Opportunities and Challenges in the Printing Equipment Industry

The 2016 National Offset Printing Plate Working Conference was held in Taizhou International Hotel on November 9. All colleagues from the offset printing plate industry from all over the country gathered together to review the fruitful results of the offset printing plate industry over the past year and exchange experience. Discussing the development prospects of the industry, and a clear understanding of the ups and downs that may occur on the way forward, are important for us to adjust our structure, meet challenges, and strengthen our confidence in the future. Since 2010, the development of the offset printing plate industry has entered a transitional period. During this period, the progress of printing technology has caused great challenges to traditional products. The downward pressure on foreign economies has become increasingly obvious. The domestic economy has transitioned from a high-speed growth period to a stable growth period. The offset printing plate industry has also entered a low-speed development track from an ultra-high-speed development period. The transition period of our industry is undoubtedly very difficult, but it is full of hope. The offset printing plate industry has rebounded to a certain extent in 2015 over the previous year. Although the growth rate is low, under the current economic environment, whether it is in the printing equipment industry or in the entire printing industry, it should be considered basically satisfactory. .

　　Review and analysis of the situation of the offset printing plate industry in the past one or two years:

　　According to the statistics of more than 80 production lines nationwide by the Printing Equipment Branch of the China Printing and Equipment Industry Association: In 2015, the total output of offset printing plates nationwide was 397 million square meters, an increase of 2.96% over 2014. Among them, the production volume of PS version was 82 million square meters, a decrease of 25.98% compared with 2014; the production volume of CTP version was 315 million square meters, an increase of 14.63% compared with 2014. The actual total sales volume of offset printing plates was 385 million square meters, an increase of 4.23% over 2014. Among them, the sales volume of PS version was 80 million square meters, a decrease of 22.39% compared with 2014; the sales volume of CTP version was 305 million square meters, an increase of 14.52% compared with 2014. The annual sales amounted to RMB 7.648 billion, an increase of 3.03% over 2014. Among them, the sales of the PS version was 1.413 billion yuan, a decrease of 28.17% from 2014; the sales of the CTP version was 6.235 billion yuan, an increase of 14.29% from 2014. The annual export volume of offset printing plates was 154 million square meters, an increase of 12.01% over 2014.

　　 my country's offset printing plate industry started in the late 1970s and early 1980s. Over the past 30 years, it has grown from scratch and developed rapidly. During the fastest growing decade, the average annual growth rate of production can reach more than 20%. At the peak stage, there are nearly 80 production enterprises, nearly 100 roll production lines, dozens of single sheet production lines, and an annual production capacity of more than 400 million square meters. In addition to meeting domestic demand, the products are also exported in large quantities, and the products are sold in more than 100 countries and regions all over the world. At present, my country is the country with the largest production volume of offset printing plates in the world.

　　 After 2010, the rapid development of the domestic computer direct plate-making system has driven the technological upgrading of the offset printing plate industry, and technological progress has brought about the development of the industry. Before 2010, the offset printing plate industry was dominated by PS plates, and CTP plates accounted for only more than ten percent, and they were basically the domain of large foreign companies. After 2010, domestic enterprises have gradually entered the CTP market, and the proportion of CTP plates in offset printing plates has increased year by year. The market demand for PS version is declining year by year. After the production and sales volume of CTP version surpassed that of PS version in 2012, the output and sales volume of CTP version in 2013, 2014, and 2015 all increased significantly compared with the previous year. Although the growth rate cannot keep up with the annual growth rate of more than 40% in 2010 and 2011, it is still an exciting achievement relative to the sluggish printing market and other printing equipment products. The reason for the gradual decline in growth rate is that the development peak of the CTP plate making system has passed and the newly installed capacity of CTP plate making machines has decreased. This is the main reason that affects the slowdown in the growth rate of CTP plate production and sales. The second is that the base of plate making machines is large. , It will also have a certain impact on the percentage of growth. From the perspective of domestic consumption, in recent years, CTP plates have shown a trend of linear increase, and the proportion of all offset printing plates used: only 15% in 2008; 30% in 2010; 56 in 2012 %, more than half. It was 69% in 2013, less than 80% in 2014, and nearly 90% in 2015. It can be said that my country's CTP plate has occupied a dominant position in the offset printing plate material, and the technology upgrade of the offset printing plate industry has basically been completed. From the perspective of usage, in this field, we are already close to the level of printing developed countries.

