Striking Gold in the 500,000-600,000-Ton BOPP Pre-Coated Film Market: the Plant Plans to Go Public in 3-5 Years!

[China Packaging Network News]

Qiming New Material is one such company producing this kind of film. Information from the Wenzhou Municipal Science and Technology Bureau shows that Qiming New Material is a national high-tech enterprise, and the polypropylene film it produces

is a new material. Recently, Wenzhou launched an action plan for cultivating five major strategic emerging industries, and new material producers such as Qiming New Material are targets for key cultivation by Wenzhou in the future. According to the plan, by

the year Wenzhou is to be built into a domestic new material specialty industrial base with considerable influence, with the total output value of the new material industry exceeding

billion yuan, with an average annual growth of

No worries about product sales, but orders must be paid for in advance

In recent years, we have never worried about sales; if you order our film, you may have to wait a month before it is available.

said Zhuo Ruyang. At the same time, customers placing orders with Qiming New Material must pay in advance.

We have never done business on credit.

Today's Qiming New Material is a Wenzhou-merchant returnee enterprise. When the company was founded, it served the local plastic weaving industry in Xiaojiang, producing ordinary film supplied to plastic weaving companies to laminate on the outer surface of woven plastic bags, serving only simple functions such as waterproofing.

Obviously, ordinary woven plastic bags are generally cheap, and the film on their surface is not demanding, so competition in this segment is fierce and profit margins are thin. As a result, the company's investors decided to improve film quality and open new markets with the help of Wenzhou's packaging industry, and invested

more than 100 million yuan to introduce an advanced polypropylene film production line from Germany.

At that time, only two companies in China had such transparent film production lines.

revealed Chen Kai, chief engineer of Qiming New Material.

Packaging products made with pre-coated film are attractive and refined, and are very popular with companies producing mid- to high-end packaging products.

In these two years, long lines of trucks have queued outside our factory waiting for film products to come off the line, and some customers have to wait

about ten days before there is stock.

said Lin Yan'an, head of the Zhejiang Qiming Functional Film Research Institute.

For this reason, Qiming New Material, in

more than 100 million yuan, ordered a customized production line from a German equipment manufacturer. However, this time the company decided not to make transparent

pre-coated film, but matte

pre-coated film, which competitors at the time had not yet touched, and in

the year successfully brought matte

pre-coated film to market.

Pre-coated film matched the changing demand for packaging products on the market, was quickly sought after, and the production lines ran at full capacity.

On that day, a Wenzhou Daily reporter, accompanied by Chen Kai, visited the two production lines of Qiming New Material. In the closed production workshop, the two lines run non-stop, respectively

micron transparent and matte

pre-coated film; two rollers weighing four tonnes each wind up these two types of film

about ten thousand meters later, they are sent to the back end to be cut into small rolls of various widths, then loaded onto trucks waiting outside the workshop and delivered to customers.

Continually breaking thickness limits, Wenzhou-made film leads China

Qiming New Material's transparent

pre-coated film is in short supply, mainly because it is thin and has small thickness deviation. Because a large thickness deviation causes, after the film is produced,

a film meters wide to have at each end

meters of defective product, and when laminated to packaging material it may also cause unevenness, affecting the quality of the packaged product.

According to the requirements of the German polypropylene film equipment manufacturer, the line is suitable for producing

micron thick film with a thickness deviation of

microns. At the time, similar domestic manufacturers could basically mass-produce

products of over microns in thickness. To make its products more competitive, Qiming New Material's R&D staff started with raw material formulations and, together with the Ningbo Institute of Materials Technology and Engineering of the Chinese Academy of Sciences, kept challenging thickness limits, becoming the first in the industry to break

micron thickness and reduce the thickness deviation to

At present, domestic peers can only produce

micron-plus thick products, while our main output is

micron thick products, and we can now also successfully produce

micron thick products.

Lin Yan'an said that making film thinner requires overcoming static electricity and raw material ductility issues; otherwise the products will stick together due to static, and the yield rate will be low,

Our formulation can achieve in production

said Zhuo Ruyang. For products to lead peers, a company needs a good market sense, to discover demand from market needs, and then break through on technology.

Our decision to add a matte film production line came from an opportunity found in the changing needs of surrounding packaging companies, and no peer has yet entered this area.

Matte pre-coated film and transparent

pre-coated film differ only in light transmission, but are completely different in production technology and raw material formulation. Chen Kai said, transparent

pre-coated film is formed by combining three layers of film. If the transparent film process is used to produce matte film, there will be many light-transmitting spots and a low yield rate, so a four-layer film combining technology was adopted, with the middle two layers being matte film, solving the light-spot problem.

Increasing the number of film layers requires major adjustments in both raw material formulation and production process.

To better carry out R&D on production processes and raw material formulations, Qiming New Material, in

the year established a functional film research institute, attracting technical talent from all sides to overcome technical difficulties. The institute has now been upgraded to the Zhejiang Qiming Functional Film Research Institute.

At present, we are developing colored

pre-coated film and have successfully developed red

pre-coated film, and will develop films in more colors as the market demands, as well as anti-slip film and other new niche film products.

In fact, Qiming New Material's

pre-coated film's competitiveness lies not only in being thin, but also in lower cost than peers. This is mainly because the raw materials differ from peers, and energy consumption in production is also lower

Through technical upgrading of production equipment, when plastic pellets are fed into the equipment to melt and stretch, the heating temperature is considerably lower than that of peers. Electricity consumption in film production accounts for a large part of cost, and some similar domestic film companies have moved their factories to Southeast Asian countries to reduce power costs.

Extending tentacles downstream, absorbing

At present, market demand for

pre-coated film has expanded from several tens of thousands of tonnes a year a few years ago to five or six hundred thousand tonnes, but packaging companies' demand for the corresponding films is segmented, requiring such film producers to make diversified products. In fact, once such film companies produce diversified products, costs are hard to reduce, and packaging companies will not purchase such products.

Even with one more production line, Qiming New Material's annual capacity would be less than

ten thousand tonnes, and annual output value only

around billion yuan, making it impossible to enter the capital market, let alone further expand and strengthen the company.

The film industry requires large investment, but the payback period is relatively long.

Zhuo Ruyang said he found that many of his customers are doing well in niche fields, and some companies are even

in their sub-industry, yet cannot grow bigger and stronger due to issues such as market capacity. Therefore, building the Qiming Functional Film Industrial Park became Qiming New Material's next plan: by joining forces with leading companies along the industry chain and developing as a group, Wenzhou's packaging industry can break through.

On Zhuo Ruyang's desk, the planning drawings for the Qiming Functional Film Industrial Park have already been bound into a booklet. It is an extension of the current Qiming New Material plant area, covering

mu of land, and will bring in various downstream packaging companies

in total, whose combined annual output value can reach

We will develop dedicated film products for these companies, and can even customize film products, making their products more competitive and helping them become

said Zhuo Ruyang. The Qiming Functional Film Industrial Park has gathered a group of

, which enables companies with packaging needs to achieve one-stop procurement, while also enhancing the industry voice of these packaging companies in the park. Of course, Qiming New Material hopes that the companies in the park

will ultimately further

For promising companies in the park, we are willing to acquire equity through various means, then go to the capital market, and use the capital market to develop deeper into the industry.

In Wenzhou's strongly promoted listing

program, Qiming New Material has been included in the list of companies planning to go public.

the year as the base year, the company plans after

years of development to successfully go public.

Zhuo Ruyang looks forward in this way.

——This article is reprinted from China Packaging Network (pack.cn). Original link: http://news.pack.cn/show-352356.html