AEROSOL EUROPE: In November of this year the Aerosol Committe of China Packaging Federation has been hosting the 7th International Aerosol and Metal Containers Exhibition (AEROTECH) in Ningbo. How do you assess the congress?
The 7th international aerosol and metal containers exhibition is a business activity held under the background of weak world economy and also under the China’s economic transformation background .More than 110 exhibitors and more than 5000 visitors attended the show . we had concurrent events such as Aerobal annual meeting , AAF annual meeting , Aerosol committee of CPF annual meeting ,China aerosol innovation awards dinner and the 4th aerosol innovation forums . Exhibition attracted delegates from more than 40 countries around the world , we fully discussed the development of each area , the innovation of the aerosol, and the future trend. It should be said that the activities help to promote the Chinese aerosol industry and accelerate the further integration of the global aerosol industry.
AEROSOL EUROPE: Can you tell our readers a little bit about the conference which was taking place parallel to the exhibition? What have been the main issues of the conference program this year?
The theme of the forum is: "innovation and sustainable development". Aerosol committee of China packaging federation invited delegates from Aerobal ,FEA ,AAF,BAMA, Thailand aerosol association , Japan aerosol association, Australia aerosol association , India aerosol association etc, to participate in the innovation forum. It is an open and equal communication platform, provides an opportunity to dialogue with other areas’ aerosol, this forum will continue to provide information service of communication, standards, technology, innovation and expand business opportunities and so on .
Following are the presentation topics:
1.UK Aerosol innovation --- Patrick Heskins BAMA Chief Executive
2.World Aluminium Aerosol Can Industry – Challenges and Opportunities--- Gregor Spengler Aerobal Secretary General
3.Aerosol Plant Safety – Filling Inside is an Invitation to Disaster---Geno Nardini President, Mexico Aerosol Association (IMAAC)
4.Aerosol Innovation -Practice & Thinking--- Shinya Takemoto Shanghai Daizo General manager
5.Hot water bath testing alternatives, for empty and filled aerosol cans: Actual applications for metal and alu cans and new features to improve productivity ---Jaime Cobo Wilco AG sales and marketing director
6.Innovation and Trends of World’s aerosol--- You Yizhong President of Aerosol Committee of CPF
AEROSOL EUROPE: How is the present situation of the Chinese aerosol industry?
This have to talk about the macro economic situation, as expected, China's economic growth is around 7% in 2015 (according to the IMF and the government announced numbers), economic growth continues to slowdown. China is transferring to the economic model: domestic consumption and service industry as the leading factor, in the process , the traditional manufacturing industry encountered unprecedented difficulties, rising labor costs, market demand is weak, enterprise financing difficult problem is prominent. Aerosol industry in China is under the background , we keep self adjustment and overcome many disadvantages. Aerosol enterprises in China are mainly concentrated in guangdong, jiangsu, zhejiang), shandong and hebei. Aerosol industry continues to develop , sales of supporting industry has steady increase, but benefits declined slightly . However , sales and benefits of filling enterprises are gradually increased . The proportion and production of Disinfection insecticidal products and building products are both declined, steady growth of automotive and industrial supplies , Productivity and production of personal care and household goods are both up. R&d spending of medicine and food continues to increase. In classification of enterprise pattern , own brand enterprises continue to benefit than foundry enterprises. According to the regional division, the trend of developing to the north is evident, but the gap between north and south in research and development investment, enterprise management, product structure is still existence.
AEROSOL EUROPE: What is the main issue which needs to be discussed urgently within the industry in China?
There is no doubt that we need more innovation and improve the rules . Lack of innovation is a primary issue in the development of aerosol industry in China, perfecting the rules is the basis to realize the innovation .
AEROSOL EUROPE: Harmonization and standardization are big issues in Europe. Is the situation in China similar?
We made a number of standards and regulations these years , involving multiple aspects, such as security, products, test methods, reference to the Europe, America and other related standards, the main content is consistent, and still have some differences. We attach great importance to the revision of the standard , and to the communication of standardization with Europe and the United States or other Asian countries, the AAF is an important platform for us to communicate standards and regulations in Asia, we also keep the smooth and efficient communication with FEA , our goal is to achieve consistent standards.
AEROSOL EUROPE: Can you give our readers some rough figures regarding the production of aerosols in China?
