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Metal container packaging is expected to come out of the trough

May 02, 2023

20-year review of reform and opening up

The metal container Packaging industry is one of the important categories of the national packaging industry. It has grown rapidly from small to large, from weak to strong, and its products are high-grade packaging materials and are very popular with consumers, especially during the “Eighth Five-Year” period. It is very prosperous, but in recent years it has caused the market to oversupply due to blindly launching, and it has entered a low point. We believe that as soon as the new century arrives and China is entering the WTO, as long as it seizes the opportunity, it will come out of the trough and soon it will usher in a "rising sun."

Twenty years ago in 1979, Metal Containers did not have its own industry organization. At that time, there were only 200 large and small metal container companies in the country, and by the early 1990s it had increased to more than 700. Especially during the “Eighth Five-Year Plan” period (1991-1995), it was the heyday of the development of metal containers. By the end of 1995, it had reached 1,100 and by the end of 1998 it had reached 1300. The number of enterprises in the 20 years has increased by 5.5 times, of which the iron can industry is first place. The main reasons for the rapid development are as follows: First, with the development of related industries such as foods, canned foods, beverages, oils, chemicals, pharmaceuticals, cultural and educational supplies, and cosmetics, the demand for Metal Packaging continues to increase; secondly, foreign investors are targeting China. The huge market, high starting point, large investment, advanced equipment, skilled technology, talented people, and scientific management companies continue to enter, mainly two-piece cans, three-piece cans, spray cans, accounting for a large part of China's metal container packaging industry market Third, township collectives and individuals came into being and launched one after another, accelerating the development of the industry.

According to statistics, the total production volume of metal container packaging products has grown from 350,000 tons in 1979 to 1.7 million tons in 1999, and the total industrial output value has increased from 3.7 billion yuan to 18 billion yuan. The two main indicators have increased about 4 times, accounting for the entire country. 10% of the total output value of the packaging industry. In short, 20 years of reform and opening up have made brilliant achievements. Despite the downturn in recent years, the difficulties are temporary.

At present, the general situation and development trend have been booming since the 1990s and 1991-1994. After 1995, due to macro imbalances, a large number of foreign-funded enterprises entered and blindly launched the township and township enterprises caused the market to oversupply. In particular, in recent years, some companies have stopped production or have stopped production all the time, resulting in an increase in losses. Some companies have used unfair competition to compete against each other and compete unorderly, causing artificial market chaos. This situation will be further improved as the government tightens the efforts to rectify market chaos and strengthens the functions of industry association management. In 1999, it was better than 1998, and it will be better in the future.

The development of related industries will push the metal packaging industry to the bottom. With the accelerated pace of work, in order to get rid of the hardships of going into the kitchen, the living habits will change, and convenience foods will enter the family. In 1997, the annual output value of China's food industry reached more than 530 billion yuan, or 64.1 billion U.S. dollars, which is the highest in the nation's light industry. However, in many food areas, there will always be iron cans for some products.

In recent years, the beverage industry has developed rapidly, with a variety of products and brands. In China, the beverage industry started late. In 1982, the annual output of beverages in China was only 440,000 tons, and the average annual per capita was less than 0.43 kg. In 1992, it reached 4.2 million tons, and the annual average was 4.4 kg. By 1998, the national beverage output had been It has reached 12 million tons and its annual average is 9.6 kilograms. In other words, from 1982 to the 16 years of 1998, the growth rate was more than 20 times. The main reason for the rapid development was the increase in counterfeiting efforts, the increase in variety, and the improvement in quality, as well as the emphasis on the nutritional value of beverages and the emergence of many brands. Both have promoted the great development of China's beverage industry. Although plastic bottles, glass bottles, Tetra Pak and other packaging occupy a certain share in this area, two-piece cans and three-piece cans still dominate.

