Global ink industry mergers and acquisitions slowed down overall growth trend

In recent years, the global ink manufacturing industry has experienced turbulence and mergers, but it still maintains a steady increase, but the overall growth trend has slowed down. Among them, the growth rate of the ink industry in Japan and Germany is faster. Among the top 20 global ink sales in 2004, seven were Japanese companies, which accounted for about 60% of global ink sales. There are also seven German companies, accounting for 15% of global ink sales.

At the same time, the prices of crude oil and petrochemical products continued to climb, and the supply of major raw materials was in short supply, which led to the increase in the cost of ink production and the general decline in the profits of ink companies. Many ink companies are in a state of low profit or even losing business. Raising the price of ink is already a frustrating move for ink companies and companies. but. Judging from the recent situation, the price of raw materials will not drop significantly in a short period of time. Each ink company should take active measures, such as adjusting production processes and intensifying product innovation.

Inspiring mergers and acquisitions between ink companies

With the continuous intensification of competitive pressures, mergers and acquisitions between ink companies have emerged and formed a new industry structure.

Daini Ink Chemical Industry Co., Ltd. (DIC) has become the world's largest ink company by acquiring Sun Chemial and Coates Lorille US.

After Flint,Ink annexed SACRAMEN-1-O and NKCOMPANY in 1999, it acquired German Gebr in 2002. SchmIdt's business in Europe and Canada. In March of 200S, Flint acquired the global thermosetting and coldset ink business of SCPA, Switzerland. In exchange, Sikhby received global operations for Flint Banknotes and security inks for bill printing.

In 2004, BASF Pringting Systems merged with ANI Prting Inks to establish Xsys Printing Solutions.

On September 30, 2005, Xsys Printing Solutions completed the merger with Flint Ink Co., Ltd., which will form an ink production giant with annual sales of US$2.6 billion, second only to the Greater Japan/Sun Chemical Complex.

In September 2005, Siegwerk completed the acquisition of the Sikhaba Packaging Packaging Division. Through this acquisition. Shengweike became the second largest packaging ink manufacturer in the world and ranks among the world's top five ink manufacturers.

In October 2005, Amber Group announced the acquisition of more than 50% of India's Micro inks. At present, the acquisition is still in the approval stage and is expected to be completed in January 2006. Once the acquisition is completed, Amber Group's annual turnover will reach US$100 million, making it the fourth largest manufacturer of printing inks and glosses in the world.

M&A and cooperation have improved the development capabilities of multinational ink companies; consolidated the core competitiveness in technology and achieved complementary advantages; further expanded the market; realized joint procurement, and eased increasing cost pressures.

Ink giants compete in China

Since the end of the last century, with the ink industry in China has been in a trend of rapid development, ink production has been ranked fourth in the world. The world's ink giants can not withstand the temptation of the Chinese market and have established and expanded their production bases in China.

Japan's Toyo Ink Co., Ltd. (TOYOINK) has invested in Jiangmen Toyo Ink Co., Ltd., Tianjin Toyo Ink Co., Ltd., Shanghai Toyo Ink Co., Ltd., Zhuhai Toyo Ink Co., Ltd., and Toyo Ink (Shenzhen) Co., Ltd. in China. In 2004, Shanghai Toyo Ink Manufacturing Co., Ltd., which was newly invested in China, has officially opened.

Dainippon Ink Chemical Industry Co., Ltd. established ink production plants in China include Shanghai DC Ink Co., Ltd., Shenzhen Shenri Ink Co., Ltd., Taiyuan Gaoshi Laurie Ink Chemical Co., Ltd., and Guangzhou (Gao) Ink Co., Ltd., Shenzhen Gao's Co., Ltd. Laurie Ink Co., Ltd. and Yunnan Di Aisheng Ink Co., Ltd.

Sakata INK established a Maoming ink factory to produce offset printing inks and a Nansha ink factory to produce printing inks for metal cans in China. In 2004, it also invested in Sakata Ink (Shanghai) Co., Ltd. in Shanghai.

In 2004, Flint Ink (Beijing) Co., Ltd., a joint venture of Flint Ink Co., Ltd. in Beijing Daxing, was formally put into production.

Domestic ink companies actively respond

Since the reform and opening up, China's printing ink industry has sustained, stable, and rapid growth, and the year-on-year growth rate of annual production and annual consumption have remained above 10%. There are currently more than 400 ink manufacturing companies in China, approximately 70:6 in Beijing, Shanghai, Tianjin, Zhejiang, Jiangsu, Guangdong, Shandong and Hebei. But there is no ... - the output of each industry can reach 10% of the total national ink production. Domestic ink companies generally have many problems such as small scale, lack of talents, insufficient funds, low R&D investment, etc. The technological innovation capability is not strong, and the production technology lags behind the world level.

The large-scale entry of foreign capital has led to an unprecedented increase in the production capacity of China's ink industry, but at the same time it has also brought great impact on domestic small and medium ink companies. How to be invincible in the cruel market has become a serious issue for domestic ink manufacturers. In order to compete and compete with foreign ink giants, domestic ink companies must understand their own strengths and weaknesses, avoid weaknesses, actively participate in the competition to seize opportunities, learn to cooperate with foreign ink giants, and jointly innovate; try to expand the international market, especially the third Markets of countries in the world; improvement of innovation capacity and management level, gradual expansion of scale, and further increase of market share.