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As a petrochemical product, the availability of imported resin for
packaging has been constrained by other calls on foreign currency
expenditure.
BOPP film packing Shrink machine article
In a command economy emerging from more than 30 years of isolation,
priority for foreign currency expenditure is given to essential imports.
While packaging, as an industry, is regarded as a priority sector, a key
factor in state planning consideration has been whether the product can be
adequately produced using an alternative material.
BOPP film packing Shrink machine
an alternative material.
As such, the plastic packaging industry has grown from a relatively low
base. However since 2001, the advantages of light weighting and the
introduction of new film technology (multi-layer, breathable etc.) has
allowed China's plastic packaging industry to leapfrog film technologies.
Furthermore, high-volume plastic package converting can be performed by
relatively small production facilities, thus opening up the industry to
small and medium-sized enterprises. The plastic sector will continue to
experience steady growth well beyond 2008 as China upgrades and gradually
replaces glass and metal with plastic.
BOPP film packing Shrink machine from the
food and beverage
Driven by demand from the food and beverage end-use industries, the
plastic packaging product sector is experiencing average annual growth
levels of well in excess of 10 per cent.
BOPP film packing Shrink machine expectations
This is to be expected. Unlike the paper sector, China's 9,336 plastic
packaging converters have come from a low production base, require more
sophisticated production technology, and compete for feedstock with
'priority industries' in building/construction, household products etc.
These factors contrive to both accelerate and constrain sectoral growth.
BOPP film packing Shrink machine has stabilized
Output growth in China's plastic packaging product sector has stabilized
after a major national investment program was initiated in 1995/96.
Government-sourced investment in equipping the domestic plastic packaging
sector for 2000 was US$2.05 billion (e1.57 billion). The introduction of
the tenth five-year plan (2000-05) heralded a sharp spike in investment to
$2.36 billion, a 13.3 per cent increase over 2000 spending levels.
BOPP film packing Shrink machine growth
Thereafter annual spending growth on plastic packaging equipment
stabilized in the 11 per cent range and will continue to increase at these
levels until beyond 2008.
From 2000-03 China's total equipment investment was more than $10 billion.
By the end of 2008 China has budgeted to be spending more than $30 billion
on its
BOPP film packing Shrink machine industry.
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