Date | 2026-03-28 08:52:00
In recent years import substitution has moved from a policy idea to an industry consensus, becoming an important engine of manufacturing upgrade. In semiconductors, industrial software and high-end equipment, localisation has already made notable breakthroughs. In composites — particularly high-performance thermosets such as BMC (bulk moulding compound) and SMC (sheet moulding compound) — the same wave is building, but with its own particular opportunities and challenges.
The short version: in high-end composites, import substitution is not a matter of “changing supplier” but of passing three gates at once — technical accumulation, certification trust and supply-chain coordination. The real gap is not in general mechanical properties, which can be checked item by item against a company standard; it lies in the application data accumulated for specialised formulations (long-term ageing, batch consistency) and in the breadth of certification coverage. The opportunity for local suppliers is likewise not low price but three things: downstream scenarios whose standards are not yet fixed, integrated delivery of material plus tool plus process, and fast customisation and iteration for a specific duty. To judge whether a supplier can substitute, look at three items: written company-standard figures with batch-by-batch test data, third-party reports, and integrated delivery capability — miss one, and laboratory performance tends to be discounted once production starts.
For decades the high-end composites market has been dominated by overseas majors. In key fields such as electrical insulation, automotive components and rail transit, dependence on imported core materials has not fundamentally changed. Geopolitical volatility, trade barriers and the risk of supply interruption have made downstream manufacturers increasingly aware of how strategically important material localisation is.
Imported materials are not only expensive; long procurement lead times and slow technical support have long troubled domestic manufacturers. Local material suppliers can offer shorter delivery times, more flexible customisation and more accessible technical support — which is the practical driver behind import substitution.
As downstream industries move towards higher performance, greater intelligence and lower environmental impact, the requirements placed on materials keep rising. From ultra-thin-wall flame retardancy to high hydrolysis resistance, from antistatic and explosion protection to high-temperature stability, these demands are both a challenge to local material suppliers and an opportunity for a technical leap.
Developing high-end composites involves resin chemistry, fibre reinforcement, filler systems, moulding processes and other disciplines, and requires long technical accumulation and sustained investment. Compared with international majors, domestic companies still lag in fundamental research, database building and application validation.
Taking BMC as an example, moving from a general-purpose grade to a dedicated one requires formulation optimisation for different applications such as vehicle lighting, electricity meters and pumps and valves. Behind each dedicated material lies a large body of experimental data and application cases.
In safety-sensitive fields such as electrical equipment and automotive components, material certification cycles are long and the cost of switching is high. Once a material grade has been written into a drawing, manufacturers are often reluctant to change supplier. This creates a strong brand barrier: international majors have built a moat from years of accumulated cases and certifications that is hard to cross.
The success of a high-end material depends not only on its own properties but on coordination along the chain. From raw material suppliers to toolmakers, from moulders to end customers, the whole chain has to work together. Yet the authority to set standards and to define test methods still rests largely with overseas companies.
The rapid growth of new energy vehicles, smart grids, energy storage systems and 5G communications has created new demand for high-performance composites. Standards in these fields are not yet fully fixed, which gives local materials a chance to take part in defining them early.
In new energy vehicles, for example, lamp brackets, motor terminal boards and battery pack structural parts place new requirements on heat resistance, dimensional stability and light weight. These new scenarios are precisely where local materials can focus their effort.
Where overseas majors tend to focus on the material itself, domestic companies can use their proximity and flexibility to offer an integrated material-plus-tool-plus-process service. Close coordination of this kind helps downstream customers move faster from material selection to volume production, creating a differentiated position.
Against a background of global supply-chain restructuring, domestic manufacturers are paying more attention to local supply than ever before. Domestic material companies with stable capacity, reliable quality and real technical strength are encountering a once-in-a-generation opportunity to enter core supplier lists.
The standardised product ranges of overseas majors often struggle to meet individual customer requirements. Local companies can formulate to the specific duty — coastal corrosion resistance, extreme-cold weather resistance, high-temperature stability — and iterate and optimise faster.
Competition in materials ultimately comes back to technical strength. Sustained investment in fundamental research, a well-built material database and accumulated application cases are the only route for local materials to reach the high end.
Competing head-on with international majors in general-purpose materials is difficult. Focusing on specific segments — vehicle lighting, electricity meters, pumps and valves — and building dedicated materials with distinctive advantages is the more workable route.
Import substitution is not a simple price war; it is about defining the product together with the customer and solving the pain points together. Only by understanding the requirement deeply and taking part in the early design can a long, stable relationship be built.
In high-end materials, reliability is the highest barrier of all. Establishing a strict quality management system, obtaining authoritative third-party certification and earning customer trust through consistently stable product performance is the baseline that local material companies must hold to.
Import substitution is not a sprint but a marathon that rewards patience. In high-end composites, opportunity and challenge coexist: downstream upgrading opens a large market, while the technical gap and brand barriers remain real tests.
The companies able to settle down to accumulate technology, stay close to customer requirements and offer integrated solutions will win their place in this wave. We are glad to work with partners along the chain to write the next chapter of high-end composite localisation through material innovation.
Basis: the Q/JTJ0001-2025 company standard and publicly available qualification information. The “verification method” column indicates the type of material a supplier can be asked to provide at the selection stage; specific items are requested as required.
On general electrical-grade figures the gap is no longer large, and it can be checked item by item against a company standard. The real difference lies in long-term application data for specialised formulations — ageing behaviour and batch consistency — and in the breadth of certification coverage. When selecting, ask for the data relevant to the specific application rather than judging from a general property sheet alone.
It depends on the industry. In safety-sensitive fields such as electrical, rail transit and automotive, item-level certification such as UL or EN 45545 usually has to be repeated, or at least targeted validation completed. It is advisable to obtain the existing reports first and check the test items and thickness, then arrange a small trial production run.
Three checks: can the supplier provide written company-standard figures with batch-by-batch test data; are there third-party reports (SGS, CNAS, UL); and does it have integrated material–tool–process capability. If any one of the three is missing, laboratory performance tends to be discounted once production begins.
For technical data sheets, grade recommendations, or a discussion about your specific requirements:
📧 wendy.qiu@smcbmc.com 📞 +86-13868305300
