Home> Industry Information> Paper packaging has encountered the hardest year in history: and see how these Fujian packaging companies

Paper packaging has encountered the hardest year in history: and see how these Fujian packaging companies

September 23, 2020

The city gate caught fire, and the pool fish. Since the beginning of this year, the words "monetary tightening", "inadequacy of enterprise development" and "market downturn" have been appearing in the public eye. The economic downturn inevitably affects the development of Nan'an manufacturing industry, which also affects the upstream and downstream industrial chains surrounding its survival. As one of the downstream links that are not eye-catching, the packaging industry such as paper and plastics is also "shot". A number of industry insiders said that the packaging industry has encountered a difficult situation since its development this year.

However, according to Wang Wenmai, deputy general manager of Nan'an Hengfa Packaging Co., Ltd., a large-scale cardboard manufacturer in Nan'an, the recent orders for cardboard have gradually increased, and the market has shown signs of recovery.

The reporter learned that most of the current packaging enterprises are seeking survival in low profits. In order to break through faster, enterprises have actively carried out technological transformations, improved the technological level, opened up new customers, and strived to survive in the "difficult years of history."

The current performance of plumbing packaging has dropped by 40%.

“In the first half of the year, the company's turnover increased by 15% year-on-year, but the two months fell slightly, and the overall situation was relatively optimistic.” Chen Danhong, general manager of Fujian Jiahua Packaging Co., Ltd. said that the environment is not good this year, the company has achieved such a good result. .

As the leader of the Nanan packaging industry, Jiahua Packaging in the successful development zone has set a benchmark in the industry. Although the performance of the past two months has a downward trend, Chen Danhong seems to be relatively calm, and her source of confidence is not unreasonable.

"The packaging industry will not be eliminated in 50 years. People can't wear clothes, products can't be lack of packaging." She described the importance of packaging. The theory of "packaging such as clothes" has been endorsed by many insiders.

As a downstream industry in Nan'an manufacturing industry, the packaging industry has been in an obscure position, but in recent years, the speed of development has begun to be known. According to Fu Yangyi, secretary general of the Printing Association of Nan'an City, since the establishment of the association in 2007, there have been more than 110 member units. This year, four newly established packaging companies in Kangmei and Lun Cang have also joined the conference. "Since the beginning of this year, packaging enterprises in Jinjiang, Shishi, Fuzhou and other places have closed down. Nan'an has not closed down but has set up new enterprises. This is rare." Fu Yangyi said that although this year is difficult, the Nanan packaging industry is still slow. development of.

Even so, the establishment of a new company can not hide the development of the industry. "The outlook for the packaging industry is very good, but it is very sad now." Deputy Secretary-General Huang of the Printing Association of Nan'an City said helplessly because he is also the owner of a packaging company. An industry insider who did not want to be named also revealed to reporters that in the first half of this year, Nanan packaging enterprises, especially plumbing packaging enterprises, experienced different levels of business decline, and some fell even to 40%.

“More than 110 member units, including more than 70 companies engaged in packaging, more than 20 companies specializing in plumbing packaging.” Fu Yangyi said that these companies are called bitter this year. For this reason, the association also held a special meeting last month. A forum for plumbing packaging companies to discuss countermeasures.

The dilemma is deep in the price war and it is difficult to recover

Everyone sat down to discuss how to deal with the crisis, a situation rarely seen before 2014.

"In the past few years, the business volume has been unable to eat, and this year is not enough." Fu Yangyi said that 2007 is a year of rapid development of the packaging industry in Nan'an, and it has been stable in the following years. Since last year, it has started to decline on a large scale. It is a difficult year. One of the important reasons is that the development of the plumbing industry has slowed down and directly affected the downstream industries.

Most of the companies are too dependent on plumbing companies, and this view was endorsed by Deputy Secretary-General Huang. "It’s a shame and laugh. It’s laughter. Compared with other industries, packaging companies are less affected by the market and have something to do. And the cry is that the return is very slow now, and the capital turnover is very high.” He said that the payment back slowly became an industry. Common illness, if the situation is good in the past, it will be able to pay back within half a year. It is very difficult this year.

