I. southwest China:

A relatively closed market.

2. On the basis of economic development in the west, the demand for glass has been increasing rapidly in recent years, leading to rapid expansion of production capacity in the region.

3. It is very likely that "self-harm" will inevitably occur in the future to reduce production capacity, and it is unable to export production capacity to other regions.

Disadvantages: high production cost (compared with enterprises in central China).

Current prices can prevent glass from entering central China on a large scale (wuhan - chongqing transportation cost 150 yuan).

2. South China:

1. In the case of continuous loss of mid - and low-end deep processing business, keep to the local building glass market and advantages of mid - and high-end deep processing business.

2. Relatively complete glass production and deep processing industrial chain.

3. Stable and mature process, high quality.

Disadvantages: high production cost, high labor cost, high tax and other costs, high financial cost, high transportation cost to expand to other regions.

North China (shahe) :

1. Thanks to the advantage of high industrial concentration, continue to develop and promote the deep processing industrial park, and increase the consumption ratio of original films.

2. Continue to consolidate and strengthen cost advantages: supply chain integration and informatization.

3. Reduce the dependence on price war and take profit as the guidance.

4. Enhance logistics integration and improve efficiency (planned to open regular trains from shahe to tianjin by the end of March 2016) : beneficial to export business

Advantages: low direct production cost, low labor cost, low financial cost, high industrial concentration.

Disadvantages: the product quality is mainly medium and low end; High pressure on environmental protection: the shutdown or semi-shutdown of major activities has a great impact; Export to the main motor transport, high cost.

Iv. Central China:

Before HuaErRun bankruptcy, strategic situation in central China, southwest sales encounter greater resistance, resistance by shahe north direction, dominated by companies like HuaErRun east direction and found no breakthrough, in their own regional demand in a strategic dilemma, it is likely to be lead to 15 years in central China sales prices and once at the end of July at below cost

Advantage:

1. Low labor cost, low financial cost and low direct production cost.

2. Wide coverage of waterway transportation (along the Yangtze river).

Wuhan - jiangsu region, the transport cost of 50 yuan, far lower than the shahe - jiangsu, zhejiang and Shanghai around the cost of motor transport.

Disadvantages: the product quality is mainly at the middle and low end with low industrial concentration.