CHINA – The Chinese corrugated packaging sector, experienced a massive rise in production values last year with output values in 2008 reaching US$38 billion (RMB264 billion), with board consumption estimated to be in the region of 25 million tons.

Despite the credit crunch that has crippled world trade, overall packaging output in China was valued at US$125 billion (RMB860 billion), driven by the lower cost structures that have been steadily drawing manufacturing and production across all industries to the Mainland. Global manufacturing is expected to continue this trend towards China, and Asia in general, over the next few years as the West continues to struggle with their weakened economies and higher costs, demand for corrugated cartons for transport packaging will continue to grow.

Geographically and economically China is divided into three key production regions comprising several provinces resulting in high concentrations of corrugated packaging production:

• The Pearl River Delta region (Guangdong, Fujian) with a total annual corrugated carton production capacity of 550-600 million tons;
• Yangtze River Delta, (Jiangsu, Zhejiang, and Anhui) - total annual corrugated production capacity of 550 million tons;
• Bohai Sea Area (Beijing, Tianjin, Hebei, and Shandong) - annual production capacity that reaches 500 million tons.

Of the three regions, the Pearl River Delta region is the most developed in terms of corrugated production, particularly Guangdong Province - one of the largest concentrations of corrugated box manufacturing in China. This is due to the fast developing economy in the province itself and Guangdong’s unique location, in the Southern gate of China, making it China Mainland’s southern business center for domestic appliance and electronic device enterprises. The high demand of corrugated boxes from nearby Hong Kong has also had a substantial effect on the Guangdong region and is expected to continue shaping its growth.

In addition, investment in advanced equipment, massive industry scale and the maturity of the industry as one of the first areas to be opened to foreign investments die to its proximity to Hong Kong, have benefited corrugated container manufacturers in Guangdong with product quality regarded as being superior in comparison to other provinces and cities.

Guangdong Province’s high-level corrugated board production lines alone account for nearly one-third of all of China’s corrugators. Out of the more than 5,000 large and small, Hong Kong and foreign-invested, corrugated box manufacturers in Guangdong, over 50 of of which boast of sales revenues in excess of US$15 million.

The Yangtze and Bohai regions are emerging as strong corrugated-producing Chinese regions.

In recent years, the Yangtze River Delta has emerged as the fastest growing region in China for the corrugated industry, a trend that has taken the Yangtze region far beyond its generally perceived borders deeper into South China. Shanghai now has more than 130 corrugated board production lines and boasts ten companies with sales revenue that has eclipsed US$15 million.

Neighboring Zhejiang Province fares even better with 28 paper packaging companies with an annual output value more than US$15 million.

The Bohai Sea Area, in the north, has also been developing rapidly, largely due to increasing food production in the region to support the world’s largest population, in particular the honey and dairy sectors.

The economic development trends across China has driven demand for corrugated containers, market development has also accelerated investment in equipment and technology upgrades resulting in an increase in the number of corrugated board production lines throughout the Mainland. In Qingdao city (Shandong province) alone there are more than 100 corrugators in operation.

As a result of this exponential growth, the SinoCorrugated 2010, rooted in South China will attract the exhibitors and visitors from South China, and the entire Southeast Asia region.

7-9 April 2010
SinoCorrugated 2010
Guangdong Modern International Exhibition Center
Houjie Town
Dongguan
China