　　 In 2015, the production, sales and sales of the PS version continued to plummet, and the production and sales have fallen below the 100 million square meter mark, and the main sales direction is export. The future export volume of PS version is expected to remain stable at a certain level.

　　 The picture below shows the domestic PS version and CTP version production changes from 2005 to 2015: Unit: 10,000 square meters

　　 In recent years, compared with the peak period, the number of companies in the offset printing plate industry has been reduced by more than 20, and production lines have been reduced from nearly 100 to more than 80. The shutdowns are basically low-speed production lines that are old, old, and technologically backward. From the perspective of technological progress, it is a good thing for the development of the industry. It will promote the improvement of the overall technical level of the industry and the improvement of the quality level, which is also the inevitable development of the industry. The technical equipment level of the entire industry has improved, the scale of large enterprises has become larger and larger, and the industrial concentration has become higher and higher. Three years ago, there were 7 companies with an annual output of tens of millions of square meters, but now it has almost doubled. In 2015, the total output of the top 10 companies in annual output accounted for nearly 3/4 of the total domestic output. The output of the remaining 30-odd enterprises only accounts for a quarter of the total domestic output. In history, there have been more than 80 companies engaged in plate production. In 2015, there were fewer than 50 companies. The rest were discontinued or switched to production. Those who discontinued or switched to production were all small companies. The total output of the whole industry has not decreased, and the concentration is getting higher and higher. The trend that big companies are getting stronger and smaller and weaker is getting harder and harder. This objective law of modern industrial development seems to be more obvious during the difficult period of economic development, or the slowdown in economic development has promoted the speed of industrial concentration. In the next few years, the trend of market concentration will become more obvious.

　　 In terms of the varieties of CTP plates, the current domestic CTP plates include thermal plates, photosensitive plates, UV plates, inkjet plates and all other types. The double-coated version, which is popular in the market, has also grown significantly. According to statistics from the Printing Equipment Branch of the China Printing and Equipment Industry Association, in all CTP plate material sales, thermal plates account for about 64%, purple laser plates account for 7%, UV---CTP plates account for 28%, and other types Less than 1%. At present, in the CTP market in my country, the thermal version is still the mainstream, and the UV-CTP version is developing rapidly, showing its strong vitality to adapt to the Chinese market. In the future Chinese market, multiple plates will coexist.

　　 Offset printing plate has always been the product with the highest export value and the largest export proportion in my country's printing equipment category. Except for the decrease in sales in 2009 due to the international financial crisis, the total export volume in the past ten years has increased to varying degrees. In 2015, total exports accounted for 40% of the industry's total sales, reaching a historical peak. The potential of foreign markets is huge, and exports will continue to be an important driving force for the development of our industry in the future.

　　 Offset printing plates have achieved brilliant results in China, but the more difficult macroeconomic situation has also had a greater impact on the development of our industry. How to objectively judge the status of the printing and printing equipment industry, how to develop in the future, how to adjust the industry structure, and solve the problems that exist in the industry development process requires us to have a very clear understanding, serious thinking and analysis, and implementation of effective countermeasures. .

