China
The developing Chinese economy continues to maintain a strong growth momentum. The economic growth rate in 2003 reached 8%, while the growth of the packaging and printing industry exceeded 10%. It is estimated that the economic growth in 2004 will not be less than 7%. Even the most conservative entrepreneurs will be optimistic about the prospects of the packaging industry. The development of the ink industry has basically kept pace with the packaging and printing industry. The average growth rate has reached 9% in the past five years. In 2003, the national ink production reached 200,000 tons, and the total ink consumption has exceeded 300,000 tons.
Based on an optimistic estimate of the future of the Chinese ink market, multinational companies including Dainippon Ink Chemicals (DIC), Toyo Ink, and Flint Ink have all increased their investments in China.
The DIC Group hopes to increase its share of the Asia-Pacific ink market to 35% in the next five years by increasing production efficiency and building new factories. Currently, DIC Group has a market share of 23% in the Asia Pacific region. The company expects to sell 100 billion yen worth of printing inks in the Asia Pacific region in 2010, so China and India are the most important markets for growth. According to forecasts, the Chinese ink market will maintain a growth rate of 10% per year before 2010. The company’s management believes that the Chinese market may be larger than the Japanese market. Relying on the strong technical strength and financial advantages of the head office, DIC successively invested in Shenzhen and Shanghai to establish two successful companies; through acquisitions of COATES, it also owns the shares of Taiyuan Gao's and Laurie: in order to occupy the South China market, it In addition to Shenzhen Printing Press Printing Factory, Shenzhen recently invested RMB 60 million with Yunnan Hongta Group to establish Yunnan Di Aisheng Ink Company (where DIC owns 60% of the shares, Hongta Group accounts for 30%, and the remaining 10% are printed by Yunnan Tongyin. Shares are held), and plans to reach 1.5 billion yen in sales in 2008. On the whole, DIC is centering on Guangdong Zhongshan, and the trend of significant expansion to the country has basically taken shape. It occupies an important position in the round transfer ink, offset ink, gravure ink. In addition to occupying the ink market, DIC has continued to operate in the raw material market. After it achieved resin production in Guangdong, it also established a pigment production base in Nantong, Jiangsu Province. On the one hand, it achieved nationalization of raw material production, reduced costs, and on the other hand achieved Control of the upper reaches of the ink production market. DIC currently occupies the largest share of the Chinese market, its three companies: Shanghai DIC, Shenzhen Shenzhen, Taiyuan Gao's 2003 total production of 28,100 tons, accounting for 13.82% of the country's total production.
1926 Toyo Ink, which opened a factory in China, also attaches great importance to the Chinese market and continues to accelerate the pace of business development in China. In the 10 years since Tianjin set up a joint venture to establish Tianjin Toyo Ink Co., Ltd., four new factories have been established successively to maintain the nation’s A production scale. In 2003, it achieved output of 16,600 tons and sales revenue of more than 360 million yuan. Not long ago, the Toyo Ink Shanghai Representative Office was recognized by the Shanghai Municipal Government as the regional headquarters of a multinational company. Under it, it is home to 15 branches and factories all over the country, including investing 40 million yuan in the construction of Shanghai Songjiang Industrial Park. the company.
Flint Ink, the world's largest private ink company, has always been known for its prudent investment. Although several years ago it had established a representative office in Shanghai and purchased a large amount of raw materials in China, it was not until recently that the first factory was officially established in Beijing, China. Open. Flint Ink (Beijing) Co., Ltd. has invested a total of 7 million U.S. dollars. The main products produced in the first phase are news inks and thermosetting inks with a production capacity of over 10,000 tons. With the successful completion and production of the new plant, Flint also plans to establish new production projects one after another to enter the packaging ink market in China.
In addition, Tung Wah Ink will invest 2.1 billion yen (approximately 145 million RMB) in the next five years to substantially increase the production of offset inks and UV inks for Chinese subsidiaries (Hanghua Ink Chemical Co., Ltd. and Donghua Guangzhou Ink Co., Ltd.). The ability to complete the investment will increase the production capacity of Tung Wah Group's Chinese subsidiary by 90% to 30,000 tons per year. Another Japanese ink giant SakataInx Co., Ltd. also established a subsidiary in Shanghai for ink production and sales. The company's name is Sakata Ink Shanghai Co., Ltd. The company's registered capital of 600 million yen (about 40 million yuan), completed and put into operation in September 2003, the main production of packaging liquid ink and gravure ink, the annual output of 3,600 tons. Sakata Inx Co., Ltd. has also established a mid-term business plan for the period 2004-2006, according to which the company will increase its ink sales in the Asia-Pacific region from 6.7 billion yen in 2003 to 10 billion yen in 2006.
The large-scale entry of foreign capital has made China's ink industry's production capacity unprecedented increase, but at the same time it also poses a severe challenge to the survival and development of nearly 400 domestic small and medium ink companies. As domestic companies generally have many problems such as small scale, lack of talents, lack of funds, low R&D investment, etc., resulting in weak technological innovation capabilities and production technologies lagging behind the world level, domestic ink manufacturers must find ways to achieve large-scale operations. Seek to be invincible in the brutal competition of the future market.
