China's corrugated packaging market enters a post-merger, reorganization era

In January 2011, the Swiss Bobst Group completed the acquisition of Shanghai Xuheng Tiegong Machinery Co., Ltd., and it has been difficult to really open the Chinese corrugated packaging market in the face of competition from low-priced Chinese products; Mr. Xu Zhilin, general manager of Wuxi Nanjiang, a leading packaging machinery manufacturer in China, told the author that he will soon carry out strategic cooperation with China Aerospace Science and Technology Corporation and become a member of the company. In Xu’s opinion, this cooperation will be the participation of Wuxi Nanjiang as a national brand in the world. The new beginning of stage competition.

From the perspective of industry exhibitions in recent years, it is not difficult to find out carefully that the corrugated packaging industry in China has seen two major development trends: overseas giants have accelerated the layout of the Chinese market, and at the beginning of development, many overseas companies were often trapped in the local community. The challenge of simple and cheap products is difficult to achieve. Now they have more choices to cooperate with local brands to occupy the Chinese market; the national enterprises join forces and after the initial capital accumulation and subsequent rapid development, a large number of outstanding The companies started to stand out, expand the high-end market and expand overseas. In the author's opinion, mergers and acquisitions are an important sign and the only way for any market to mature. In recent years, China has maintained a high speed of development. The corrugated packaging industry in China has ushered in an exploration, disorder, and primary competition. A more mature stage of growth.

Development is an eternal topic of business. However, how to develop, how to develop, where is the direction of development, these are the topics of concern for each company. In a long interview, Xu Zheng Tie Gong's Chairman Zheng Hao stated that Xu Heng, as a domestic post-press manufacturing company, chose to cooperate with Bobst and rely on the introduction of foreign advanced technology to arm himself and achieve a leap in the company’s product quality.

In the interview, Chairman Cheng Zheng talked about the acquisition of Xuheng Ironworker by Bobst. Zheng Zheng, Chairman of the Board of Directors, believed that the acquisition was not annexed. On the contrary, through the acquisition of Xuheng Ironworker, he could arm himself through Bobst’s technology. In the final analysis, it still serves the Chinese market. Speaking about the issue of domestic competition in the same industry, Chairman Cheng Zheng said: “If you are always worried about others competing with you, then it is meaningless because you are worried that it is useless. On the contrary, only through healthy competition can you let Everyone can improve. This is the best."

For the cooperation with China Aerospace Science and Technology Corporation, Mr. Xu of Nanxi, Wuxi, also believes that relying on the strong support of China Aerospace Science and Technology Corporation, will present a new situation for the development of Nanjiang in Wuxi. In an interview, Xu told the author: “We will cooperate with China Aerospace Science and Technology Corporation and will use their advantages to achieve a better development of Wuxi Nanjiang in the field of paper bag packaging.” Xu said that in cooperation with China Aerospace Science and Technology Corporation After that, Wuxi Nanjiang will be the leader of the bag making machine industry in two years.

In Xu's opinion, the goal of Wuxi's Nanjiang is not only to create more and better equipment products, but to represent China's national brand standing on the highest stage in the world. The strong combination with China Aerospace Science and Technology Corporation is the best choice and is also an inevitable choice for Wuxi Nanjiang as a mature company.

As the protagonist of the acquisition of Xuheng Ironworks, Bobst Group, one of the world's largest manufacturers of packaging, printing and finishing machinery, has been operating in China for many years and has been active in the Chinese packaging and printing industry, but its "Good" and "expensive" products have always been blocked by low-priced products in China, and the contract with Xu Hengheng will undoubtedly be a strategic breakthrough for the Chinese market. In an interview with Bobst Diecut/Flexo Product Manager of Greater China Region, when talking about how the customer needs in the Chinese market are different from those in other regions, I told the author: “Each market must have its own characteristics. The market has great potential and there are also many suppliers in the same industry. We like to compete for BOBST. Only good market competition can enable companies to keep improving.

For Bobst's products, he said: "In the Chinese market, customers' impressions of Bobst seem to be two words: 'good' and 'expensive.' 'Good' is an affirmation of Bobst's products, and On the one hand, BOBST products are indeed more expensive, and we are currently building a diversified product line for this.”

The change in China's corrugated market is a must-go for a mature market. Any mature company will not be afraid of competition and will not refuse to share it. For a mature market merger and restructuring, the pain is also a metamorphosis. We welcome it. The more "Boster" people bring more and better equipment and technology, we will also raise the national banner for more and more "Wuxi Nanjiang" to the world stage and welcome the encouragement!