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    Features

    The Ink Industry in China

    ...

    The Ink Industry in China
    Tianjin Toyo’s headquarters in China.
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    David Savastano, Editor09.20.17
    China continued to enjoy economic growth in 2016, although the increase slowed during the past year. The World Bank reported that China’s gross domestic product (GDP) was $11.20 trillion in 2016, a slight increase from $11.06 trillion is 2015,with China’s GDP approximately 18% of global GDP.

    Estimated at $160 billion, China’s printing industry is big business, as is its ink industry. Ink World estimates annual sales of ink in China at more than $1.5 billion. While offset and gravure remain the leading processes, flexo and digital printing are growing.

    Domestic and multinational ink manufacturers play major roles in China’s ink industry. With $205 million in sales in 2016, Bauhinia Variegata Ink & Chemicals, a subsidiary of Yip’s Chemical, is China’s largest domestic ink producer and the 13th largest global ink manufacturer in the world, according to Ink World’s Top International Ink Companies report (July/August 2017). Despite the slowing economy, Bauhinia Variegata Ink & Chemicals reported a 6% increase in sales over 2015.

    International ink manufacturers also have a major presence in China. Hangzhou Toka Ink, a joint venture with T&K Toka, and Tianjin Toyo Ink Co., Ltd., a joint venture with Toyo Ink, are the two largest ink manufacturers in China. DIC, Flint Group, Sakata INX, Siegwerk, hubergroup and other ink industry leaders also have sizable presences in China.

    Ink manufacturers reported that growth slowed during the past year, although there were bright spots, including environmentally-friendly inks.

    “The unit price for printing fell,” said Yuichi Kataura, International Operations Division GM for Sakata INX. “This was due to sluggish consumer spending and price-cutting of some companies selling ink through the Internet after a slowdown in the Chinese economy the previous year. However, we are seeing paper prices increase since the end of 2016 and ink prices are ceasing to fall.”

    Katsuya Saso, manager, Packaging Materials Department, Global Business Division for Toyo Ink Co., Ltd., reported that in China and other countries in Asia, growth continued, although the pace of growth slowed.

    “Sales for the Printing and Information business were weak, reflecting a decline in capacity utilization at printing companies in China and Southeast Asia due to an economic slowdown and environmental regulations,” Saso noted. “In addition, sales for the Packaging Materials business saw sluggish growth in Southeast Asia and China. Profits were squeezed due to rising prices of raw materials. In the past year, the Toyo Ink Group was able to expand its operations to inland areas in China and broke into promising markets, successfully augmenting the number of business areas and strengthening networks in the region.”

    “The strongest printing market in China is packaging printing,” a DIC spokesperson reported. “The packaging ink business seemed to grow 2% to 3% in 2016, although the total ink market decreased by 3% to 4%.

    “During the past few years, DIC faced challenges from China’s government policy to strongly control dangerous chemicals in big cities like Shanghai and Shenzhen,” the DIC spokesperson added. “Because of that, we needed to transfer production from our Shanghai plant to another plant in the DIC Group. We also downscaled production in our Shenzhen plant to meet local government’s requests.”

    In terms of inks, Kataura noted that gravure ink for the flexible packaging and offset ink markets are the strongest printing markets in China.

    Saso said that in offset printing, UV is the dominant market for packaging applications, with LED gaining ground. “Labels are also an attractive growth market,” added Saso. “Both gravure and flexo inks for flexible packaging are showing strong demand in the region. In particular, we see good growth potential for high-function and high-value-added applications.”

    The Environment

    The environment is playing a significant role in China’s printing and ink industries, with issues such as pollution control and regulations on packaging inks front and center.

    Bauhinia Variegata’s emphasis on the environment is key to its success.

    “In China, the government pays more attention to protecting our living environment, meaning that environmentally friendly products are the trend,” said a Bauhinia Variegata Ink & Chemicals spokesperson. “We are the leading ink company in China, persisting in producing environmentally safe printing ink, such as water-based gravure lamination ink, UV ink and non-VOC ink. It can always be successful if it follows market demand. By persisting in R&D of safe ‘green’ inks and providing good products and services, sales turnover of Bauhinia Variegata will be increased in the coming year.”

    Noted for its environmentally friendly products, Bauhinia Variegata Ink & Chemicals introduced a new water-based gravure lamination ink this year.

    “Our R&D center consistently strengthens product development and improvement, as well as ‘green’ inks. Our company developed safe ‘green’ products, such as water-based gravure lamination ink,” the spokesperson said. “Our ‘green’ product water-based gravure lamination ink had a significant breakthrough, and already is in market and receiving excellent feedback from many users.”

    “Tightening regulation and increased industry awareness are driving demand for environmentally-friendly inks throughout Asia,” Saso noted. “We are seeing rapid growth for this technology in China’s printing and packaging fields, and we expect this trend to continue for years to come. As regulation grows increasingly more stringent for emissions control, printers are showing greater environmental consideration in their activities with the installation of VOC treatment equipment and wastewater treatment equipment, among other measures.”

    “Environmental regulations are becoming stricter in Beijing and Shanghai,” Kataura noted. “It is mandatory to install VOC treatment machines and online VOC equipment in the flexible packaging industry. Rigid wastewater management is necessary in the corrugated carton industry, and a more environmentally friendly non-toluene type ink is becoming mainstream in the ink industry.

    “We believe that we will see a rapid prevailing of water-based type ink in the flexible packaging ink market,” added Kataura.

    “Because of the environment protection actions by the Chinese government, there are a lot of challenges for the printing and printing ink industry,” the DIC spokesperson reported.

    “Strict control on the production of printing ink has now expanded not only to big cities like Beijing, Shanghai and Shenzhen, but also in other areas that are not chemical production districts. Crackdown on VOC emissions has intensified and VOC treatment cost is pushing up ink manufacturers’ costs. 
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