India
The Indian economy has been growing rapidly for seven consecutive years. In 2003, India’s GDP grew by 8.2%. In January of this year, the speech made by Indian President Kalam on the domestic economic situation was widely publicized by the media. Kalam said that India’s economic growth momentum is strong. The GDP growth rate in the second quarter was 8.4%, foreign exchange reserves exceeded 100 billion U.S. dollars, the rupee (indian currency) was strong, the middle class was growing, and domestic purchasing power continued to rise, making India the fastest growing economy in the country. one. According to the latest statistics released in early April of this year, the economic growth rate in the third quarter of fiscal year (October to December 2003) was 10.4%. For the first time, it surpassed China to become the world’s largest, and its foreign exchange reserves increased to US$110 billion. The stock market climbed and broke the 6000 mark. Many economists predict that by 2020, the Indian economy will be among the best in the world.
India's packaging industry is currently worth $15.2 billion, which accounts for 2.3% of the world market. It is growing at a rate of nearly 15% per year, more than twice the global average growth rate. India has 1 billion consumers who are increasingly demanding. About 80% of Indian packaging products are consumed by only 20% of the population. India's per capita consumption of packaging is only 15.10 US dollars, while the world average of 105 US dollars. Only 2% of India's food production is processed. The Indian government hopes this number will rise to 10% in the next 10 years.
India's printing ink industry has a very good prospect. In 2003, India's printing and printing inks increased by nearly 10% and 12% respectively, of which the newspaper and packaging sectors were the fastest growing, and the UV ink market was gradually growing. In order to meet the market demand, ink manufacturers began to expand their operations in India. Some well-known ink companies, including Flint, Micor ink, Sakata Inx and Gaoshi have all increased their production capacity in India.
In contrast to the situation in China, China has nearly 400 small-scale ink factories, and its output accounts for half of the country’s total output. No single company’s output reaches 10% of the national output. In India, there are fewer than 100 small-scale enterprises and the number of In the continuous decrease, the largest ink company in the country, Instek's ink and resin company (has changed its name to Micro Inks), has produced more than 30% of the national production. Currently, it is actively expanding overseas markets, and has established a subsidiary in the United States, also in Shanghai, China. A representative office was set up, and its overseas ink sales have already exceeded domestic sales. At present, the company ranks 15th in the global ink company and is one of the world's largest ink manufacturers.
Japan
Traditionally, Japan has always been the most economically strong country in the Asia Pacific region, but in recent years it has also fallen into the quagmire of continued economic recession. After a few years of sluggish growth, the Japanese economy grew at a rate of 2.7% in 2003, and the printing and ink industries remained relatively flat. Then into 2004, this situation seems to have turned a corner. Japan's four major ink companies, including Dainippon Ink Chemicals, have forecast that due to the very good sales in Japan, China, and other Asian markets, their operating profits will have double-digit growth in fiscal year 2004. Dainippon Ink Chemicals Corporation stated that by March next year, that is, in fiscal year 2004, its operating profit is expected to increase by 14% from the previous year to 50 billion yen, while its net profit will increase by 57% to 100%. Billion yen. However, sales are expected to have a large increase from the previous year, which is estimated to be 960 billion yen. The company believes that in this financial year, it can reduce costs by 6.5 billion yen through the integration of its printing ink company's product and sales business in the United States and Europe, and the raw material and energy costs brought about by the rise in crude oil prices. The growth rate is more than 5 billion yuan. Toyo Chemical Ink Manufacturing Company expects its sales to reach 230 billion yen in fiscal 2004, a 6% increase over the previous year; its operating profit is expected to reach 11 billion yen, an increase of 16%; net profit is expected to reach 5 billion. The yen, an increase of 44%. Putian Ink Company predicts that its operating profit for fiscal 2004 is expected to increase by 10% from the previous year to 5 billion yen; net profit is expected to increase by 45% to 3.8 billion yen; sales will increase by only 2% to 95.7 billion. JPY. Tokyo Printing Ink Manufacturing Company expects to see significant growth in its color resin molding materials business for automotive interiors, which will drive its total sales to increase by 3% to 55.5 billion yen; its operating profit is expected to increase by 55%. At 1.6 billion yen, net profit will increase by 250% to 700 million yen.
Conclusion
Overall, the development of the ink industry in the Asia-Pacific region is still successful and hopeful. The outlook is encouraging. Of course, it is not without problems. The world is facing more and more stringent environmental standards, ink manufacturers are doing their best, the rapid development and promotion of environmentally friendly ink varieties such as toluene-free inks, water-based inks, and UV-curable inks are the future development of the entire ink industry. direction.
Sanjin Plastic Industry Co., Ltd. , http://www.sdmakeuppackaging.com