid risks?
Mr. Zhang: We decided to invest in transformation of technological equipment to eliminate influences of the pandemic by improving production automation as much as possible and worked out high-purity solder ball produced by special process after two-year research efforts. With the abilities in lowering the cost by 10% and improving anode effect during electroplating process, the product is quite popular among customers. Now we are applying for a patent. Supported by the world-leading product, we are superior to others. In spite of COVID-19 impacts, our performance goes far beyond the same period of last year.
Asian Metal: What negative impacts does COVID-19 bring to pure tin electroplating industry? What opportunities can we take advantage of?
Mr. Zhang: For pure tin electroplating industry, the greatest impacts are made on orders and talents. Employees and customers are of great importance to enterprises. Affected by the pandemic, the whole industry sees weak demand and decreasing orders. In addition, research and strategy implementation are short of essential talents due to difficulties in hiring new employees. Electronics industry, our end user, has difficulties in concluding export deals. A large number of overseas consumers cut consumption after the outbreak of COVID-19 outside China, which greatly influences orders and production enthusiasm of many Chinese electronics producers and indirectly impacts the production of electroplating industry. Against this background, we take this opportunity to develop and test new products and produce new materials at a small scale in order to meet the upcoming strong demand. If an enterprise owns talents, technologies and high-quality products, it will be invincible in competition.
Asian Metal: When the impacts of COVID-19 will come to an end? What is the estimated production value of your company in 2020?
Mr. Zhang: The pandemic basically came to an end in China at the end of May, but export orders are insufficient at present as the pandemic continues outside China. The market is expected to change significantly after Q3 when the global pandemic situation would improve and consumption of end users would increase. We have been developing and producing new product technologies in the first two quarters in order to face new challenges proactively in the future. Preparations may facilitate us to march forward at a faster speed. Driven by new products, our production value in 2020 would rise significantly compared to last year.
Asian Metal: Could you let us know your plan for the coming three years?
Mr. Zhang: Following the set policies and adhering to the "harmonious, tender, professional and innovative" ideas, we will try to take over 60% of pure tin electroplating market shares in the next three years, especially in tin plating of semiconductor, IC packaging, terminal connector & LED support, LCD and hardware electronic component.
Asian Metal: What are the future new growth points of electroplating in your opinions?
Mr. Zhang: As China vigorously supports 5G communication, semiconductor, automobile and other industries, pure tin electroplating industry has a bright future. Supported by state policies and driven by the idea of industry integration, we will march forward steadily and practically to a new climax of pure tin electroplating industry.
Asian Metal: Thanks for your wonderful comments. Wish your company to make more achievements and progresses under your leadership.
