"China Printing City" has not changed in the past ten years

Wenzhou Cangnan, a small town with the reputation of “China Printing City”, is experiencing an unchanging change in the past decade: the number of enterprises is decreasing, and the total output value of the printing and packaging industry is declining.

The reason for this phenomenon is that the price of raw materials has soared in recent years, which has led to a decline in corporate profits. Second, because of environmental protection, in August last year, the Central Environmental Protection Inspector Group proposed rectification requirements for Cangnan Printing and Packaging Industry: shutting down the elimination of one. Batches, in situ upgrades, and agglomeration production, complete the rectification by the end of December 2018.

Raw material prices erode corporate profits

In recent years, due to the surge in raw material prices, corporate profits in the Cangnan printing and packaging industry have fallen sharply. In September, Chen Houqiang, secretary-general of the Printing and Packaging Industry Association of Cangnan County, said that since the beginning of this year, the cumulative increase of papers of many varieties has increased by about 20%. In addition to the band increase in the past two years, the price of raw paper has increased by more than 50%.

Huang Changhua, head of Wenzhou Huanran Packaging Co., Ltd., revealed that for a packaging company, the cost of raw paper accounts for more than 70% of the total cost of the enterprise. In other words, a 20% increase in the price of raw materials means that the company has directly increased its total cost by about 15%. “A company with a gross profit of 15% is not easy.”

(In September, the media reported on the printing and packaging industry in Cangnan)

Printing and packaging base with environmental protection spell

In addition, environmental protection is also a major factor. According to the "Wenzhou Daily" report, on November 2, in the Dongcang Industrial Zone of Lingxi Town, the printing workshop of Evergrande Packaging Co., Ltd. has been completely dismantled. Lingxi Town Deputy Mayor Zhuang Cai introduced that in July this year, a number of departments jointly dismantled the illegally built factory buildings, covering an area of ​​35,000 square meters, shutting down 38 enterprises, and including 12 reforms.

In the Longgang Town Industrial Park, Wenzhou Jinchi Technology Co., Ltd. has built a new factory, and the production workshops and equipment are in full swing. According to Zhu Yupin, the person in charge, this is the VOCs treatment equipment introduced by the relocation of the factory, which can solve the air pollution problems that often exist in the traditional printing industry.

It is reported that in August last year, the Central Environmental Protection Inspector Group proposed rectification requirements for the Cangnan printing and packaging industry: shut down and eliminate a batch, upgrade a batch in situ, and gather a batch of production, and complete the rectification before the end of December 2018. This has also accelerated the rectification of the Cangnan printing and packaging industry.

No change in the past ten years

On the one hand, environmental protection continues to be high pressure. On the one hand, the price of raw materials has skyrocketed. This small town with the reputation of “China Printing City” is experiencing a change that has not changed in the past ten years: the number of enterprises is decreasing, and the total output value of the printing and packaging industry is declining.

According to public information, in 2012, the total output value of the printing industry in Cangnan County was 10.53 billion yuan, and in 2013 it was 10.178 billion yuan, and in 2015 it fell to 10.012 billion yuan. The number of enterprises is also decreasing year by year. According to the latest data, there were more than 1,200 printing and packaging companies in early 2017, and by the end of the year, there were only 700 companies that had passed the five-year replacement business license review.

Perhaps every industry has to undergo a process of transformation and upgrading, as is the Cangnan printing and packaging industry. According to reports, Cangnan County has completed 240 sets of waste gas treatment and installation management facilities for medium-sized and above printing enterprises, helping 6 enterprises to rectify and upgrade to packaging and printing benchmarking enterprises.

In addition, Cangnan County has also started construction of seven printing and packaging professional parks with a total construction area of ​​2.2 million square meters. It is expected to be fully completed by the end of next year. By then, about 1,000 printing enterprises will be able to enter production. These measures will prompt printing and packaging enterprises to transform and upgrade while completing environmental protection tasks, and to scale and develop.

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