Deputy Secretary-General Huang said nothing. Wang Wenmai said that due to the industry characteristics, the packaging industry needs to accumulate a large amount of stocks, and the capital turnover is slow. If the payment returns slowly, the corporate capital pressure will be even greater.

From the enterprise level, due to the credit crunch, the light industry's credit support has continued to decline, leading to a tighter capital chain for some enterprises. The tight capital chain has become an important obstacle to the development of packaging companies.

The person in charge of a number of packaging companies also said that rising production costs such as human resources and enterprise management, as well as disorderly competition in the industry, have become the main challenges facing enterprises.

“The competition among enterprises is too great.” Chen Danhong said that disorderly competition among enterprises directly led to a decline in industry profits. Deputy Secretary-General Huang was deeply touched by this: "This year, corporate profits have fallen by at least 20%."

“The quality is better than the difference. You said how to do this market?” Fu Yangyi said two reporters with the same plumbing box.

It is understood that the current Nanan packaging enterprises are relatively small, about 80% of which are family workshops of less than 30 people. The market competitiveness is weak and the development space is small. In order to compete for customers, there are many disorderly competitions, and price wars are one after another.

Wang Wenmai revealed that the sales radius of the packaging industry is around 100 kilometers. Beyond this radius, profits will become thinner and thinner. "So most of the business is concentrated in Nan'an, can the competition be small?"

"For enterprises that mainly use plumbing enterprises as customers, we reached three consensuses at the forum: stop internal vicious competition; establish industry return rules; strengthen business cooperation and achieve resource sharing." Fu Yangyi said.

Outbound development products attack the international market

According to Fu Yangyi, this year the packaging industry is living, and it is very flat. Having said that, some companies still have a good time.

The reporter recently saw at the Hengfa factory that large trucks for loading and unloading goods are frequent. "Unlike other local companies, Hengfa's majority of its business comes from Xiamen. The goods on these vehicles are basically shipped to Xiamen. There are about 100 trains a day." Wang Wenmai pointed to the vehicle and said that the company mainly produces cardboard and cardboard is a carton packaging enterprise. In the upstream industry, there are hundreds of cooperative customers, and the industry has a wide coverage. The market impact is not obvious.

“At the end of this year, the company’s 400-mu new plant in Chengdu will be put into production.” Wang Wenmai introduced that the southwestern region’s rapid economic development and the expansion of its business into these regions can inject new impetus into the enterprise. As early as seven or eight years ago, Hengfa had purchased about 200 acres of industrial land in Anxi to build a branch, and has now become a tea packaging supplier in Anxi, covering about 90% of the local tea packaging market share.

Similarly, K. Wah Packaging is also expanding its business coverage and has been developing into the market a few years ago. “Jiahua pays close attention to customer satisfaction and market demand. With the changes in the market, domestic and foreign customers have higher requirements for packaging. In recent years, we have continuously innovated and strived for excellence in craftsmanship, design, structure and quality. Become a good overall packaging solution service provider." Chen Danhong said.

The overall quality of the products has improved, and the time for K. Wah to expand its business abroad has matured. In 2009, Jiahua Xiamen Marketing Branch was established, focusing on the European market. “The Ministry of Foreign Trade has been recognized by customers, and the business volume has increased year by year, and it has achieved profitability,” said Chen Danhong. In addition, e-commerce has become one of the ways for K. Wah to break out: At present, K.C. has begun to conduct business on e-commerce platforms such as Alibaba and Tmall.

In addition to continuously expanding new areas in the business, timely updating of equipment is also an important reason for companies to keep up with market development.

Just last month, Hengfa invested millions of dollars to install the corrugated board transmission system successfully. Wang Wenmai said that the corrugated board conveyor system can change the chaotic situation of previous product stacking and improve the product shipping efficiency by nearly 40%. The reporter learned that Hengfa will carry out technical reforms almost every year and invest millions of yuan every year. “The technical content of this industry is not high, but the requirements for mechanical equipment are high, and good equipment can produce higher quality products,” he said.

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