Talking about the Advantages and Disadvantages of Ink Enterprise's Development towards Giant

In recent years, ink companies have merged continuously. CVC Capital Partners has acquired Flint Ink after a successful acquisition of BASF's printing ink business.

Flint Ink is the world's largest private ink manufacturer. XSYS Printing Solutions was formed by the merger of BASF Printing Systems and ANI Printing Inks. The merger of the two companies will help strengthen the core competitiveness of these two companies in their respective fields. At present, the two companies can perfectly combine their businesses in North America and Europe through complementary products and complementary sales systems. The merger of the two companies is a good thing for users, employees of the company, and shareholders.

CVC's Xsys ink company is the third largest ink manufacturer in the world, and Flint is the second largest ink manufacturer in the world. After the merger, an ink production giant with annual sales of 2.1 billion euros will be formed, second only to the Great Japan/Sun Chemical Complex with annual sales of 3.7 billion euros. Flint's business development in Asia can help the merged business entities gain new opportunities in the fastest growing markets in the world. In particular, Flint has invested in China as the first step in its occupation of the Asian market. This merger will inevitably have an impact on China's ink market, posing a threat to domestic ink companies. Ink companies have become a trend with this kind of combination of strengths and giants, which will affect the living space of relatively small Chinese ink companies. For Chinese ink companies, this acquisition seems to do more harm than good.

As the world’s fourth largest ink producer, China’s ink production accounts for about 6% of the world’s total. At present, China has a total annual production capacity of printing ink of about 250,000 tons, the output is second only to the United States, Japan and Germany. The total amount of China's ink market is RMB 5 billion per year. However, there is still a gap between the overall level of production, quality, and variety of ink in China compared with other advanced countries in the world, and there are deficiencies in printability (such as transferability, water resistance, and high-speed printability). The consistency is not satisfactory and it cannot meet the needs of high speed and high quality printing. Some products still need to be imported. Domestic production of ink raw materials cannot be synchronized with ink production in quality, quantity and variety, and some raw materials still rely on imports. In addition, the development of special special anti-counterfeiting inks is relatively slow, and it still cannot meet the needs of the development of packaging printing and anti-counterfeiting printing. The electronic ink required for digital printing cannot be produced at home.

After joining the WTO, foreign ink companies have entered the Chinese market one after another. The ink companies that set up production bases in China are increasing. China's ink industry is facing fierce competition. For example, Flint of the United States established an ink factory in Daxing, Beijing. News inks will be used as the mixing center for heat-curing inks; Japan’s Daikin Ink Co., Ltd. (DIC) will invest exclusively in the construction of organic pigments and printing ink factories in Nantong, Jiangsu; Japan Sun Ink Co., Ltd. will establish an annual output of 3,000 tons in Suzhou in 2003. The ink factory became the fourth overseas production base of the company following the United States, South Korea, and Taiwan Province of China; Japan Sakata Ink Company also established an annual output of 3,600 tons of ink factory in Shanghai in 2003. The products are mainly gravure inks. This year, the company also established a factory in Maoming, which mainly produces offset inks.

The domestic ink industry must seize opportunities, meet challenges, strengthen technological innovation, management innovation and institutional innovation, and make new contributions to the development of China's ink industry. The overall goal is to develop in the direction of “high-speed, multi-color, fast-drying, non-polluting, low-consumption, and standardization”; to increase the degree of adaptation of ink products to the printing process and print quality requirements and to increase their scientific and technological content, especially to adapt to packaging The printed matter is facing high-tech, multi-variety, colorful, aesthetic and artistic development needs, optimizing the product structure, and developing more high-quality printing inks; large, medium, and small ink manufacturers will need to further deepen reforms and optimize their portfolios. To develop in the direction of reasonable regulation, to further enhance the awareness of "standardization and environmental protection", we must integrate with the ISO9000 quality system, expand the domestic ink market, enter the international market, and gradually adopt environmentally friendly and energy-saving ink products. Old products; To enhance the industry's ability to use ink pigment resins and additives; To continuously strengthen the technical training of ink personnel, improve professional quality, to adapt to the use of a variety of foreign advanced equipment, product technology standards and high automation Technical requirements for production.

Source of information: pack.cn