The aerosol production of China 2014 is 1.75 billion . Main category in proportion order should be: automotive and industrial supplies, disinfection insecticidal supplies, building decoration supplies, household and personal care, food and drugs.
AEROSOL EUROPE: In which category is still growth potential?
In the next five years, personal care and household products are the key of the development, subject to the manufacturing equipment and management level, we have a way to keep up. Small category are gradually be taken seriously, aerosol fire extinguisher, food packaging aerosol, environmental purification products and plastic aerosol cans is the focus in recent years.
AEROSOL EUROPE: In general, how do you see the future of the aerosol product in China? 欧洲气雾剂杂志:你怎看待中国气雾剂行业的未来发展？
1、The influence of macro economy
International and domestic economic situation have a significant impact on our aerosol industry. For two years, aerosol manufacturing cost falls with the decrease of the global commodity prices, but apparently would not be durable. China's domestic economy growth appeared declining, the slowdown is due to the economic transformation, in the new economic environment ,China focus on promoting the ‘‘B&R‘‘ ,fostering innovation, and Internet + policy, Chinese aerosol also looking for the adjustment of product structure and production capacity.
2、Increasing competition of supporting industries
As the the rapid increase in capacity of aluminum aerosol cans , to effectively solve the contradiction of supply and demand, followed by delivery time shortened, and the Increased efficiency of after-sales service ， profit margins have been falling slightly. Aluminum aerosol cans demand is still expected to be sustained steady growth, aluminum beer bottles and other containers become important development field. Tinplate aerosol cans are still present overcapacity and thin margins, lots of aerosol enterprise self-built can factory become a common phenomenon, which further compression living space of the professional cans factory. The competition of valve market has become white-hot, enterprises develop to overseas become a trend ， advantage of the enterprises who has large-scale production and differentiated products is gradually increasing. Demand of female valve, bag valve is also expected to gradually increase.There is large development space for filling equipment ,especially the technology and market .
3、Product structure is constantly changing
Various kind of proportion of aerosol products in China has greatly changed gradually. Proportion of insecticidal aerosol, polyurethane foam aerosol production both decline, the market appeared to a concentration of several main brands. In industrial products, automotive supplies usage and production Sustained growth, profits of paint products fell slightly due to the increase in the consumption tax, but the other side also promotes the innovation and environmental protection consciousness , water-based paint and other low VOC emissions products get R &D . Stegrowth of household and personal care products in general usage, personal items are mainly concentrated in the body, moisture, sun protection etc. Medicine makeup products is expected to be the development emphasis in the future. Yunnan Baiyao‘s Pharmaceutical products is still outshine others, and have appeared towards the trend of research and development for the sports injury treatment and Chinese herbal medicine. Food aerosol aspect, our independent production edible oil products will be put on the market next year, it will change the situation that we import from Europe, the United States and Taiwan.
4、The expanding financing channels
Following the Guangdong Eurasian Packaging co., LTD and Zhejiang Greenisland technology co., LTD landed on the stock exchange of Hong Kong in 2013, guangzhou botny chemical co., LTD also successfully listed, at this point, our industry has listed 6 companies. The new three board has become a new means of financing, enterprises get improvement and supplement in the corporate governance structure, the share reform, the promotion of management and funds and so on.In the next two years will also have more enterprises entering to capital markets, Industry consolidation and the merger and acquisition (m&a) tide is upcoming .
5、North-south differences and international competition
Aerosol production in China are mainly concentrated in three areas: the pearl river delta, Yangtze river delta and the northern (shandong and hebei province), the overall characteristics are: land tensions of the pearl river delta and Yangtze river delta , high labor cost, various kind of products, and obvious advantages of technology and research and development level. The north China has resource advantage , including land and labor costs are relatively low, part of the raw materials have price advantage. This increasingly acceleration of the fusion steps, mainly in the south products transfer to the north for processing or set up a new factory in north , realized complementary strategic purpose. Dacheng county in hebei province in 2014 started the preparation of the first provincial industrial park named "aerosol" in China, won the strong support from hebei provincial government , this will forcefully promote the north even the China aerosol industry development, and also the examples that aerosol industry has received more attention and support.
With the increase of international communication and the new measures have introduced to boost the economy by the association of south-east Asian nations , to build factories in the overseas or absorb foreign talents abroad in recent years has become an industry boom.
AEROSOL EUROPE: Mr Zhao, we thank you for this interview.