　　 In recent years, downward pressure on the economy has increased. The printing industry, including the printing equipment and printing equipment industry, has also spoken strongly about the cold winter. But detailed analysis is not always the case. For example, the total production volume and total sales volume of the entire equipment industry as printing consumable materials have not decreased, such as printing inks, printing papers, blankets, flexographic plates, offset printing plates, etc., which have increased in the past two years. This can also confirm from one aspect that the total amount of printing has not decreased, but the growth rate has dropped a lot. If the total amount of printing is not reduced, the days of printing consumables will not be too sad. In comparison, the printing equipment industry has encountered greater difficulties. When the economic development speed is slowing down, printing companies do not purchase and update equipment, and printing machinery is almost Has reached the bottom. We have been accustomed to the double-digit growth that has lasted for many years, and now it has dropped below 5%. Some small industries or companies may only have a growth rate of 2% to 3%, which makes it difficult to survive. It should be said that although the overall situation of the printing industry is not good, there has not been a cliff-like decline. Compared with some difficult industries, we should not be too pessimistic. If the situation is not good, there will inevitably be a reshuffle of the industry, and this reshuffle is also a double-edged sword. On the one hand, some companies with backward technology, shortage of funds, and unstable product quality will face the risks of poor product sales, poor turnover, and corporate bankruptcy. This is actually a process in which the market is forced to eliminate outdated production capacity. On the other hand, some companies with leading technology, strong funds, good at innovating and adapting to market needs can still embark on a road of rapid development under difficult circumstances. In recent years, the speed of industry concentration in the offset printing plate industry has become more obvious, which is a good illustration. The process of industrial adjustment is painful. We have experienced brilliance, but there will also be downturns in wave-like development. The key is to build confidence, persevere forward, and face challenges bravely.

　　 The development of the industry faces two outstanding problems: one is overcapacity, and the other is environmental protection.

　　 Overcapacity is the biggest problem in the printing and equipment related industries. In recent years, a prominent phenomenon of offset printing plates is the decline in prices, and it continues to decline. Some time ago, there were reasons for the decline in raw material costs, but more of it was competition caused by overcapacity. Due to overcapacity, production capacity is greater than the actual needs of the market, resulting in vicious competition centered on price competition. Competition, including price competition, is inevitable in a market economy, and this phenomenon is difficult to completely change in the short term. At present, the market quotations of many companies are close to cost prices, and some products are even lower than cost prices. Before adopting a low-price policy to maintain and expand market share and maintain appropriate profits, I would rather adopt the previous policy. Do you know that such a policy is tantamount to drinking poison to quench thirst in the long run, that is, it harms the overall interests of the industry and is also very detrimental to the development of the enterprise itself. The inability of enterprises to obtain reasonable profits or the continued decline in profits will cause a major blow to the development of enterprises and the industry. This is what everyone in our industry does not want to see. Some companies have proposed that they hope that industry associations will come forward and set market access or similar thresholds to restrict or reduce competition. However, this is obviously contrary to the basic laws of the market economy and is not in line with current national policies. Market competition includes price competition, which must be regulated by the market itself, and no external force can replace it. However, we still hope to be able to establish a joint action based on the conscious and voluntariness of the enterprise and the goal of safeguarding the fundamental interests of the enterprise and the industry. Of course, fundamentally speaking, it is still necessary to gradually eliminate outdated production capacity and establish a market environment that basically balances supply and demand, fair competition, and a healthy and orderly market. But this does require a fairly long process. This long-term goal is not inconsistent with our phased joint actions. We should use our wisdom to find a suitable point of fit to deal with the current situation. The low-price competition brought about by overcapacity affects not only the domestic market, but also foreign markets. The decline in the prices of export products has also triggered trade protections in importing countries and filed anti-dumping lawsuits, which affected export trade and made it more difficult for us to develop international markets. In the past, Brazil, Turkey, India, Taiwan and other countries and regions filed anti-dumping lawsuits. Recently, South Korea's anti-dumping investigations have taken place, which forced us to respond.

