In the late 1980s, China began to build color plate units one after another. These units were mostly built in steel plants and joint ventures, and the color steel plate process equipment was basically imported from abroad. By the year 2000, domestic color steel plate reached 1.73 million tons, and there was excess capacity. The state-owned extra-large iron and steel enterprises have a high level of production capacity and equipment, and have successively built color steel plate sets with foreign technologies and annual production capacity of 120,000 to 170,000 tons.
At the same time, many private-sector companies invest in color steel plate production mostly using domestically produced equipment and have small production capacity, but they are quick to start up and low in investment. The products are mainly for building materials and decoration industries. In addition, foreign-funded and Taiwan-funded companies have also landed to build color-coated units, but most of them are concentrated in coastal areas. Since 1999, with the flourishing of the color-coated board market, the production and consumption of color-coated sheets has entered a period of rapid growth. From 2000 to 2004, the production volume increased at an average rate of 39.0%. By the end of 2005, the nation's color coated plate production capacity has exceeded 8 million tons/year, and a number of color coating units are under construction. The total production capacity in the country exceeds 9 million tons/year.