Canned food industry in China began in 1906 when Shanghai Taifeng Foods was the first food cannery in China. Since then, some workshop-style canneries have been established in a few cities. In 1949, the country’s canned output was only 484 tons, and China’s canned food was a new industry that had gradually developed since 1953. It has become one of the major varieties of the food industry. In 1953, there were only more than 20 canneries in the country. By the end of 1997, it had grown to 1,495 canned enterprises. The annual output reached 2.54 million tons. The highest year was 1995, when it reached 3.05 million tons. The export volume reached 860,000 tons. In recent years, the export volume averaged about 700-800,000 tons per year. Its varieties are

Mushrooms, asparagus, bamboo shoots, horseshoe, broad beans, oranges, white peaches, luncheon meat, steamed beef, steamed pork, tomato sauce, etc., each export volume is more than 10,000 tons, its export volume ranked first in the world. It is estimated that by the year 2005, the total amount of canned food in the country will reach 4.5 million tons, and the export volume will reach 1.2 million tons. In 2010, it will reach 8 million tons. Among them, metal cans account for an important share, and tin cans are the main packaging for export cans. According to relevant information, the canning industry consumes about 350,000 tons of Tinplate annually.

In 1999, the national output of beer reached 20 million tons, becoming the second largest beer producer in the world. Its packaging is mainly bottled. Among them, about 4% of beer use two cans. If 4% is calculated, 800,000 tons use two cans. The annual demand is about 2.5 billion. Aluminum two-piece cans have the advantage of long shelf life, convenience of carrying and opening, and it is expected that with the increase of consumption level, the market share of metal cans will gradually increase.

Oil and chemical industry, petroleum products, pharmaceuticals, culture and education, cosmetics and other industries are bound to rise with the development of the national economy. The demand for metal barrels and tanks in these industries will also double.

Despite these advantages, there are also some unfavorable factors. After China's accession to the WTO, it will face more fierce competition at home and abroad. The author takes it for granted that after the WTO accession, the advantages outweigh the disadvantages of the packaging industry. What are the advantages? We believe that although foreign goods have entered the WTO, it will be uneconomical for all contents to be filled with heavy cans and transported into China. It will only be a temporary phenomenon. In the long run, foreign merchants will gradually set up factories in China. As long as the quality of empty cans meets foreign requirements, they will still use domestic cans. Second, due to the reduction of tariffs, the import prices of tinplate, aluminum materials and related auxiliary materials will inevitably decrease, which will help the cost of the domestic tank industry decline. The unfavorable factor is that if our product quality fails to meet the requirements, they may still be able to fill in empty containers from abroad to fill in the domestic market. This situation will have, but the amount will not be great. The original domestic joint ventures and state-owned enterprises can be associated with it, but the equipment is poor, and small enterprises with poor product quality are difficult to survive.

The development strategy of the new century looks at the relevant industries to increase production from the current situation, which may drive the metal container industry out of the trough. After entering the WTO, the competition becomes more fierce, and the metal container industry must “win by quality”. The domestic counterparts should not bargain with each other again, and they must get rid of all the flames and smoke. The enterprises in the same industry should consciously abide by the principle of self-regulation of prices. We are ready to invite leading enterprises in the industry and hold forums to discuss price coordination.

After China's entry into the WTO, domestic companies and foreign companies will compete on the same starting line in the world economic arena. The key depends on the overall strength, the organization of large-scale groups to be competitive, can no longer take the "small and all" "big and full" approach, should gradually move toward specialized production, development of packaging brand products. Must be high-quality products, reasonable prices, good after-sales service and have the strength of the group before they can be competitive internationally. To this end, we should take the path of Shanghai Meilin Zheng Guanghe's strong cooperation.

With regard to the issue of western development, the central government has proposed a strategy for the development of the western region and accelerated the development of the western region, which is of great significance for expanding domestic demand and promoting the sustained growth of the national economy. The packaging industry is no exception. With the advancement of many related industries such as the food industry, canned industry, beer industry, and oleochemical industry, the metal packaging industry should have an advanced ideological preparation. In the eastern region, the packaging industry is intensive, and there is less glutinous rice. Experts of insight should advance to the west. However, the packaging industry needs to conduct investigations and research. It is necessary to closely follow companies that need metal packaging barrels and tanks, and they can cooperate with them or join joint ventures. The next step is for the Association to join the large enterprise groups with aspirations from the west to conduct research in the western region and seek assistance from the local community. The packaging association conducts on-site inspections and does not play any uncertainties.

The introduction of talents is even more important. At present, there are fierce competitions among domestic and foreign talents, science and technology, and education. When introducing high-quality talents, we should also strengthen the cultivation of cultural and technical qualities for people of lower quality, and take short-term training. In order to improve the quality of all employees, we must further integrate the methods in colleges and universities.

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