Strong demand for automotive electronic sealed lead-acid battery outlook

In UPS, automotive electronics and communication equipment demand driven, Chinese, SLA battery manufacturers continue to expand the export market, forecast sales will grow.

In 2004, China produced about 60 million Kwh sealed lead acid (SLA) batteries, sales revenue reached $1 billion 210 million. 2005, China's SLA battery market is expected to grow by about 30%, while in 2004, due to the sharp increase in raw material prices, resulting in poor sales.

Demand is expected to grow rapidly in the next few years, manufacturers are actively preparing to expand production capacity. Quanzhou Fujian Dahua Battery Co., Ltd. General Manager Chen Hualong expects, UPS, automotive electronics, communications equipment is a hot market, the next 5 years, SLA battery market is expected to grow by 20-30%. Dahua Company in 2004 to build a new plant area of 30000 square meters, the new plant is expected to increase the company's annual production capacity of 25%.

In 2005, Quanzhou sang Sen Battery Co., Ltd. will increase its annual production capacity from 300000 Kwh to 3000000Kwh, the company aims at annual sales revenue of $19 million target. Ma Guangxin, vice president of the company, estimates that more than 50% of mainland Chinese manufacturers export SLA UPS batteries, with only about 10% of all exports of SLA batteries.

Zhongshan Ruili Battery Co Ltd (Zhongshan Rely Battery Co. Ltd) recently installed in a production line, the monthly production capacity expansion from 50000 KVAh to 70000 KVAh. Once demand growth, the company plans to open full capacity.

Currently, the global automotive market is monopolized by foreign SLA battery manufacturers. However, strong demand in this area attracts more and more Chinese manufacturers to join. Another emerging application area is electric vehicles, Shamas's Ma revealed that the company's 70% R & D budget in the field of electric vehicle SLA batteries. In 2005, the company plans to introduce more SLA batteries for electric vehicles. At the same time, Ningbo leopard King Battery Co., Ltd. is also working with Fudan University to develop SLA batteries for electric vehicles.