Paper Packaging :How to bask in the biz of masks

What helped China stand out from the crowd was the approach adopted by its corporates such as China National Offshore Oil Corp or CNOOC, and China Petrochemical Corp, also known as Sinopec Group. They produced additional quantities of polyethylene, polypropylene and medical-grade synthetic resin. The petrochemicals are raw materials for face masks, syringes and other medical supplies. Their production helped preempt any medium to long-term shortages.

Similarly, China National Petroleum Corp, or CNPC, produced disinfectants, protective suits and masks.

In the COVID-19 combat, the output value of face masks in China has surged, inflating demand that had been building due to rising health awareness and stop-start air pollution, a recent report said.

Beijing-based CCID Consulting said in a report China's output value of masks this year will likely surpass 13.2 billion yuan ($1.9 billion), up almost 28 percent from 10.2 billion yuan in 2019. Over the past five years, the output value of masks on the Chinese mainland had seen compound annual growth rate of nearly 13 percent.

On March 5, Li Xingqian, general director of the Department of Foreign Trade at the Ministry of Commerce, said demand for face masks remains high in spite of increased production, as various economic sectors head for a reboot after the extended break that began in January with the Spring Festival holiday.

Given that no restrictions have been placed on the trade of masks, producers are expected to carry out their business in a principled way, as per market forces, he said.

Data from the China Textile Commerce Association showed that in 2011, China's demand for face masks totaled 1 billion pieces. That figure quadrupled to 4 billion pieces in 2018. Owing to epidemic control measures, demand for masks is likely to continue to surge.

There are more than 530 million workers in the second-and third-tier cities. They each need at least one face mask every day, said a report from Hua Chuang Securities.

Lian Weiliang, deputy head of the National Development and Reform Commission, said during a news conference earlier this month that to ensure adequate supplies not just in smaller cities but countrywide, the government is encouraging mask producers to operate at full capacity.

According to the NDRC, by Feb 29, the country's daily production of face masks reached 116 million pieces, up 1,100 percent from the level on Feb 1. Among them, the daily production of surgical N95 type masks reached 1.66 million pieces.

According to Tianyancha, a Chinese corporate data provider, East China's Shandong province tops the list with 1,094 mask manufacturers that make 2 million pieces daily, followed by Jiangsu and Zhejiang provinces.

Other provinces are also ramping up efforts. For example, as reported by bjnews, the Beijing municipal government has retrofitted 23 old production lines to make 80,000 high-quality masks per hour.

Similarly, Chinese companies engaged in non-medical businesses have improvised or innovated their factories to produce masks. For instance, Shenzhen-based carmaker BYD announced on Feb 8 it will expand its product portfolio to produce masks and disinfectants. The company said its daily production capacity for masks is estimated to reach 1 million pieces by the end of this month.

Shanghai-based underwear brand Threegun Group has also jumped on the mask bandwagon. Its pilot production line is capable of producing 40 masks per minute, and full-fledged machinery upon installation will ramp up production to over 100 masks per minute. In all, the company plans to install 50 mask production lines to raise daily production to 5 million masks.