From a series of recent transformation layouts of Zhejiang Great Shengda Packing Co.Ltd(603687) (603687. SH), we can see the opportunities and challenges faced by the traditional paper packaging industry. Hu Xin, the company’s secretary, told the associated press that in addition to continuing to cultivate the main business of paper packaging, the company’s main transformation direction will extend to related fields such as pulp molding and high-quality packaging, seek gross profit improvement, and cross-border enter new fields such as industrial interconnection by relying on the experience of intelligent factory construction.
The financial Associated Press reporter learned that the above transformation direction of the company has also been gradually implemented. The first phase of the pulp molding project of Zhejiang Great Shengda Packing Co.Ltd(603687) is expected to be put into trial production this year, and the products are mainly sold to European and American markets. According to Hu Xin, the gross profit of such products is expected to be about 20% – 30%. The layout of boutique packaging has not been finalized. Hu Xin revealed that the company plans to enter the wine bag field through acquisition in the future. In addition, the company is also paying attention to the new tobacco HNB and considering the strategic position of the acquisition target.
Actively embrace the digital economy and promote the upgrading and development of traditional manufacturing industry. “Intelligence” has become the background of Zhejiang Great Shengda Packing Co.Ltd(603687) high-quality development. On January 22, the reporter of the financial Associated Press investigated the company’s smart factory in Xiaoshan, Hangzhou. The relevant person in charge of the smart factory told the reporter of the financial associated press that the company has accumulated experience through the self built smart factory project. Based on this successful project, the company plans to go further in the field of industrial Internet and export solutions through cooperation with professional technical teams.
layout pulp molding card position “no plastic” concept
Pulp molded products have a substitution effect on plastics and foamed products because of their green environmental protection, full degradability and strong functional attributes. Under the background of “plastic prohibition”, pulp molded products have become a new track for papermaking and packaging manufacturers.
Following Shenzhen Yuto Packaging Technology Co.Ltd(002831) (002831. SZ), Shanying International Holdings Co.Ltd(600567) (600567. SH), Zhejiang Great Shengda Packing Co.Ltd(603687) announced in November 2021 that it would invest 500 million yuan to build the first pulp molding base in Hainan, mainly producing disposable tableware such as dinner sectors and paper cup covers. According to the data of prospective industry research institute, China’s pulp molded products can be divided into three categories: fruit / egg tray, industrial packaging and disposable tableware.
Hu Xin introduced that there are many considerations in selecting Hainan. First of all, the main consumption market of pulp molding is in Europe and America, and there is also sufficient supply of raw materials in Southeast Asia. The location of Hainan is conducive to import and export. Secondly, Hainan Province has strict requirements in the field of green environmental protection, and the local pulp molding market may be opened earlier than other parts of the country.
The financial Associated Press reporter noted that both Zhejiang Great Shengda Packing Co.Ltd(603687) and Shanying International Holdings Co.Ltd(600567) layout pulp molding choose to cooperate with gitley environmental protection technology (Xiamen) Co., Ltd. (hereinafter referred to as gitley), which provides production equipment and process support. According to insiders, “gitly has obvious technical advantages in the field of pulp molding. They are the only ones who both manufacture equipment and produce products, so the product stability is better. In recent years, there are many manufacturers in the industry, and there are actually some products with poor quality in the market.”
It is understood that pulp molding is a heavy asset industry, which developed slowly in the past. With the large investment of a group of new entrants, the industry heat has increased significantly, but the economic benefits have yet to be verified. Hu Xin said, “with the project of the company and Shanying put into operation, this economic benefit will be verified, and we are still very confident. At present, paper and plastic tableware is in short supply in Europe and America, and Chinese manufacturers have obvious cost advantages. The gross profit is expected to be 20% – 30%, and the customers bear the shipping expenses themselves. It is a high-quality track in the industry.”
It is worth mentioning that in addition to the cooperation projects, Shanying International Holdings Co.Ltd(600567) and Zhejiang Great Shengda Packing Co.Ltd(603687) have successively increased their capital to become shareholders of gitley. The three companies are expected to maintain long-term cooperation around pulp molding in the future.
embrace the digital economy and rely on smart factories to enter the field of industrial interconnection
Facing the sharp fluctuation of upstream raw materials, the traditional paper packaging business has been under pressure in recent years. In this context, Zhejiang Great Shengda Packing Co.Ltd(603687) has gradually shifted its focus from scale expansion to intelligence. Its smart factory project is also the first national green factory in the industry and is selected as the first batch of future factories in Zhejiang. In addition, the company also uses AI technology to promote cost reduction and efficiency increase in packaging design, printing and other links.
Zhejiang Great Shengda Packing Co.Ltd(603687) the intelligent factory in Xiaoshan, Hangzhou has an annual capacity of 450 million square meters of packaging products. According to the relevant person in charge of the smart factory, the factory will carry out the whole link layout around paper packaging marketing, production and logistics, realize the early perception of the industry trend, and can refine and coordinate the whole process from order issuance, production plan arrangement, material allocation, process management, equipment management, delivery management, logistics distribution to receipt confirmation.
According to the aforementioned person in charge, under the traditional mode, the factory needs to be equipped with more than 300 workers, but now it only needs about 80 people, and the per capita benefit is significantly improved. In addition, the inventory cycle of raw materials was reduced from 45 days to 12 days, and the production cycle was reduced from 2-7 days to 2-7 hours. Both product material consumption and production energy consumption decreased.
“The intelligence level of many factories is semi-automatic, and there is no connection between processes. Therefore, it is difficult to accurately track the whole production process. Our factory has realized full automation, and the background can track the production of each order in real time, so as to maximize the efficiency.” Introduction of the aforementioned person in charge.
The financial Associated Press reporter learned that based on the advantages of intelligence, the factory also has an AI digital virtual factory director, and the staff can communicate with him through voice to understand the production indicators of the factory at any time.
\u3000\u3000 “At this stage, our smart factory has realized the plane digital twin, and may be upgraded to the three-dimensional digital twin in the future, so as to realize the complete virtualization of the real factory, and the managers can remotely monitor the production management of the factory. Based on the experience accumulated in this project, we plan to cooperate with external expert teams to cross-border enter the field of industrial interconnection and export intelligent transformation energy Force. ” Hu Xin said.
Actively embrace the digital economy and promote the upgrading and development of traditional manufacturing industry. “Intelligence” has become the background of Zhejiang Great Shengda Packing Co.Ltd(603687) high-quality development. It is worth noting that Zhejiang Great Shengda Packing Co.Ltd(603687) announced on January 22 that it signed strategic cooperation agreements with Zhejiang digital content research institute, higher Research Institute of University of Electronic Science and Technology (Shenzhen) and higher Research Institute of information technology of Zhejiang Peking University to jointly build a “joint scientific research platform” and study 5g industrial Internet solutions. As the investor, Zhejiang Great Shengda Packing Co.Ltd(603687) is expected to provide a fund of no less than 5 million yuan per year, and the partner will continue to help Zhejiang Great Shengda Packing Co.Ltd(603687) carry out intelligent transformation, set an application benchmark and expand customers.
