Taiwan's Shinkong Synthetic Fibers Corporation (SSFC) has made significant inroads into China's electric vehicle market with materials such as elastomers and automotive films. Despite the severe involution in China's EV sector, the company remains optimistic about its shipment prospects for the second half of 2024 and beyond.
SSFC General Manager Chin-da Ou stated that the company has achieved substantial growth in 2023 and 2024 due to the accelerated development of China's EV market. Ou expressed optimism about 2025, citing numerous ongoing projects.
The severe competition within China's automotive market has led many automakers to face cost pressures, prompting them to seek cost-effective material solutions. This shift from traditional reliance on large European and American suppliers and Tier-1 providers has created new opportunities for SSFC. The company's strategic advantage lies in its localized supply chain, utilizing domestic raw materials and production facilities to effectively penetrate the Chinese market, according to Ou.
Moreover, Ou continued, the lengthy validation process for automotive materials ensures that once customers enter the certification stage, they are unlikely to switch suppliers, contributing to SSFC's long-term order visibility. The growing trend toward digital instrumentation and larger in-car displays continues to drive demand for SSFC's automotive films.
While SSFC's Yangzhou plant has observed a temporary slowdown in the broader Chinese automotive market, the company's focus on niche raw materials with limited competition has mitigated the impact. Although the outlook for 2025 remains uncertain, SSFC's strategic positioning ensures its continued growth potential.
In line with its diversified development strategy, SSFC continues to invest in sustainable and environmentally friendly materials and technologies. The company recently announced a US$10 million investment in Ambercycle, a US-based advanced materials science company, to build the first advanced plant capable of achieving closed-loop recycling of waste textiles, further strengthening partnerships across the supply chain.
