China's overseas paper mills and packaging printing enterprises set up a large inventory

In recent years, China's paper and packaging printing industry is facing a passive situation of overcapacity and vicious competition due to the shift of orders from China and the overdraft of Chinese consumption.

Judging from the market performance of global printing equipment giant KBA in 2015, the Chinese market is weak, but Southeast Asia and South Asia have performed strongly, while sales in Latin America and Africa have declined significantly. Especially since the fourth quarter of 2015, the signs of weak market demand in China are very obvious.

As the domestic market fell more than expected, China's large packaging company Hexing Packaging had to stop pre-printing projects for Wuhan Huayi Factory. Fosbury, which was acquired by Oriental Seiko, was claimed for its unsatisfactory profit, and Meiyingsen acquired gold. After the color, the latter's net profit was far worse than expected, and Tiger Lottery was returned to the sale of shares due to the decline in profitability.

Faced with such a difficult situation, China's packaging and printing industry began to seek to set up factories overseas to break through the current dilemma. So far, are there companies that have a good start?

Tranlin Paper

In June 2014, Tranlin Paper announced the establishment of its modern manufacturing facility in the United States in Virginia. The project has a total investment of US$2 billion and is expected to create 2,000 new jobs in 2020. According to reports, the project was built on an 850-acre campus in the James River Industrial Center in Chesterfield County, Virginia.

Zhenglong Paper

In October 2015, due to the growing demand for industrial papers in Southeast Asia, and the shifting of major customers to the south, and considering the ASEAN tariff issue, the domestic industrial paper manufacturer Zhenglong (1904) decided to add a paper mill in Pingyang, Vietnam, to estimate the total investment amount. Up to 240 million US dollars (about NT$ 7.8 billion), it became the investment case of Zhenglong Overseas. Zhenglong said that the annual production capacity of the plant is 300,000 tons, mainly for self-use. It will start construction at the end of the year and will be put into operation in the first half of 2018.

Nine Dragons Paper

As early as May 2008, Nine Dragons Paper completed the acquisition of a 60% controlling stake in a paper mill in Vietnam, accelerating the occupation of the ASEAN market in Vietnam, Laos and Cambodia. The base has an annual production capacity of 100,000 tons of boxboard base paper. In March 2015, Nine Dragons Paper Group said it is planning to build a second phase of the Vietnam Base project, which plans to produce 350,000 tons per year. It is expected to be completed and put into operation by the end of 2016. After the project is completed, the Vietnam base will have an annual production capacity of 450,000 tons. The paper type involves cattle cards, corrugated paper, and the like.

Lee & Man Paper

On August 6, 2007, the Vietnamese Lee & Man Paper Mill held a groundbreaking ceremony in Houjiang Industrial Zone, Houjiang Province. Vietnamese Deputy Prime Minister Yu Shengxiong attended the ceremony. Lee & Man announced that Vietnam's investment projects include a paper mill with an annual output of 1.5 million tons, a wood pulp mill with an annual output of 1 million tons, a power plant with a final capacity of 600 MW, and a terminal with a throughput of 10 million tons. The project cost HK$1.6 billion and was put into production in October 2008. The project is divided into four to five phases and the total investment is expected to reach approximately HK$8 billion. In 2014, due to anti-China riots in Vietnam, the project was temporarily suspended. However, since 2015, Lee & Man has accelerated the progress of the Vietnam project and is expected to be completed and put into operation at the end of the year.

Sun Paper

Sun Paper announced on the evening of November 22, 2015 that it signed a letter of intent for investment cooperation with the Arkansas Economic Development Committee. The company plans to build a 700,000-ton fluff pulp production base in Arkansas, with a total investment of about 1.36 billion US dollars. According to incomplete statistics, in the past three years, Sun Paper has announced a total of more than 21 billion investment projects, of which Jining Zoucheng's five paper projects up to 9.7 billion, the US 8.7 billion investment projects can only be second.

Yutong Group

As early as April 2010, Yutong Group, a top five Chinese printing company, established a branch in Vietnam. Vietnam Yutong Printing & Packaging Co., Ltd. is located in Jingbei Industrial Park, Guiwu Industrial Zone, Beining City, Vietnam. Vietnam Yu's investment in the same period is 4.5 million USD, mainly providing integrated packaging products for local foreign-invested enterprises, including: color box packaging, carton packaging, product manuals, labels, gift box packaging, tobacco and alcohol packaging, cosmetic packaging, Food packaging, packaging cushioning materials, etc.

Hexing Packaging

On March 14, 2016, the global packaging industry reported heavy news. The merger and acquisition fund company Xiamen Heqiao Equity Investment Partnership (Limited Partnership), which was formed by Hexing Packaging, acquired US International Paper in China, Malaysia. 18 corrugated packaging production bases in Thailand and Indonesia. With this acquisition, Hexing, the leading Chinese packaging company, not only completed the national layout, but also extended its reach to the Southeast Asian market.

Jingshan Light Machine

Jingshan Light Machinery Group is a manufacturer of packaging and printing equipment with a large number of tiles in China. Since 2001, the company has begun to try its international business and has set up branches in Russia, Egypt, India and Vietnam. In 2011, Jingshan Light Machine set up a packaging factory in India to reduce costs by using local cheap labor, and to expand the local market in India and reduce transportation costs. Nowadays, under the new opening situation, Jingshan Light Machine has accelerated its pace of going out and plans to set up R&D centers in the United States and Europe to promote the transformation of the company with advanced technology.

Oriental Seiko

On March 25, 2014, Oriental Seiko invested 60.80 million euros to acquire a 60% stake in the Italian Fosper Group, the world's second largest corrugated board manufacturer, and successfully staged the script of Snakes. Founded in 1978, Fossberg (Italy) is a company specializing in the development and production of corrugated board production lines and related equipment. It is one of the world's two largest companies in the field of high-speed wide corrugated board production lines.

Baosteel Packaging

On the morning of March 12, 2012, Vietnam Baosteel Can Co., Ltd., jointly invested by Baosteel Metal Co., Ltd. and Baosteel Singapore Trading Co., Ltd., held a grand groundbreaking ceremony in the Vietnam-Singapore Second Industrial Park in Binh Duong Province, Vietnam. Vietnam Baosteel Cans mainly produces 330ml and 500ml aluminum two-piece cans, which were completed and put into operation in 2013, but suffered severe impact during the Vietnam riots in 2014. In 2015, Baosteel Packaging decided to invest 237,667,900 yuan in the second phase of the construction project of Wuhan Baosteel Can Co., Ltd., and all of them will be made of two pieces of Hue, Vietnam. The project will be completed and put into production in the first half of this year.

(Original title: Paper and packaging printing companies set up in overseas factories)