　　In the supply of the main raw material, aluminum plate base, the production capacity has also increased significantly in recent years, and there has been a phenomenon of oversupply. The production capacity of the aluminum processing industry to produce printing plates has greatly exceeded the actual demand, and the processing fee has dropped from 8,000 to 9,000 yuan per ton to 4,000 to 5,000 yuan, or even 3,000 yuan. Forcing some companies to abandon or reduce supply. We still reiterate the old saying: We hope that the aluminum plate base processing industry should accurately estimate the industry demand, correctly judge the characteristics of the industry, rationally evaluate the investment income, and avoid the losses caused by blind investment.

　　Environmental protection is a serious issue facing the industry in the next few years

　　 In recent years, the problem of reducing pollution emissions and managing environmental protection has become increasingly prominent. During the production and use of offset printing plates, some waste liquid, waste gas, and waste residues need to be treated. In the construction of the project and daily production, all regions have strengthened the audit and supervision. In the future, we need to increase investment in environmental protection facilities to ensure that waste liquid and waste gas emissions from the production process are eliminated, and the waste residue treatment must comply with regulations to meet environmental protection emission requirements. The whole industry must work hard to raise awareness of environmental protection, and must not have the slightest slack or fluke in dealing with the three wastes. Environmental governance must be regarded as a great cause for the country and the family, which will benefit the present, the future, and the benefit of future generations. From the perspective of industry technology development, it is necessary to develop chemical-free plates that meet the requirements of environmental labeling products as soon as possible and bring them to the market as soon as possible. At present, domestic enterprises started late in developing the processing-free version, and most enterprises have not invested yet. It is hoped that enterprises will increase their development efforts and develop new green and environmentally friendly plates suitable for market demand as soon as possible. Following the promulgation and implementation of the "Environmental Protection Law" and the release of the pilot measures for the implementation of VOC emissions by the three ministries and commissions of the State Council, the entire printing and printing equipment industry has been greatly shaken. At present, sixteen or seven provinces, cities, and autonomous regions have introduced charging standards and implementation measures. The printing equipment industry should be the source of green printing, pollution control, and environmental protection, and we should make our own contributions to this.

　　 How will the offset printing plate industry develop in the next few years? How do we grasp the direction of development?

　　 1. In the next few years, the rate of industrial concentration may be faster than we thought. This year and next two years, some companies may stop production or switch production.

　　 Second, the pattern of traditional printing and digital printing. Judging from the situation at this year's Drupa Exhibition and the Shanghai All India Exhibition, the display of traditional offset printing presses has rarely or do not occupy a prominent position. More are digital printing equipment and post-press equipment. But this does not mean that traditional printing such as offset printing has declined, but only that the technology of traditional offset printing has been very mature, and there is no need to do more shows. Digital technology is updated very quickly, new bright spots continue to attract attention. However, the proportion of traditional printing in all printing still dominates, and digital printing only accounts for 2-3%, playing an auxiliary and supplementary role. In the next five to ten years, this pattern will not change. We should build confidence in the industry's prospects.

　　3. At the same time, we must also see that China’s printing industry is unique among the global printing industry, and the Chinese printing market is still regarded as a promising developing market. The 13th Five-Year Development Plan for China’s printing industry issued by the State Administration of Press, Publication, Radio, Film and Television is still encouraging. Our offset printing plate industry must strengthen confidence, seize development opportunities, adapt to the development situation, meet development needs, and do Out of our efforts.

　　Four. The international market is still a place where we can do a lot. Our products no matter in terms of technology, quality,

The prices are competitive in the international market and are widely welcomed by foreign users. In the next few years, despite the lack of growth in the domestic market, we will continue to play a leading role in exports. After more than ten years of building, we have already occupied a certain international market share and gained a certain reputation in the international market. There is still huge potential for further expansion in the international market. We must give full play to our competitive advantages and strive to reach more than half of the total domestic production in the near future. In the future, markets with different needs should be developed in accordance with countries and regions at different stages of the printing industry.

　　 (The speech by Yuan Jianxiang, Deputy Secretary General of China Printing and Equipment Industry Association and Secretary General of Printing Equipment Branch at the Annual Meeting of Equipment Branch, abridged)