Where does the competitive advantage of fiberglass lie?
In the overall development of the fiberglass industry, the era of comprehensive growth has long passed, and structural differentiation has become the core theme. The production capacity of ordinary building fiberglass, conventional reinforcing roving, and low-end electronic fabric continues to expand, resulting in high market inventory, weak bargaining power, and a long-term situation of overcapacity and compressed profits.
In contrast, in the high-end sector, products such as wind power high-modulus yarn, low-dielectric electronic fabric, special thin felt, and thermoplastic fiberglass, supported by downstream demand from new energy, artificial intelligence, energy storage, and high-end corrosion protection, have high technological barriers and scarce production capacity. They not only boast significantly higher gross margins but also consistently experience supply shortages and order backlogs. Leading companies, leveraging their technological accumulation, production scale, and R&D advantages, have already completed product upgrades, and their development paths have diverged significantly.
China Jushi, as the global leader in fiberglass production, maintains the largest overall production capacity in the industry. Its product portfolio is centered on fiberglass roving and electronic fabric, with a balanced business structure and a well-established global presence. In terms of basic product categories, the company retains some general-purpose E-grade fiberglass roving, mainly used in traditional fields such as building materials, ordinary pipes, and low-end composite materials. This part belongs to an oversupplied sector and is only used as a basic production capacity component.
In the high-end sector, Jushi has achieved significant results. High-modulus fiberglass for wind power, thermoplastic-reinforced fiberglass, fluorine-free environmentally friendly specialty yarns, and high-end electronic-grade fabrics have gradually become core revenue pillars. Among them, E9 and E11 high-modulus yarns, which are adapted to the trend of large-scale wind power, and mid-to-high-end electronic cloths adapted to the PCB industry chain, maintain a leading market share. Overall, Jushi's high-end, high-value-added products account for 80% of its business, while low-end conventional products have been reduced to about 20%. Based on large-scale production capacity, the company is steadily transforming towards high-end and green products.
Taishan Fiberglass, a subsidiary of Sinoma Science & Technology, is a benchmark enterprise in the domestic specialty fiberglass field. Its business layout differs from a single fiberglass main line, forming a diversified and synergistic pattern of fiberglass, wind turbine blades, and lithium battery separators, making it more resilient to economic cycles. Fiberglass is one of its core business segments, with a focus on the high-end specialty electronic fabric market.
The company's core strengths lie in high-end electronic materials such as Low-Dk low-dielectric fabric, Low-CTE low-expansion fabric, and Q-fiber fabric, widely used in popular sectors like AI servers, high-end communications, and high-frequency, high-speed circuit boards. These products have extremely high technological barriers, a vast domestic market for substitution, and are currently in high demand within the industry. Sinoma also has a well-developed presence in industrial reinforcement and new energy-related fiberglass sectors, with stable shipments of wind power yarn and corrosion-resistant specialty yarn. Overall, high-end products account for approximately 65%-70% of Sinoma's fiberglass business, while low-end general-purpose products and conventional rovings account for 30%-35%, leveraging the strong competitiveness of its specialty electronic fabrics to pursue a differentiated development path.
Combining the strategies of these two leading companies with the overall industry situation, the structural contradictions within the entire fiberglass industry become clearly apparent. Currently, 40%-50% of the low-end production capacity in the fiberglass industry is in a state of oversupply, concentrated in categories such as ordinary roving, standard architectural fiberglass, and low-end electronic fabrics. These products have low entry barriers and severe homogenization, relying solely on low prices to seize market share, leading to intense competition within the industry.
Meanwhile, the high-end production capacity, which accounts for only 20%-30% of the industry, has long been in short supply. Whether it's fiberglass for new energy sources like wind power and photovoltaics, or products like high-frequency and high-speed electronic fabrics, aerospace-grade specialty fiberglass, and functional fiberglass mats, there is a supply-demand gap. Leading companies continue to increase investment in high-end production capacity, while small and medium-sized enterprises, limited by technology and capital, can only flock to low-end sectors, further exacerbating the industry's polarization.
In the long run, the oversupply of low-end production capacity in the fiberglass industry is unlikely to reverse in the short term. Tightening environmental policies and upgrading downstream demand will continue to accelerate the elimination of outdated production capacity. Meanwhile, high-end specialty fiberglass, as a core direction for domestic substitution, coupled with the continued empowerment of new energy and the digital economy, has ample room for growth.
