XiaoTong Column · 2025-07-09

Risk Compass”Low-temperature-resistant plastic parts in China”

1. Industry Risk Analysis

(1) Policy Risk

The vague standards during the policy – making period lead to uncertainty in the R & D direction. If the resources invested do not match the formal standards, it will increase the sunk cost of technology. During the implementation period, environmental protection supervision becomes stricter. Small and medium – sized enterprises face a sharp increase in costs and limited production capacity during compliance rectifications such as VOCs emission control and the use of recycled materials. During the evaluation and adjustment period, the upgrading of “plastic restriction” or international green trade barriers may force domestic policies to be tightened, which will impact the stability of the supply chain. Export – oriented enterprises face the risk of a sudden drop in orders.

(2) Economic Risk

The low – temperature – resistant plastic parts industry currently faces the risk of unstable demand caused by economic cycle fluctuations. During the economic expansion period, increased investment in downstream industries such as new energy and cold – chain logistics drives the growth of orders. However, in the over – heated stage, the prices of raw materials (such as special resins) may rise rapidly, squeezing profit margins. When the economy enters the contraction period, the slowdown in infrastructure and industrial equipment investment will directly lead to customers cutting their procurement plans. In particular, the polar equipment market, which relies on bulk commodity transportation, is significantly affected by fluctuations in global trade volume. The over – capacity formed by some enterprises through blind expansion during the prosperous period will intensify price competition when demand declines. Coupled with the prolonged accounts receivable cycle caused by the tightening of the credit cycle, it is very likely to cause the cash flow of small and medium – sized enterprises to break.

(3) Social Risk

Generational consumption differences drive the stratification of demand. The younger generation pays more attention to environmentally friendly materials and intelligent functions, while traditional enterprises still focus on optimizing basic performance, resulting in a mismatch between product iteration and market demand. The strong demand of Generation Z for the transparency of sustainable supply chains forces the industry to reshape production standards. If small and medium – sized manufacturers cannot quickly adapt to the green certification system, they will face customer loss. The intensification of the aging population makes cold – resistant scenarios shift towards the medical field and other areas. However, the lag in technology transformation may trap emerging enterprises in a dilemma of high investment and slow return.

(4) Legal Risk

Entrepreneurs need to pay attention to legal risks such as environmental protection regulations (e.g., REACH’s control of chemical substances), product safety certification (e.g., low – temperature performance must meet the standards of the automotive or electronics industry), intellectual property infringement (disputes over material formulas or process patents), supply chain compliance (review of the environmental protection qualifications of raw material suppliers), and export control (restrictions on cross – border trade of special materials if involved). Non – compliance in any link may lead to product recalls, fines, or lawsuits. A compliance review mechanism should be established to deal with dynamic supervision.

2. Entrepreneurship Guide

(1) Suggestions on Entrepreneurial Opportunities

Driven by environmental protection policies and the rapid development of the new energy and cold – chain logistics industries, there are clear demand gaps for low – temperature – resistant plastic parts in scenarios such as new energy vehicle battery components (e.g., battery casings in low – temperature environments), cold – chain transportation packaging (customized pallets resistant to cold and impact), and polar scientific research equipment (lightweight and high – toughness protective components). Entrepreneurs can first enter the small and medium – sized customized production services (e.g., 3D printing of low – temperature – resistant connectors with rapid prototyping), cooperate with material R & D institutions to develop low – cost bio – based low – temperature – resistant materials (to replace traditional petroleum – based products), and integrate regional industrial waste plastic recycling networks to establish a modified technology system for recycled low – temperature – resistant plastics, reducing raw material procurement costs by more than 20%.

(2) Suggestions on Entrepreneurial Resources

Entrepreneurs in the low – temperature – resistant plastic parts industry should first integrate industry – university – research resources, establish technical cooperation with polymer materials research institutes, and obtain patent licenses for cold – resistant modification formulas. They should jointly build a quality verification system with regional low – temperature testing centers to reduce equipment investment costs. Focusing on downstream application scenarios such as cold – chain logistics and new energy vehicles, they can obtain order resources through joint sample development with leading enterprises. By using the shared injection – molding workshops and environmental assessment qualifications in the new materials industrial park, they can shorten the production preparation cycle. They should apply for equipment subsidies and export tax rebate policies from local governments for new materials enterprises to optimize the cash – flow structure.

(3) Suggestions on the Entrepreneurial Team

When forming an entrepreneurial team in the low – temperature – resistant plastic parts industry, the founder should first recruit core members with a background in low – temperature modification technology of polymer materials, be accompanied by industrial experts familiar with low – temperature application scenarios such as the automotive or aerospace industries, and introduce technical workers with experience in managing special plastic product production lines. The team should have at least one quality engineer proficient in low – temperature testing standards such as ISO 16474, and also recruit supply – chain talents with channel resources for low – temperature materials. It is recommended that the core team maintain a scale of 5 – 7 people. Tie up technical backbones through equity for more than 3 years of cooperation. Regularly organize team members to participate in low – temperature certification training such as UL 746B. Establish an advisory committee composed of technical directors of downstream application enterprises, and recruit composite talents with a background in low – temperature material R & D from enterprises such as BASF or DuPont through industry exhibitions.

(4) Suggestions on Entrepreneurial Risks

Entrepreneurs in the low – temperature – resistant plastic parts industry should first control the verification of material performance, select engineering plastic suppliers with UL or ASTM low – temperature certification, and establish a process for testing the performance of raw material batches. They should accurately position downstream application scenarios. It is recommended to focus on incremental markets such as new energy vehicle battery brackets (with a – 40°C demand) and cold – chain logistics packaging, and verify the real needs of customers through small – batch customized production. When building a flexible supply chain, 2 – 3 modified plastic manufacturers distributed in different regions should be reserved to ensure the stability of supply under extreme weather conditions. 30% of the cash flow should be reserved for capital allocation to deal with mold iteration (usually 3 – 4 low – temperature impact tests are required for each product for improvement). Apply for high – tech enterprise certification simultaneously to obtain a 15% income tax reduction. Establish a product failure database and regularly track the actual operating condition data of sold parts in extremely cold regions in the north.

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